Get Shorty (again, research, not the movie…)

I’m running a high risk of running out of movies with “short” in the title. So this had better be the last blog post on the subject!

In my previous post (here), I looked at a short-sale signal where a stock was shorted after it averaged 3% gains each day over five days (in any distribution). At the end of five days, it had to be up 15%. Yes, I could have just looked at it that way, but whatever, it all works out the same.

The graphs looked pretty good. Seemed like the basis for a system, yeah?

Not so fast.

Continue reading Get Shorty (again, research, not the movie…)

The Big Short (Research, Not the Movie…)

COLL bumpI seem to be in a ‘shorting’ mood lately. Can’t think why that might be… (oh yeah, the general state of the market perhaps?).

Above and below you can see some recent examples of stocks that went up a lot, and then either kept going up or dropped down again. Yes, that amazing analysis is given to you, free of charge.

WTW bump

Riffing on my previous ‘peak crash’ research, I thought I’d look into what happens to stocks that have a big bump up, either as a steady increase over a few days, or a more radical single-day increase. The results, at least from a shorting standpoint, were very pleasing.

Continue reading The Big Short (Research, Not the Movie…)