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Strategies & Market Trends : Shorts waiting to happen

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To: Adrian Cosoroaba who wrote (34)5/20/1996 10:26:00 PM
From: Cadaver   of 852
 
No MASX hasnt been up 200%. It's chart looks strong. And one should never consider the chart alone. News of record earnings, takeover/merger announcements should be considered.

You dont have to look at the charts until the wee hours of the morning:
Look at the top four risers among NYSE, AMEX and NASDAQ combined. Nowadays you'll usually find most risers under NASDAQ, but in some cases (remeber ZE?) in AMEX or NYSE as well. Look at these charts and note down the tickers.

Every day, add 4 more names and check the graphs of all 3 days.
Remove graphs more than 3 days old.

All you are checking is 12 graphs a day = 30 mins at most

Modify this number to suit your time/patience. Even if you take the top two, you should get about one a month...as long as the market acts this way.

When you find one, do some research on the fundamentals. Check to see if there is a buyout announcement. If it's just some news like new CEO or something, go ahead and short it. Earnings jump might not fall too much.

Apply your judgement and you can usually get the "feel" of whether it is a good short.

Cadaver
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