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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Boca_PETE who wrote (7986)	8/22/1999 8:59:00 PM
From: E_K_S	Read Replies (1) \| Respond to of 15132

Pete: By selling short a similar amount of "vested" stock will also limit any upside too. My approach would be to establish your hedged short position in three positions. When Brinker gives the BEAR signal, establish a 1/3 short position. Wait three months to see that the indicators continue on trend and then establish another 1/3 short position. Finally, if the BEAR gets ugly and it is one of those long term secular trends, then put the final 1/3 short in place. When covering the short positions you can use the same approach by covering 1/3 of the short when Brinker's indicators show some sign of going positive. Continue to cover the shorts in 1/3 increments as the BEAR signals an "all clear". This will allow you to establish a short on an "average cost basis" which will smooth the "trading" bumps over time. Good Luck

To: Boca_PETE who wrote (7986)	8/22/1999 9:06:00 PM
From: orkrious	Read Replies (4) \| Respond to of 15132

I am a frequent lurker here, and I appreciate everyone's insight. By and large, all contributors are obviously intelligent and well-educated. Bull or bear, they present convincing arguments. I have only listened to Brinker's show a couple of times, so everything I know about him I've read here. My personal philosophy is to stay fully invested at all times. What I don't understand is people's inclination to divest themselves of stocks and maintain a cash position, since extensive research has shown that virtually no one can time a market well enough to beat the averages. Even in a bear market, many stocks go up, it just becomes more difficult to pick them. Let's say Brinker calls for a bear market. Let's even make the assumption that he's right. Is it not better to hold onto the stocks you think are undervalued (I know they may become more undervalued) and ride it out? Jay