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Strategies & Market Trends : Dave Gore's Trades That Make Sense

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To: Dave Gore who wrote (13007)9/27/2002 10:03:26 AM
From: Prophet  Read Replies (1) of 16631
 
Dave, you raise a very interesting point regarding when shorts know what. I have been observing the same phenomena. Lately, stocks that appear to be quality stocks have taken a prolonged down turn that ultimately dooms the stock after a bad announcement. We need to start tracking these stocks. It is obvious that some groups know something; it is not anything to be surprised of . We are finding today that most celebrated companies and their executives are not as clean as they portrait them to be. I can think of several stocks I am tracking that are candidates for a down fall, purely based on shorting patterns:

- MERQ - Unbelievable numbers over the last few quarters, but over the past month seems to be little responsive to up swings.

- MO - Started down turn four weeks.

- HD - Something fishy about it.

- TXN - Started to go down and you might see it join NSM at the bottom.

- ADI - Although seems to respond nicely to up swings, seems to be caught in the middle as well.

- MEDI - Seems to always surprise. However, it appears to not have too much tolerance for a bad announcement. All it would take is one bad one. It has not responded greatly to the last two days of gains.

.... and so on. Quite honestly, I am running out of picks in my tracking portfolio. I track about 300 stocks and every day it becomes more and more difficult to find something attractive.
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