New Featured Strategy; the Bull vs Bear Play of the Week.
Ladies and gentlemen, for your viewing pleasure I’m announcing a new strategy that I will be employing at this site to exploit the bias in a ratio chart for profit, no matter what the broader market direction. What’s a ratio chart? It’s a chart that reflects the performance of one stock when directly compared to another. Examples of ratio charts appear below (PLAY vs EFA and EFA vs PLAY).
For this new feature strategy I will be taking 1 technically strong stock and matching it against 1 technically weak stock. The former will be taken long, the latter will be taken short. I’ll be limiting downside risk to -4% on the average and will target on a discretionary basis according to my read on such things as broader market bias and degree of strength/weakness in each chart.
I will likely be declaring a new Bull vs Bear port each weekend, but may announce a new one midweek if I see a good opportunity.
The goal and purpose of this featured play is to prove that one can profit from good charting no matter what the broader market is doing, while benefit from hedging, and not taking huge risks to do it.
The first Bull vs Bear play will be the above example EFA vs PLAY. The next post will include charts and portfolio details and screenshots.