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Strategies & Market Trends : Shorts waiting to happen

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To: Technored who wrote (1)5/15/1996 5:47:00 PM
From: Cadaver   of 852
 
I agree on the cyclical thing. Maybe the market in general is headed north, but some sectors will certainly correct. Communications is bullish now. Software is bearish. Too much competition I'd say. Only a few are rising. Too late to short semis if you havent already done. What else?

My method of identifying shorts is somewhat simple:

1. Do some research on the big movers of the day.
2. If they have weak (or even good) fundamentals, watch them till they shoot up 100% or more.
3. Set a stop sell on 2 points below open from the third day of the rally onwards. Raise the limit as the stock rises. The stop order will be triggered whenever the correction begins.
4. Buy back when volume drops.

So far only three attempts. Good money on ZE, CWKTF, SUPGW
Let me know what you think

Cadaver
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