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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: Timothy Liu who wrote (11159)	12/4/1998 5:45:00 PM
From: Don Green	Read Replies (1) \| Respond to of 93625

Shorting Stocks is a trading technique Not a statement that the sky is falling. Stocks and markets get ahead of themselves. Yes, shorting a stock has greater risks but also quicker rewards.. The mistake many people make is shorting into strength..I prefer to short into possible or obvious weakness. Like BOEING for example. regards don

To: Timothy Liu who wrote (11159)	12/4/1998 5:56:00 PM
From: MulhollandDrive	Read Replies (1) \| Respond to of 93625

Hi Tim, Shorts are usually wrong, the reason why is they have a tendency to fight the overall trend. Of course you can make money short stocks, but the best candidates are NOT high RS advancing stocks. The best shorts on a technical basis are the ones that break support levels, you can usually find good entry points on those as they try to break the old support (now resistance) and fail. Stocks that break their 50DMA often continue to slide until the 200 DMA, if it breaks that last major support, look out below. SI is littered with amateur short sellers that have missed forward price momentum with the faulty assumption of "what goes up, must come down".....Look at the chart the 5 year chart of some of the tech bellweathers like CSCO and you'll see the folly in that. If you're only interested in scalping a few points you can make money shorting high RS stocks, but in a bull market, you're going against the trend and as you say the risk/reward dynamic just isn't worth it. Also, the market is psychology indicators are counter-intuitive so you are correct to say that high short interest is a bullish. Enjoy your weekend......great week for RMBS! bp