Tutorial-Prefered Stocks to Own

[Ken]

Thanks Mike. My understanding is that most CANSLIM investors tend to stay in cash during bear markets. However, if you are to play the short side, what would be your candidate selection criteras ? Would the focus continue to be the big leaders from the previous bull legs, especially the ones that went parabolic, or something else ?

Best-
Ken

[Mike]

Thanks Mike. My understanding is that most CANSLIM investors tend to stay in cash during bear markets. However, if you are to play the short side, what would be your candidate selection criteras ? Would the focus continue to be the big leaders from the previous bull legs, especially the ones that went parabolic, or something else ?

Best-
Ken

Ken,

I generally don't short stocks that trade less than 1M shares on average. They need to have a recognizable shorting pattern such as head and shoulders or a late stage base failure. I short when they rally into regions of logical resistance such as a 50-day or 200-day moving average. Right now most of my candidates need to rally into resistance, a few are at possible shorting places right now.

Here is my short side list:
ARUN
CRM
CSTR
FFIV
CTRP
GOOG
LVS
SINA
TEVA
TZOO
VMW

Some other I have but not as ready:
BEXP
CXO
EBIX
F
FNSR
NOG
OPEN
SNDK
TTM
USG
V
BIDU