Short Selling for the Long Term : How a Combination of Short and Long Positions Leads to Investing Success

Find a method to evaluate stocks-- and build a record of impressive returns Short Selling for the Long Term describes the methods used by Joseph Parnes, President of Technomart, to obtain consistent returns in the stock market. Most investors fail to exceed the returns represented by the Standard and Poor’s Stock Index, but Parnes often does using his investment philosophy. This book outlines his method of stock assessment, providing an understandable formula. If the formula tells a reader to buy a stock, then, as explained, there is a significant chance that stock will go up. If the formula tells a reader to short a stock, then the book shows how there is a significant chance that the stock will go down. Parnes advocates the use of short selling as a long-term strategy in combination with long positions, so advisors and individual investors alike can profit in both rising and falling markets. While most investing books focus on how to make money over the long term in a rising markets, Parnes's focus on short selling as a way of capturing volatility sets this book apart from the crowd. He offers insights into the difference between option trading and shorting which make his system useful in both type of markets. • Profit in a bear market • Borrow the stock you want to bet against • Sell borrowed shares • Learn the secrets of long-term short selling strategy • Buy shares back and close by delivering at the new, lower price Short Selling for the Long Term is essential reading for investment advisors, fund managers, and individual investors. Cover Title Page Copyright Contents Preface Chapter 1 Investment Philosophy Chapter 2 The Bank of England Lecture The Presentation Chapter 3 Portfolio Management—General Principles My Asset Allocation of a Portfolio Chapter 4 Explanation of the Use of the 50-Day Moving Average and 200-Day Moving Average Staying Above the 50-Day Moving Average The Golden Cross Staying Between the Parallel Tracks The Double Dip The Death Cross The Support Line The Resistance Line Chapter 5 The Theory Behind the “Parnes Parameters”: Using Pattern Recognition, Retrospective Analysis, and Bayesian Analytics Notes Chapter 6 Variables to Consider for the Parnes Parameters Fundamentals: Getting Down to Basics Assessments Using Technicals External Factors Chapter 7 Shorting for the Long Term Case Studies for Long Positions Long Position Stocks Large Portfolios Rationale for Buying and Holding Apple Retrospective Analysis versus Backtesting Case Study Method Amazon—An Example of a Long Purchase Held for 18 Years (This Is Not a Recommendation to Buy or Sell or Short) Amazon—Using the Evaluation Parameters Assessment of Amazon Using Fundamentals Assessments Using Technicals Assessment of Amazon Using Technicals at the Time I Recommended Purchase Assessment of Amazon Using External Factors Chapter 8 A Case Study for a Stock I Shorted for the Long Term—Chipotle Case Presentation (This is not a recommendation to buy, sell, short, or cover the short) Case Study for Shorting a Stock for the Long Term Chipotle—An Example of a Short Held for Two Years Fundamentals Technical Picture Evaluating Chipotle Assessment of Chipotle Using Fundamentals (I recommended shorting in 2015) Assessments Using Technicals Assessment of Chipotle Using Technicals at the Time I Recommended Purchase Assessment of Chipotle Using External Factors Interpretation of the Parnes Parameters Chapter 9 Case Studies for Integrating Shorts for the Long Term with Longs Principles of Shorting for the Long Term The Use of Long-Term Shorts to Increase the Value of Long-Term Positions Multiple Shorts Methods Used by Other Investors and Traders Hypothetical Example of Shorting for the Long Term Notes Chapter 10 Modern Trader Charts ISRG (An Intuitive Surgical Short, Modern Trader, #529, February 2017, p. 12) Fundamental Picture Technical Picture BHP Billiton (The BHP Bottom Isn’t Near, Modern Trader, June 2016, #521, p. 13). Fundamental Picture Technical Picture BHP Billiton (Iron Ore Bust, Modern Trader, December 2017, #538, p. 15) Technical Picture Six Examples Where the Evaluation of Both Fundamentals and Technicals Warranted Shorts General Electric (GE) (submitted as Short Burn?, Modern Trader, #539, January 2018) IBM (Buffett Bailed on IBM: Is Watson Next? Modern Trader, June 2018, #544, p. 14) Advance Auto Parts (Advance Auto: Downshifting, Modern Trader, #537, November 2017, p. 15) Core Labs (Core Fundamentals & Technicals Point Lower, Modern Trader, #519, April 2016, p. 12) Core Labs (Core Labs Is Out of Gas, Modern Trader, #533, June 2017, pp. 11–12) Ralph Lauren (Ralph Lauren: More Style Than Substance, Modern Trader, #523, August 2016, p. 14) Ralph Lauren (This Retailer Is Out of Fashion, Modern Trader, #531, April 2017, p. 13) Polaris Industries (Recalling Polaris Stock, Modern Trader, #527, December 2016, p. 14) SINA (Shorting SINA: China’s Twitter, Modern Trader, #525, October 2016, p. 13) Stamps.com lnc. (Stamps Stock: Return to Sender, Modern Trader, #540, February 2018 p. 15) Goldman Sachs (Goldman Will Rebound, Modern Trader, #520, May 2016, p. 10) Goldman Sachs (GS: Anticipating the Swamp Bump, Modern Trader, #534, August 2017, p. 14) Fiat (Fiat Chrysler in Low Drive, Modern Trader, #524, September 2016, p. 13) Chipotle (Short Sell: Tainted Grub, Modern Trader, #518, March 2016, p. 12) Chipotle (Chipotle: New Health Outbreak, New Short, Modern Trader, #536, October 2017, pp. 14–15) Technical Picture American Express (AXP: Don’t Leave Home Short, Modern Trader, #532, May 2017, p. 12) Technical Picture Amazon (Yes: Amazon Is Different, Modern Trader, #536, October 2017, p. 16) Long Fangs, Short Fangs (Long Fangs, Modern Trader, #522, July 2016, p. 12) Index EULA "This book describes the methods used by Joseph Parnes, President of Technomart, to obtain consistent returns in the stock market. Most investors fail to exceed the returns represented by the Standard and Poor's Stock Index, but Parnes often does using his investment philosophy. This book outlines his method of stock assessment, providing an understandable formula. If the formula tells a reader to buy a stock, then, as explained, there is a significant chance that stock will go up. If the formula tells a reader to short a stock, then the book shows how there is a significant chance that the stock will go down"-- Provided by publisher