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Strategies & Market Trends : Shorting stocks: Broken stocks - Analysis

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To: Q. who wrote (2477)7/5/2000 1:03:17 AM
From: chester lee  Read Replies (1) of 2506
 
Ñ,

Shorting the basket was successful. All three stocks took dumps during the week of the index deletions. This time I used GTC covers since I was in training and away from the computer 3 of the 5 trading days during the week of the index changes. I netted 6% on average, in roughly 7 calendar days average. Looking back, a 10% average return was quite achievable, had I more time to monitor my positions. I think we should repeat this excercise again in 6 months. Next time I'll also try my hand at going long a basket of index additions.

chester
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