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Technology Stocks : Dell Technologies Inc.
DELL 133.20+5.7%Nov 26 3:59 PM EST

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To: Lucretius who wrote (105143)3/1/1999 12:42:00 AM
From: freeus  Read Replies (4) of 176387
 
I'm reading "point and figure charting" by Dorsey and found this:
"There is less risk in selling short in a bear market than in buying in a bull market. The average gain in a bear market is 4.7 percent less than in a bull market, but this is more than compensated by the fact the average time for the gain in the bear market is 3.3 months shorter than for a bull market. Therefore traders who do not sell shrot in a bear market are acting contrary to their own best interests. In a lesser period of time, at smaller risk, selling short in a bear market will actually make more money than being long in a bull market. The bull market profit is at the rate of 4.09 percent per month while the bear market profit is 6.36 percent per month. Traders cannot afford to lose such a profitable opportunity. They must learn to adjust their thinking to play both sides of the market.
He suggests buying puts if one is afraid to short.
P. 31
Point and Figure Charting by Thomas Dorsey
AVailable at amazon.com.
Interesting.
Makes bulls like me think.
Freeus
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