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

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To: Alan Lee who wrote (811)12/27/1997 10:22:00 PM
From: Q.  Read Replies (2) of 2506
 
A reminder to all of the January effect:

Nov. and Dec. can be very kind to short-sellers who pick very low relative strength stocks, especially those with small market caps and low institutional ownership. Often this means broken stocks.

Jan., on the other hand, can reverse a lot of that.

I suppose tax selling in Nov. and Dec., and its abatement in Jan., might be responsible for this.

Anyway, I've covered all my broken stock shorts (except COPY, which I've boxed since it is an excellent long-term short but I don't want to be long in Jan.).

Good luck all in the new year. I'll be spending New Years Day in Germany. In fact, I'll be staying there for a full year.

Cheers, all.
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