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You need to decide on if you are shorting for fundamental reasons or
technical reasons or both. For technical reasons look for stocks that
have had a nice run up for several days and it is now time for profit
taking.
For fundamental reasons look for labor problems, Asian exposure or
anything that could cause a slowing of earnings growth.
Harley
Heidi Stubner wrote:
> I'm testing a few theories on using indicators on shorting stocks.
>
> Thestreet.com provided the following criteria for shorting:
>
> 1) A major downside break of at least 1 point or more.
> 2) Increase in volume (more than 100% rise versus average daily
> volume)
> 3) Stock closes below its 50-day moving average.
>
> I'd appreciate your comments on this, as I've tried using this theory
> and
> don't particularly find it of much value.
>
> Thanks.
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