The Shorts are much more technical in nature. There are some fundamentals here as well, but probably more like 70% TA. Basically I look for stocks that are highly priced; that has gone parabolic and that is showing signs of the byers stepping away from the punch bowl. I use an advanced chaos based indicator that I run in TradeStation to filter out the stocks.
Thank you. What's odd, is that I've had the exact same reverse luck. I find technicals work much better when going long and my "gut" works a lot better for going short. What's more, I can consistently lose money by going short on technicals on a majority of systems. One was so good in fact, that I reversed it and made money. I may just have to come up with better filtering criteria for the short side, I would think.
Just bought 3 XLE (Energy Trackers) 52 Calls at 1.75 as a discretionary trade based on my view that Crude is ready for a bounce.
STOCK TO BUY FOR SEP 18, 2006 (GMRK) STOCK TO SELL FOR SEP 18 (ALY) -11.6% RETURN Check out NITE that I exited this morning for a 9% profit, down more than 5% today