Jeff: Just to put things in perspective, I will give you an update of the progress of my current short holdings:
DATM +31.0% in 3-weeks
CMOS +35.4% in 2-weeks
PLXS + 8.4% in 3-weeks
VECO +17.7% in 3-weeks
ANEN + 9.8% in 1-week
DELL + 1.0% in 1-week
SMOD +10.0% in 1-week
JBIL +12.9% in 1-week
LSS + 1.0% in 1-week
SNDK +10.6% in 1-week
Its interesting to me that the only loss was HLX. Considering the strong bounce-backs last week, I think its important.
I haven't done any market timing in quite a while. I was never very good at it, except that I do keep up with Henry's Crash Indicator. But, even if it does work, it won't protect us from corrections. It must be said, also, that Henry's system, especially if used with the long and short systems, is designed to keep you in the market continuously. Apparently, he only uses the crash indicator as a guide for going to cash. Most CANSLIMers I know do not use the "M" because they have never been successful at it. In fact, Wm. O'Neill has not been successful with it. So, why should I try? If he can't do it with his database, then. . . . . . .? Just my opinion, of course, Jeff, so I'm not harping, only relating my observations over the past three years.
Concerning knowing which short candidates to choose, industry groups could be very helpful. But, I'm currently following Henry's edict to simply buy EVERY candidate when it gives the two primary signals at Friday's close. As you know, the watch list is comprised of stocks that have given one of the signals and has as yet not provided the other. I assume that Henry pays no attention to chart formations in choosing shorts.
The watch list is certainly made up of big hitters. But, I remember the debacle in July 1996, too, where some stocks that I had made +40% on sank like a rock.
John |
