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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (4539)	1/22/1998 9:46:00 AM
From: Mason Barge	Read Replies (1) \| Respond to of 10921

<<Why would you be short and long this industry at the same time>> I think it's headed basically sideways for a while, but trending up eventually, so I keep my portfolio loaded about 30-40% short and 60-70% long. I keep track of about 21 volatile issues. For each I have a trading range, sort of a weighted 30-day moving average, but I adjust it for news on a subjective basis. The issues that get high in the trading range I short, the ones that get low I buy. I also adjust subjectively somewhat on how much I like the stock, e.g. I assume TER, which I think is undervalued compared to the sector as a whole, will trend upwards, while LRCX, which I think is overvalued compared to the sector as a whole, will trend downward in comparison. I only hold stocks over earnings if I want to gamble a little. This strategy is a lot of work and the individual gains are small, but it's pretty low-risk money for the stock market. And while it's weird being short a better stock while long a weaker one, it works if they get too out of whack. For instance, I'm short ASMLF and long Cymer. They are very closely tied together, except that ASM's market share is increasing while CYMI's market share is flat (and might potentially decrease), so I think ASM is a somewhat better growth prospect than Cymer.