Posts filed under “Trading”

Toe in the Water

I mentioned last week that I believed the technicals
were favoring a
short term upside pop
. I also suggested that I was waiting for this week to make any purchases.

I am purchasing a smattering of QQQQs, SMHs, and SPYs here for a trade; I expect to hold these less than 30 days.

Caveat: understand that I scale in slowly, and have a tendency to be a touch early . . .

Category: Trading

New Column up at Real Money (03/03/06)

Category: Trading

Why the Short Term Upside Bias?

Category: Investing, Technical Analysis, Trading

The Backward Business of Short Selling

If you haven’t already, I strongly admonish you to go read Jesse Eisinger’s column today:

It’s a Tough Job, So Why Do They Do It?  The Backward Business of Short Selling

Here’s the money quote:

Short_interest
"The shorting life is nasty and brutish. It’s a wonder anyone does
it at all.

Shorts make a bet that a stock will sink, and nobody else wants
that: Not company executives, employees, investment banks nor most investors.
That’s why most manipulation is on the other side; fewer people object when
share prices are being pumped up. For most on Wall Street, the debate is whether
shorts are anti-American or merely un-American.

Yet in all the paranoia about evil short-sellers badmouthing
companies, what is lost is how agonizingly difficult their business is. They
borrow stock and sell it, hoping to replace the borrowed shares with cheaper
ones bought later so they can pocket the price difference as profit. It’s a
chronologically backward version of the typical long trade: sell high and then
buy low."

Go forth and read . . .

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Source:
It’s a Tough Job, So Why Do They Do It?
The Backward Business of Short
Selling

Jesse Eisinger
WSJ, March 1, 2006; Page C1
http://online.wsj.com/article/SB114118313441386192.html

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UPDATE March 2, 2006 10:32am: 

See below for more text

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Read More

Category: Data Analysis, Financial Press, Trading

Get Darwinian on Your Portfolio!

Category: Economy, Investing, Markets, Technical Analysis, Trading

Covering the Gold Short

Category: Commodities, Trading

Top Ticking Real Estate is Different Than Stocks

Category: Investing, Markets, Psychology, Real Estate, Trading

Buy Volatility

Category: Markets, Psychology, Trading

Trading Resolutions for 2006

Category: Trading

Death of Volatility

Category: Markets, Psychology, Technical Analysis, Trading