I have found that entering long positions has not been as profitable as one would like in this current market. However, doing the reverse, by shorting the worst MOS stocks has.
It seems like we are getting into a period of serious correction at the very least, and perhaps something a bit drastic. Only time will tell, but right now the value of a stock is coming under higher scrutiny because of it. Everyone with their hand in the market is evaluating their holding for dogs and cutting accordingly. A stock that may have had low MOS but kept running would be overlooked in the raging market of yester-months. But now, funds are looking to shift their equities for more efficiency. So what we can do is look for low MOS stocks, research them to see if that MOS has any justification, and short accordingly.
For me, I don’t believe I have to be on the long side to make use of Rule #1 strategies.
September 16th, 2007 at 8:57 pm
I agree! I have found it is quite easy to find stocks that are totally over-valued when looking for rule1’s. I started shorting some them with 1 week windows and it works! Can’t wait for this tool!