[CANSLIM] Non Canslim

From: Andreas Himmelreich <judgejimmy@web.de>
Subject: [CANSLIM] Non Canslim
Date: Fri, 8 Feb 2002 13:32:26 +0100

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Hi,

hope you get not mad at me, but maybe you think about going short in market 
downturns.

I am new in this teritorry as well, nevertheless I can not see a reason for 
staying flat and waiting bored for the next
follow through day. I know its not Canslim, Oneil says that he was not able 
to profit in the bear markets beeing short (only three out of 9 or 
something like
this), but I really can not see what is so difficult.

Its as easy as beeing long if you put the same money management and market 
timing rules to it.

How I do it:

For the main part (50 - 75%) I short the whole Index, I do that with going 
short on QQQ (and Index fund, heavily traded, trillion ticks a minute 
therfore
very liquid) The rest (25%) I put into 10 - 20 companies going short (I use 
a wider SL on them, 10 - 15%)
I will cover whenever IDB calls the next FTD.

So I got a lot of diversification and the results will not be as good as 
during bull markets using canslim, but they will be substantially better 
then
going into bonds and fixed rate stuff.

Do not feel morally good about going short: Well, if we would have listened 
to the short sellers 12 Months ago, Enron would have been out of
the woods earlier. Look at Germany: Short selling is not allowed, for 
institutions only for one day.

The nasdaq of Germany Index (Neuer Markt, translated New Market) went from 
1000 to 9500 and from 9500 to 600 (now at around 1100). Billions have been
burned by criminals. And there was nobody who went against the trend and 
said the public that certain CEOs are doing fraud. So the volatility is 
much higher. Lots of frauds (like 20 little "Enrons" in a market that has 
300 stocks and much more to come).

See you

Andreas


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