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paper shorts



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List,

That table I posted listing short sales (the first table was highest PE's)
really was outstanding.  Unfortunately, we're just testing the trades out.
A $104k short on Friday's open would be ahead 20%+ by today's close.  The
return on the untimely stocks was negligible.  It'll be interesting to see
which group works out the best when we finally receive our buy signal.

Anyway, here's my brother's methodology, FWIW.

<<I did some research this morning to paper trade two different Value Line
Algorithms for the short side.  These algorithms are as follows:

Look at the Highest PE screen and only short stocks with a timeliness of
>=3.  Eliminate all stocks with volume < 100,000 per day.  Spreadsheet
attached assumes we got off at the open price on 4/7/00.  Will update the
spreadsheet when we get our buy signal.  I think we need to paper trade this
way for both a sell against the trend and a sell with the trend.

The second screen is the Value Line most untimely stocks.  I looked at only
those stocks with a Beta > 1.00 assuming our trade is correct and thus we
want the ones that move the most.

Attached is the spreadsheet.  Obviously, the untimely is better for one day,
but lets see how the whole system works.>>



Guy