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Strategies & Market Trends : Value Investing
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beagle57
E_K_S
Nya_Quy
The_Commodore
To: E_K_S who wrote (65592)12/5/2020 1:40:56 PM
From: FIFO_kid24 Recommendations   of 78794
 
It certainly looks tempting to short stocks but realize you are currently fighting the loose cannon money printing bandits which have been the main driver of this euphoric market. I think in this market I think forensic shorts where you think there is obvious fraud is going on and being a whistleblower to the big wigs like Carson Block, Marc Cohodes or Jim Chanos to do the dirty work promotion for you is the route with the least risk. While fad shorts are excellent timing the top is challenging. Generally, I prefer shorting fad companies that have really no benefit to society based upon a fashion or activity craze or in a business with a high cost structure and obsolescence risk.

If you do it keep your position initially at 1 % with the option to go to 3% if you pick 2 names with 2 scales and up to 5% with 3 scales if you pick one name otherwise it is going to be too risky for my taste. I would also hedge the position with a competing technology if you believe it will be mandated. Nothing would be worse if fuel cells become the next Tesla. One thing about fuel cells to be cognizant about is that technology solves the materials shortage dilemma with EVs if the product were to exhibit a major ramp up.

Personally, I think it is much better to consider this strategy when there is Federal reserve tightening and the market breadth starts to falter.

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