This entry was posted on Friday, July 20th, 2007 at 8:15 am and is filed under Education, fun, shorts are longs?. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Anyway I had some good personal submissions for todays short candidate. I saw a couple that had market caps the were a bit small. The one I have settled on is HSY. Man that chart is worse than a chocolate bar on a hot sunny day. Awesome. It will be added to the long portfolio. Remember the exit……
You guys have got to get me links from other sites. User submitted short ideas are good but having hard links is even better for posterity stake.
I received some emails saying this exercise is a sign of bull market mania. Nothing could be further than the truth. I want to show you a system, with specific exit and entry rules. I have tested this system over many many years. It works in bear markets quite well too. The only variable that I am unsure is how the grabbing of others shorting ideas will impact the system. I suspect the performance will be quite good. Maybe we’ll actually outperform the major indexes. This is going to be fun regardless. The exit is one that is so simple, but it is one John and I have found to be extremely powerful when buying those long red bars downward. The component that I want you to watch is exposure. Watch how the system lessens exposure as the market has the inevitable pop up days. Especially when it has 4-5 holdings. As in backtesting you have to choose how much money to allocate and how many holdings this will encompass. 5 holdings in this live test is quite aggressive. But this is purely an educational fun exercise. Let’s see what this little monster does. Get me those links!
Have a Great Day!
Dave Johnson