Go to Jeff Salisbury LWGate Home Page.From: "Curt Corley" <cjcorley@hiwaay.net>
Subject: RE: [CANSLIM] Shorting
Date: Fri, 22 Nov 2002 19:01:33 -0600
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You may also want to consider discussing the use of margin accounts for
short selling, although that topic might fall under one of the topics
that Tom has already mentioned (like advantages/disadvantages or
risk/reward).
One other good topic that I rarely hear anybody mentioning is the use of
inverse funds to short the markets. For instance, the Rydex and
Profunds companies both manage mutual funds that attempt to return the
inverse (or double the inverse) of the major indices. This is an
especially nice thing to know if you are trading from an account -- like
my ROTH IRA accounts, for instance -- that will not allow you to sell
stocks short. Buying a bearish mutual fund is a great way to make money
in bear markets with such an account. Buying and selling RYTPX
(double-inverse of S&P 500) on the 10- and 20- day moving average
crossovers would have gained you 118% since July 2000. A buy-and-hold
strategy on the RYVYX (double-inverse of the NAZ) would have gained you
211.2% since July 2000.
Cheers,
Curt
- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com] On Behalf Of Tom Worley
Sent: Friday, November 22, 2002 5:40 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] Shorting
advantages / disadvantages of using shorting instead of buying a put
and/or selling a call option
calculating max/min risk/rewards from shorting
obviously, how to measure/define a good short candidate
how to screen for a short candidate
when to enter a short position (e.g. chart reading)
when to close a short position
use of hard stops
- ----- Original Message -----
From: Gene Ricci <mailto:genr@swbell.net>
To: canslim@lists.xmission.com
Sent: Friday, November 22, 2002 3:16 PM
Subject: [CANSLIM] Shorting
I'm trying to develop a training module on shorting for our local user
group and want to start with an outline. I would really appreciate your
inputs on the minimum concepts that an investor must know before adding
shorting to their bag of tricks?
Thanks in advance,
Gene
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<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'>You may also want to consider =
discussing the
use of margin accounts for short selling, although that topic might fall =
under one
of the topics that Tom has already mentioned (like =
advantages/disadvantages or
risk/reward).<span style=3D'mso-spacerun:yes'>=A0 =
</span><o:p></o:p></span></font></p>
<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'>One other good topic that I rarely =
hear
anybody mentioning is the use of inverse funds to short the =
markets.<span
style=3D'mso-spacerun:yes'>=A0 </span>For instance, the <span =
class=3DSpellE>Rydex</span>
and <span class=3DSpellE>Profunds</span> companies both manage mutual =
funds that
attempt to return the inverse (or double the inverse) of the major =
indices.<span
style=3D'mso-spacerun:yes'>=A0 </span>This is an especially nice thing =
to know if
you are trading from an account -- like my ROTH IRA accounts, for =
instance -- that
will not allow you to sell stocks short.<span =
style=3D'mso-spacerun:yes'>=A0
</span>Buying a bearish mutual fund is a great way to make money in bear
markets with such an account. <span =
style=3D'mso-spacerun:yes'>=A0</span>Buying and
selling RYTPX (double-inverse of S&P 500) on the 10- and 20- day =
moving
average crossovers would have gained you 118% since July 2000.<span
style=3D'mso-spacerun:yes'>=A0 </span>A buy-and-hold strategy on the =
RYVYX (double-inverse
of the NAZ) would have gained you 211.2% since July 2000. =
<o:p></o:p></span></font></p>
<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'>Cheers,<o:p></o:p></span></font></p>=
<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'>Curt<o:p></o:p></span></font></p>
<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
face=3DTahoma><span
style=3D'font-size:10.0pt;font-family:Tahoma'>-----Original =
Message-----<br>
<b><span style=3D'font-weight:bold'>From:</span></b>
owner-canslim@lists.xmission.com =
[mailto:owner-canslim@lists.xmission.com] <b><span
style=3D'font-weight:bold'>On Behalf Of </span></b>Tom Worley<br>
<b><span style=3D'font-weight:bold'>Sent:</span></b> Friday, November =
22, 2002
5:40 PM<br>
<b><span style=3D'font-weight:bold'>To:</span></b> =
canslim@lists.xmission.com<br>
<b><span style=3D'font-weight:bold'>Subject:</span></b> Re: [CANSLIM] =
Shorting</span></font></p>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'><o:p> </o:p></span></font></p>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3DArial><span
style=3D'font-size:12.0pt;font-family:Arial'>advantages / disadvantages =
of using
shorting instead of buying a put and/or selling a call =
option</span></font><o:p></o:p></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3DArial><span
style=3D'font-size:12.0pt;font-family:Arial'>calculating max/min =
risk/rewards
from shorting</span></font><o:p></o:p></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3DArial><span
style=3D'font-size:12.0pt;font-family:Arial'>obviously, how to =
measure/define a
good short candidate</span></font><o:p></o:p></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3DArial><span
style=3D'font-size:12.0pt;font-family:Arial'>how to screen for a short =
candidate</span></font><o:p></o:p></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3DArial><span
style=3D'font-size:12.0pt;font-family:Arial'>when to enter a short =
position (e.g.
chart reading)</span></font><o:p></o:p></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3DArial><span
style=3D'font-size:12.0pt;font-family:Arial'>when to close a short =
position</span></font><o:p></o:p></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3DArial><span
style=3D'font-size:12.0pt;font-family:Arial'>use of hard =
stops</span></font><o:p></o:p></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial'>----- Original Message =
- ----- <o:p></o:p></span></font></p>
<div style=3D'font-color:black'>
<p class=3DMsoNormal =
style=3D'margin-left:.5in;background:#E4E4E4'><b><font size=3D2
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;font-weight:bold'>From:</span=
></font></b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> <a
href=3D"mailto:genr@swbell.net" title=3D"genr@swbell.net">Gene Ricci</a> =
<o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><b><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;font-weight:bold'>To:</span><=
/font></b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> <a
href=3D"mailto:canslim@lists.xmission.com" =
title=3D"canslim@lists.xmission.com">canslim@lists.xmission.com</a>
<o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><b><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;font-weight:bold'>Sent:</span=
></font></b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> Friday,
November 22, 2002 3:16 PM<o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><b><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;font-weight:bold'>Subject:</s=
pan></font></b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> [CANSLIM]
Shorting<o:p></o:p></span></font></p>
</div>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'><o:p> </o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:0in;margin-right:0in;margin-bottom:
12.0pt;margin-left:.5in'><font size=3D3 face=3D"Comic Sans MS"><span
style=3D'font-size:12.0pt;font-family:"Comic Sans MS"'>I'm trying to =
develop a
training module on shorting for our local user group and want to start =
with an
outline. I would really appreciate your inputs on the minimum =
concepts
that an investor must know before adding shorting to their bag of =
tricks?<br>
<br>
Thanks in advance,<br>
Gene</span></font><o:p></o:p></p>
</div>
</div>
</body>
</html>
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