Jeffrey Scott's Shorting Template

Template Description

"Shorting stocks is as much an art as science. Gil Morales has recently written an excellent book about shorting which has stimulated my interest in finding stocks to short. One of the things that I learned from Gil was to look for stocks that were leaders and now failed. In addition to various chart patterns such as Head and Shoulder, often these stocks fail at major moving averages. Couple this with the finding years ago by Chris Wilson, an active particpant in the HGSI community, that on a weekly chart, when leaders rolled over you often found that this was accompanied by a relative underperformance (RS) of the issue vs the SP500. Lastly, as part of the gang of 5, we created a timing indicator called BONGO that often gave a sell signal on a weekly view as stocks became shortable. For this template, I have asked Chris White to help me scan for these key findings on a daily or weekly chart –> RS underperformance vs SP500, failure at major moving averages, BONGO weekly turning to sell signal. My hope is to find shortable candidates early after they have topped and turned to the darkside". Jeffrey Scott

Template Details

  • CategoryJeffrey Scott
  • Release DateJuly 2015
  • TagsScan, Jeffrey Scott
  • DownloadSample Report
  • More InfoBlog Post

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