Re: [CANSLIM] M - How low will it go - reverse CANSLIM.

From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] M - How low will it go - reverse CANSLIM.
Date: Sun, 21 Jul 2002 19:03:45 -0400

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Hi Victor,

Interesting article, thanks for sending it along. I was particularly
intrigued by the percentage gains of some of the funds doing shorting using
CANSLIM, as it was close to what I was doing until mid June by going long on
small / micro cap stocks.

I have done some shorting years ago when I had the time to watch the markets
closely, mixed success, never comfortable with it as I am just too bullish
by nature.

I also have found that I work harder, and pay more attention, when I put
real money to work, even if it's just a small percentage.

- ----- Original Message -----
From: <vchang@win-invest.com>
To: <canslim@lists.xmission.com>
Sent: Sunday, July 21, 2002 6:45 PM
Subject: Re: [CANSLIM] M - How low will it go - reverse CANSLIM.


First I want to say that this is one of the best lists I have ever joined in
terms of the signal to noise ratio and general quality of contribution.

<SNIP>
Maybe what we need is a kind of reverse CANSLIM to help us take advantage of
the bear markets.  Some basic principals to identify falling stocks - both
fundamentally and technically as CANSLIM does so well with rising stocks.
<SNIP>

Sorry about such a long post due to the included article from IBD.  :-)

I was intrigued by Ira's idea of turning CANSLIM on its head
(Counter-CANSLIM or ANTI-CANSLIM?), and found that real life hedge fund
managers are indeed doing this for real.  (See IBD ARticle attached below).

WON did not have a lot of good things to say about shorting stocks,  I do
wonder if anyone on this list has been successful shorting.

One shorting idea I am trying out is to take a small (less that 20% of the
portfolio's value) portfolio of shorts in QQQ, SPY, DIA and an ISHARE of the
UK market index.

Besides trying to make a little money, the big idea being doing this is that
if I have a real short position in the major market indices then I will be
highly focused and motivated in monitoring them and the relevent charts -
hopefully improving the chance of judging M correctly as well as noticing
divergence between major indices etc.   I also feel safer shorting ETFs as
opposed to individual stocks.

Regards

Victor Chang (vchang@win-invest.com)
www.win-invest.com




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