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

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To: Vol who wrote (2107)2/22/1999 9:49:00 PM
From: Q.  Read Replies (2) of 2506
 
Vol, shorting the low RS neg cash flow screen does nicely in most
market conditions, but in a correction to a recovery it does
horribly.

You can see this in the two following table, which are actual
screen portfolio performance-to-date as of the close today

screen Russell 2000
6/10/98 (near market peak) -33% -12%

10/7/98 (near market bottom) +52% +19%

Quite simply, you do not want to be short broken stocks in a market rebound.
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