Zeev's Ideas

[Koikaze]

ZEEV, TRADING - up to ZEEV:322062, 11/14/04

11/13: (321925) (*COMMENT*)
Zeev - Being a swing trader that does not short stocks(Except the QQQ), how do you remain profitable in a sustained down trend?
(*END*)

High cash levels, diversification, few core issues and down channel swing trading. In rare occasions I have been as low as high as 90% cash, with only few core issues remaining. If you look at the bad 2000/2002 market, good core issues still advanced quite nicely. Even in a bear market, there are violent 30% plus counter trend moves up, which, if you are cash rich, you can exploit (late May 2000, late December 2000, early April 2001, late September 2001, early July 2002, and so on, all period where I shifted rapidly (and sometimes, a little prematurely) from heavy cash to "fully loaded", and quite profitably. I am being criticised right now for being between 40% to 50% cash since we hit 2025 on the Naz, a solid 55 Naz points below, but I would not have been able to launch 12% on BSTE, ZBRA, SAM and NTMD Friday (of which only NTMD and SAM stayed on), if I would have been fully invested...