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To: Sam Sara who wrote (9140)7/2/1999 10:51:00 AM
From: Dany Tremblay  Respond to of 28311
 
Your question and requested answer/opion somewhat violates the portion of my text which you make reference to in that I don't short to bet against the market. One of my basic trading rules is as follows: don't do much technical analysis - it is all fairly useless fluff. All you need to know is in the ticker, the volume and the momentum. The market is mostly not logical - fear and greed sums it up.

So, I rarely short in anticipation of a move. Even basic shorting plays like buy the rumor and sell the news or buy the run-up and sell prior to earnings or splits are not givens. Although generally true most of the time, they will turn against you if the market, world affairs, related commodities or company are in some kind of strange cycle. Thus, every play and every stock is different every time. I don't predict much - I watch, I watch, I watch. I usually don't know if I will short until moments before I do. Same as when I go long.

Another one of my trading rules is: stay within one sector. Know all the player, their products and how they compete against each other. Thus, I will only short or long something I am very familiar with. I don't do anything but one sector and nothing else. I don't have the foggiest idea how to play food, banking or industrial stocks. Therefore, if I watch closely enough those stocks that I am familiar with, their behavior will be the best indicator as to how to play them since I know their performance the best.

I hope this helps. Ultimately, you need to make your own decision based on your best research. Trading on tips or other people's opinion will not bring the results you desire. The simple reason for that is that the person supplying you with "the tip" does not have your financial interest at heart and really could not care less whether or not your lose your shirt.

Regards,
Dany