market up huge again today where do you short? You can't unless you either want to trade for very tiny ticks or lose money. Just going long will make you huge overnight gap gains.
I think Frank is always long a number of stocks and short a number. I guess his strategy makes sense as long as profits from wins outweigh losses/flat returns from shorts even in a steep ascend like this one.
I did a small blog article not too long ago about the US indices. In short, if you can catch either the biggest 3 consecutive days drop or gain in the mkt each year, you can outperform the indices themselves, all the time. If you catch them both, you outperform the market by great margin. The rest of the year you can park the money somewhere safe. It is a simple test that I did after reading the book Black Swan. Link to the article, http://newsletter.neoticker.com/?p=343
market has been trading up between 75-100 for the last 4 hours. no risk.... only risk is not buying.. russel 2000 broke out above 850, finally.
I know there is no risk now, but everyone should know that this wont last forever...... This is certainly reminding me of 1999-2000, however this time its on a much larger scale, this time its global.