Dennis,
Things always look easy in hindsight. If YHOO splits 3 to 1 or 4 to 1, and have a blockbuster result, say 0.25, the internut game will be totally different. YHOO could well shoot up to 550 and consolidate at 500, i.e., after split 166.
Shorting momentum stocks based on fundamentals is surely suicidal. It is doable based on the technical strength of a stock, but it is still much more psychologically demanding than going long. For example, I seldom did panic selling, but I did panic covering several times. I once shorted Dell, LU, CSCO, BRCM and NSOL. I made money from shorting DELL and NSOL and lost money on other bets. In my opinion, shorting a stock below its resistance line is relatively safe, because I know when to cover. I really would like to learn more about the art of shorting stocks from this thread.
Steve |
