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Strategies & Market Trends : SHorting Stocks: Education/strategies/techniques

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To: RFH who wrote (44)	3/25/1997 5:41:00 AM
From: Early Bird	of 99

For those of you into technical analysis....(and those of you who do not believe in it)...... First of all I would like to reccomend a book to you that will EASILY explain TA to anyone in the first 20 pages ! The book is: Stan Weinstein's Secrets for Profiting in Bull and Bear Markets. Some advice in his book is to NEVER short a stock that is above it's 30 week moving average. From my own experience, this has proven to be a good concept. I look for the price to intersect the 30 week MA downward, after it has been in a long free fall. I personally keep my own graphs which i chart myself, on all stocks that I am thinking of shorting (or going long for that matter.) The historical price tables can be found by going to microsoftinvestor.com. From there go to historical charts and from there set preferences to tables going weekly for one year. go back about 45 days and compute the moving average. Once the 30 week MA has been calculated, keeping it up is a very simple task; At the close of each friday, add the closing price of the stock that you are tracking to the previous 30 week total. Then subtract the share price from 30 weeks ago and voila ! You now have the new 30 week total. Simply divide it by 30 to give you the moving average. In my chart book I keep a page before each graph which has the following headings: Date, Price, 3o Week TOTAL, and 30 Week MA. After subtracting the price from 30 weeks ago from the total, I simply draw a line thru it so I know where to go to next time to compute the NEW 30 Week avg the following week. I then plot the prices on a graph, with a red line depicting the 30 week moving average. This may sound like a lot of work but it is not and it is a VERY good way to keep things in perspective by looking at share prices WEEKLY rather than daily. It is Also worth the effort if it makes you a profit and it does for ME ! Any questions, E mail me. Mike

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