Fair and Balanced

  • Posted by
  • on May 17th, 2010

In the interest of saving time and space(laziness?), I provided only my list of stocks exhibiting bullish underpinnings in last week’s market.  What I’m enjoying about the blogosphere and StockTwits is the push it gives to think deeper and raise my level of analysis and disclosure.  First, let me show you my list of potential downtrend candidates exhibiting poor response following the ECB’s bazooka firing.

Why not produce this list in my first post?  I need a separate post to discuss my approach to alpha and beta, but it’s my feeling that a continuation of recent events could be most easily played through index shorts…if we go down, I’d just as soon participate with the highest correlated, highest beta play in order to gain the most reward for the least amount of risk.

Upside, however, would appear to be more specific to individual names.  It might be that I’m too bearish on overall conditions, but after a yearlong moonshot most of the bullish rocks have been turned over.  So I’m thinking I’ll play individual(alpha) moves to the upside but index(beta) moves to the downside if key stocks start losing their May 7th lows.

Hope that makes sense…thanks to Vic Scherer for calling me out on not producing both lists!  He provides invaluable info through his day-long tweets, and there’s nothing better to crystallize one’s thoughts than getting expert feedback.  Please chime in anytime you want, it’s part of improving my trading and writing.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus
Derek Hernquest Blog