Ken, I recall you saying once
that you don't short stocks. I also know you linked me with a short interest analysis tool to analyze performance with respect to short interest to see if there was a correlation to short squeeze plays. correct?
I am just curious to know if you have ever considered using your seasonality analysis tool in the inverse form to identify candidates for short sales as well. It seems to be that if you did, then the number of candidates to keep your money working for you would possibly double each month.
Purely a technical approach to investing. I know that you may have a philosophical disagreement with this approach, I just thought it would be interesting.
My first impression of the tool was to go long at the peaks, then short at the bottoms of the power rating index. But I realized the analysis tool is looking for gains of 10% for the months. When the rating index is in the trough, that could simply mean a gain of 0%. So the tool would have to be set up according to losses of 10%.
Sorry to ramble, but I enjoy our short discussions and wanted to expand a little on this particular topic.
One other thing, don't you think the historical index should include this years data as well? It could help in determining this year's trend. For example, 2005 july/august is up, 2006 july/aug is down. 2007 july is up, so I would reason that 2007 Aug has a good chance to be up. (All with an eye on all the rest of the data as well of course)
As always, thank you for your informative and helpful websites and commentaries.
AI
