Some think that shorting is easy. Wait until the market’s selling off and throw a dart. BOOM. Short that one; or do a can for stocks that are overpriced and pick a few of those. Sure, you could do that but is there a better way? How can you get the most out of the price? To be perfectly honest there are tens, hundreds of ways to do it and no one way is *the way*. IDK what the *Guru* you pay $200 for access to his/her site says. If they were raking in the dough, they wouldn’t need your contribution would they.
It’s been my goal in this blog to give you ideas *as the market moves* of items to look at. To think outside the CNBC box. Now here is a scan you could do on your own trading platform to locate some good short candidates and it’s based on a very simple premise which I actually talked about below. Stocks that rise the highest/fastest, tend to fall the fastest/furthest so you have a greater chance of reaping a higher reward than merely tossing a dart. Make sense?
The example given from Bespoke Investment Group is a list of stocks who have risen nine (9) consecutive days as of yesterday, 7/22/09. Now I can’t tell you what their volume is or what the chart looks like, but again, I’m giving you an idea of a scan you can create for yourself on your own platform. Add a volume requirement if you like. Add Slow Stochastics or CCI if you like. See if there are any in areas of weakness, below their 20d or 50d MA. Maybe with a 50d MA that is lower than the prior weeks 50dMA (dropping MA). I think you get the idea. Just start with the basics and good luck 🙂
Kos' Tradebuz 