by Michael Shulman 03/11/08
Michael Shulman uses simple trading tactics to make solid, profitable investments in falling stocks in his ChangeWave Shorts service.
Two core sets of data drive his "short-side" recommendations -- macro data from ChangeWave Alliance surveys and other sources, and segment and micro data. Some of this micro information also comes from the surveys, as well as information found in financial and other reports, like proprietary databases and analyst reports.
The ChangeWave Alliance completes three surveys each quarter that look at the general economy and specific market segments: Consumer Spending, Corporate Sales (which includes capital spending, pricing, hiring and so on) and Corporate IT (Information Technology) Spending. These keep Michael ahead of other analysts because ChangeWave is talking to the men and women who are responsible for budgeting and/or making (or choosing not to make) the purchases.
The ChangeWave survey staff does more than 40 surveys each year of narrower market segments and/or individual companies. Segments range from semiconductors to hospitals, with equally diverse topics ranging from Linux servers to staph infections. He works closely with the staff to ferret out the truth weeks and months before Wall Street becomes aware of emerging trends.
From this data, stock picks are made. Once the biggest losers are identified, Michael picks the put options with the right combination of reasonable cost (anywhere from a few cents to a few dollars per share), ones that provide enough time for the position to work and stand to become money-doublers or even -triplers.
Stocks fall faster than they rise, so it's important to be positioned before the fall takes place in earnest -- and that's why we play the game with put options. Not only is it profitable to allocate a portion of your portfolio to the short side, but watching stocks fall has never been more fun! Click here to learn more and to make big profits on the short side today!
A quick quiz -- what are the three things you can short? Check your answers below.
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