Click chart to enlargeUnfortunately, we are not able to short individual names because we trade individual and business retirement accounts, in which margin is not allowed. It's unfortunate, because our performance was far better when we had simultaneous positions in uptrending and downtrending stocks, and it gave us peace of mind in case the entire market collapsed.
We still keep a list of shorts just for fun, and CROX has been on that list since it broke down in November. We never had reason to remove it from our list, and now CROX is set to open down more than 50% tomorrow at $4.50
We are looking into a way to transfer some of our assets into a marginable account in order to take advantage of the market's 'dark side'. It always seemed easier to us to profit from downtrending stocks considering that fear accelerates faster than greed, causing stocks to fall 3 times faster than they rise.
Almost all stocks eventually go to $0 (effectively if not literally), and they spend the vast majority of their life cycles going down. For this reason, most traders lose money in the market because by going long, they are trying to swim upstream.
Almost all stocks eventually go to $0 (effectively if not literally), and they spend the vast majority of their life cycles going down. For this reason, most traders lose money in the market because by going long, they are trying to swim upstream.
We have zero faith that ugly rubber shoes will ever make a comeback. Any CROX bagholders should have bailed out a very long time ago, and should send a stale fruitcake to Karen Finerman.
No comments:
Post a Comment