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Strategies & Market Trends : Shorts waiting to happen

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To: Cadaver who wrote ()5/15/1996 4:38:00 PM
From: Technored   of 852
 
Hi. Good luck on keeping this thread alive. The speculators have been rewarded with so many 'food pellets' that a thread on 'footpad shocks' might be somewhat sparse. But you can well argue that a hedged strategy is appropriate for such a high market; it has to correct sometime.

I have spent some considerable time backtesting Telescan criteria sets to identify a good short screen. To make a long story short, as it were, there ain't-no-such-animal during a bull market. If, for example, a stock is very popular and has a high price/sales ratio, it will probably move higher in a bull cycle. Indeed, professional bears are now about to go out of business. Maybe when the last one capitulates the correction will start. Some would say that there has been a general bull trend since 1974, so there is a lot to correct. I won't bore you with the stats on the general market level; everyone has heard that one by now.

But, one can also say that rotational corrections are obvious...as the semi equipment makers showed recently. So, you might try to consider the next industry group to get a reality check.

Regards, Logan
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