My research indicate that over time the shorts should only experience marginal losses in the a bull market while providing an ample hedge for sell offs. However, shorting has its own unique problems and risk so an alternative is to use tracker stocks, like the SPY or MDY as an appropriate hedge.
STOCK TO SHORT FOR NOV 07, 2006 (LXK) STOCK TO SHORT FOR NOV 07, 2006 (POT) STOCK TO COVER FOR NOV 07, 2006 (SU) -6% est. RETURN STOCK TO COVER FOR NOV 07, 2006 (HON) 0.57% est. RETURN
STOCK TO BUY FOR NOV 08, 2006 (TWGP) STOCK TO BUY FOR NOV 08, 2006 (USAP) STOCK TO SELL FOR NOV 08, 2006 (TTI) 13.6% est. RETURN STOCK TO SELL FOR NOV 08, 2006 (STEC) -4.8% est. RETURN
STOCK TO SHORT FOR NOV 08, 2006 (TAP) STOCK TO SHORT FOR NOV 08, 2006 (DO) STOCK TO COVER FOR NOV 08, 2006 (PNRA) 6% est. RETURN STOCK TO COVER FOR NOV 08, 2006 (FSH) -4.75% est. RETURN