skyscraper

skyscraper


    Choose language
    flag-widget
    flag-widget
    flag-widget
    flag-widget
    flag-widget
    flag-widget
    flag-widget

    Use "short-sale" in a sentence

    short-sale example sentences

    short-sale


    1. I also found that the Big Stock Principle is also at work in short-selling, since the best short-sale targets in a bear market are precisely those stocks that were the big leaders in the immediately preceding bull market phase


    2. Exactly how and where one sells a stock short is critical in being able to capitalize on a prime short-sale opportunity, and this chapter expands on the precise timing of short-sales using daily charts


    3. In addition, we will discuss some new ideas in short-sale chart formations and set-ups, which add to our arsenal of topping formations that provide the necessary structure to our short-selling methods


    4. Previously, our universe of viable, short-sale set-ups consisted of the standard head & shoulders (H&S) type of formation and its derivative, the late-stage-failed-base (LSFB)


    5. It takes time to wring out all of the bullish sentiment in a stock, which is why most short-sale candidates take 8-12 weeks or more to set up properly before they break to the downside


    6. In general, we prefer a minimum of 2 million shares in average daily trading volume for our short-sale candidates


    7. In general, avoid thinly-traded stocks as short-sale candidates, as risk can correlate inversely to a stock’s trading liquidity


    8. If you are down 3 percent on a position and the stock is trading above-average volume as it rallies from your short-sale point, it is best to implement the 3 percent threshold for your stop-loss with the idea that the stock can always be re-shorted if the rally suddenly fizzles out


    9. One way to handle stops is to use a “reverse-layering” technique by “peeling off” portions of the position as a short position rallies against you, say 1/3 of the position when it is 3 percent above your short-sale price, another 1/3 when it is 5 percent above, and the last 1/3 once the stock has rallied 7 percent past your short-sale price point


    10. Once a stock has broken down from a proper short-sale set-up and topping formation and has been in a downtrend for at least a few days to a few weeks, the 20-day is often a useful reference point for a legitimate upside turn and rally in a stock, and hence offers what can be a nearby trailing stop

    11. This requires waiting and watching as potential short-sale formations that begin to form complete their chart patterns


    12. Screening for stocks with heavy-volume price breaks on a daily and weekly basis is the most effective way to catch potential short-sale targets as they initially come under distribution


    13. The prerequisite for any short-sale set-up and topping formation is a substantial prior price run, such as CROX’s 13-month upside romp through late 2006 and most of 2007


    14. This distribution in the left shoulder and the head made GRMN a prime short-sale target as the market began to top in late 2007


    15. It is important to understand that the head & shoulders formations of both CROX and GRMN did not form in a vacuum; they topped and formed their short-sale set-up formations as the market itself was building its top


    16. Short-sale target stocks that may be building right shoulders in an overall, potential head & shoulders topping formation must be watched within the context of the general market as the two are inexorably linked


    17. This is a very important concept to keep in mind as we discuss the other topping formations and set-ups that we look for in our short-sale operations later in this chapter


    18. The second primary short-sale set-up and topping formation is the late-stage failed-base (LSFB), a corollary to the head & shoulders top that is usually seen more frequently than the head & shoulders formation, but which can also be seen as part of a head & shoulders formation, as we shall see a little bit later in this chapter


    19. As was mentioned earlier, short-sale set-ups and topping patterns can overlap, and in more than a few cases we observe a combination of topping patterns that occur as pieces of the overall topping process


    20. Both points 1 and 2 would serve as logical short-sale entry points, and profit-taking rules would likely have you covering around the 200-day moving average and then shorting the second rally into the 50-day moving average at point 2 on the chart

    21. In other cases, as with head & shoulders and LSFB short-sale set-ups, the stocks often will rally to points just above the 50-day moving average after the initial breakout failure off the right side of the POD


    22. In this case the stock displays a necessary characteristic for such a long-duration POD formation to be valid as a short-sale set-up, and that is the very rapid, four-week price run-up on the right side of the one-year-long punchbowl


    23. The rallies into the 50-day line were the optimal short-sale points, and put you in position to benefit from the ensuing, sharp break to the downside that extended into February of 2008


    24. It is important to note that short-sale reference points occurred throughout the backing-and-filling phase that began in late June and continued until the stock split wide open in September


    25. You can here see why taking profits when a short-sale position becomes extended to the downside is critical in handling these types of plays


    26. A high-probability short-selling method we’ve discovered, which is unrelated to the normal types of short-sale situations we look for in the head & shoulders, late-stage-failed-based, and Punchbowl of Death short-sale set-ups is what we call Exploding Rocket Stocks


    27. 7 percent of all rocket stocks short-sale set-ups from 1991-2008 were profitable, and 84


    28. 2 percent of all rocket stocks short-sale set-ups fell at least 50 percent off their absolute price peak on the “rocket ride


    29. 5 times did so over a period of more than four weeks, so these would not qualify as rocket stock short-sale candidates


    30. That said, obtaining a proper borrow from your broker in these stocks, which tend to be thinner, smaller names, is not always easy, and we have found that we are only able to borrow such stocks for short-selling for half the stocks that show up as rocket stock short-sale candidates

    31. Timing your short-sales properly, waiting for that proper window of opportunity to develop in conjunction with a breakdown in the general market, is even more important than when buying stocks on the long side of a bull market


    32. At the same time, the trader is obligated to pay the brokerage firm any dividends that accrue over the short-sale period


    33. The March-earnings announcement of the 1993 year-end was the perfect short-sale signal, but one could wait for the June quarter's undeniable confirmation and still make good money


    34. One point that made HBJ different in short-sale annals was that the big float (72-plus million shares outstanding), the institutional following, and the Wall Street participation all combined to make it an easy stock on which to have an opinion


    35. Robert McAdoo of Oppenheimer castigated sellers in his October 16, 1989, report: "The doubters continue to promote the idea that Texas Air is a great short-sale idea


    36. Unfortunately, in some instances, the lag time between the discovery of the fatal flaw and the demise of the company results in a change in the macroenvironment that bails out the troubled short-sale candidate


    37. The next notable Baruch-short-sale episode shows him a master of supply and demand in the commodity market


    38. Although master of the short-sale discipline, he missed the largest move in the history of the American markets


    39. It adopted a short-sale rule prohibiting short sales at or below the current inside bid when that bid is below the previous bid


    40. • When the short interest peaks at a staggering percentage of total volume and the lemmings embrace pessimism, remember that the stories of short-sale candidates are lessons in the antithesis of good company characteristics

    41. The current Federal Reserve requirement (Reg T, as it is known in the industry) is at 50 percent, meaning that a customer must initially put up 50 percent of the short-sale price in cash or 100 percent in fully paid securities


    Show more examples