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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: dennis michael patterson who wrote (13573)	8/2/1998 2:56:00 PM
From: Robert Graham	Read Replies (2) \| Respond to of 42787

Yes, your observation about shorting DELL being a difficult way to make money because it is much more difficult managing the risk of that kind of short is well said. It is usually (not always) a good idea not to short in a bull market. Why take an approach contrary to the trend and overall sentiment during a time there are many ways to make money with the trend? This does not make any sense to me and in many instances is done by a trader looking for thrills instead of money. Having that said, a well-timed short can be off well and in a bull market can pay off quickly. I do have to hand it to you on your success in shorting DELL. Now that the market is changing, the time may come for the shorting stocks in the market. But I do not think the time is here yet to go out picking off stocks. I would look for stocks that have deteriorating technicals and price action, and responded poorly on market up days, but are still holding above important supports. I would watch closely the stocks that are holding up the market and look for the time they are breaking down past important supports. Meanwhile, I would be compiling a list of short candidates. First short the weaker candidates before shorting candidates like YHOO or INTC. There are many stocks out there. Let the market and the individual stock tell you where it wants to go, and then time your short. As far as playing the long side, I would refrain from playing the market at this point in time to see what develops this week. If a person must play, I would not lower my standards. I would play technicals sound stocks that have demonstrated recently upward momentum. I would also attempt to hedge the risk involved with the trade for instance by choosing stocks that are in the public spotlight and currently are being driven by positive news. Bob Graham