RIMM and all the other momo's are priced for perfection, 1 miss and all the momo guys bail out and you own dead money for awhile....Not saying its not a great company, i've had a blackberry for many years, but the stock is dead money for the next quarter at least.
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New stock_trad3r index
- Thread starter stock_trad3r
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Frank I agree with you, no question. Just saying that I personally prefer a 20% return with low volatility (That I think your short/long approach is aiming at) than a 50% return with a very bumpy ride (that's Stock is knowingly or unknowingly aiming at).Quote from frank grimes:
Mak, I would argue that a long/short mix has a long only momo list beaten in every way, including risk/reward in a huge way. He may think his picks are bulletproff, but how many RIMM's can happen before he's broke?
Mak, thats been my m.o. since i've been in the business, singles and doubles...
Great RIMM vid...
Second one down....
http://www.freetradingvideos.com/vlog/default.asp?category=1
-H
Second one down....
http://www.freetradingvideos.com/vlog/default.asp?category=1
-H
With the fall in dollar and rise in oil should be a good day for the index
Stock trader, you have no methodology.
You picked heads (momo stocks), and you were right. It doesn't mean anything. You don't have any special ability or methodology, just the ability to get lucky like anyone else.
You picked heads (momo stocks), and you were right. It doesn't mean anything. You don't have any special ability or methodology, just the ability to get lucky like anyone else.
Quote from wutangfinancial:
Stock trader, you have no methodology.
You picked heads (momo stocks), and you were right. It doesn't mean anything. You don't have any special ability or methodology, just the ability to get lucky like anyone else.
Regardless of stock's methodology, a distinguishing feature of the current market has been the separation of stocks into the "haves" and the "have nots". High momentum (or high relative strength) stocks have done very well and conversely the weakest stocks have fared very badly. This phenomenon has be going on for at least 12 months.
This is not just a wild assertion, but a conclusion I have reached through development of my own software for screening and some rather intensive study of this behavior. There has been a lot of money to be made in following relative strength strategies (both long and short).
Of course you need to be somewhat more sophisticated than just buying new 52 week highs, and a bit of market timing and fundamental analysis doesn't do any harm, but the overall message has been very clear.
You have just described what happens at the end of a bull market where just a handful of stocks are leading the rest of the market while the rest go down. The indexes appear as if they are going up, but only the momos are keeping it up. When the momos fail, then the indexes come down in a big way because there are no other stocks propping them up.
Quote from dcraig:
Regardless of stock's methodology, a distinguishing feature of the current market has been the separation of stocks into the "haves" and the "have nots". High momentum (or high relative strength) stocks have done very well and conversely the weakest stocks have fared very badly. This phenomenon has be going on for at least 12 months.
This is not just a wild assertion, but a conclusion I have reached through development of my own software for screening and some rather intensive study of this behavior. There has been a lot of money to be made in following relative strength strategies (both long and short).
Of course you need to be somewhat more sophisticated than just buying new 52 week highs, and a bit of market timing and fundamental analysis doesn't do any harm, but the overall message has been very clear.