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To: Ross who wrote (3964)4/7/1998 2:39:00 PM
From: Druss  Read Replies (2) | Respond to of 12754
 
From the 'Zen of Shorting'
The great short Chu Mei Ash in addition to skillfully using Candlestick charting is also among the first recorded to use other market indicators. This discussion was held between the Master and a student about two of his most successful shorts.
"Master," the student said, "I noticed you covered your short of Ster Noh Sake Company for a great gain. May I ask how you determined such a successful company could be a good short?"
"Most certainly, young toad." the Master replied, "I used information I got from Ka Shasan and Ro Sosan."
"I am sorry I do not know them, Master."
"Certainly you do, you have often mentioned them to me, I suspect you did not know their names. They are the two drunkards who live under the bridge not far from here." the Master said.
"Master! They are the most disgusting of creatures, they drink perpetually, accost passerbys for money, live in filth, they smell appallingly, and are endlessly rude to all that get near. I know of many samurai who would have taken their heads by now, the only thing that has saved them is they do not wish to befoul their swords in such a manner. Surely you do not mean those two? How could you even use San or honorable at the end of their names?"
"Just so, have you not noticed the huge pile of sake bottles near the bridge. I also noticed that the bottles were changing that they were drinking Bird of Thunder sake. From speaking with them I determined that all of the drunks in Tokyo were changing to Bird of Thunder. So I shorted Ster Noh. I call them San for the amount of honorable gold they earned me."
"Indeed, young toad, this is my second short from using them. As you noted they smell appalling and this intrigued me as they are forever falling in the river drunk and cleaning themselves when they did. I discovered when they have money they buy the favors of peasant girls who are working planting rice outside the city. The girls wade in manure all day."
"Then last planting season I noted the two sake fiends were not coloring the air. They told me they were still enriching the peasant girls. So on checking further I discovered that Lo Dung Rice company was not manuring their fields. So near harvest time I shorted them."
"Truly Master, you are the most cunning of men. I would never have thought to seek information in such a manner. I see I have much to learn." the student said.
"Yes young toad," the Chu Mei replied, "There is much for you to learn, though I fear you may have missed the greatest lesson for you here today."
"I don't understand, Master, what lesson have I missed?"
"You live just downstream from where the two drunks are constantly falling in the river. Is it not true you draw your drinking water from the river?"