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Short-Selling with the O'Neil Disciples: Turn to the Dark Side of Trading

Book Description

Leave the old paradigm behind and start safeguarding your portfolio

Short Selling with the O'Neil Disciples is a guide to optimizing investment performance by employing the unique strategies put forth by William O'Neil. The authors traded these strategies with real money, then refined them to reflect changing markets and conditions to arrive at a globally-relevant short-selling strategy that helps investors realize maximum profit. Readers will learn how short selling recognizes the life-cycle paradigm arising from an economic system that thrives on 'creative destruction,' and has been mischaracterized as an evil enterprise when it is simply a single component in smart investing and money management. This informative guide describes the crucial methods that preserve gains and offset declines in other stocks that make up a portfolio with more of an intermediate- to long-term investment horizon, and how to profit outright when markets begin to decline.

Short-selling is the act of identifying a change of trend in a stock from up to down, and seeking to profit from that change by riding the stock to the downside by selling the stock while not actually owning it, with the idea of buying the stock back later at a lower price. This book describes the methods that make short-selling work in today's markets, with expert advice for optimal practice.

  • Learn the six basic rues of short-selling

  • Find opportunities on both the long and short sides of stocks

  • Practice refined methods that make short-selling smarter

  • Examine case studies that profitably embody these practices

  • Investors able to climb out of the pessimistic, conspiratorial frame of mind that fixates on the negative will find that short selling can serve as a practical safeguard that will protect the rest of their portfolio. With clear guidance toward the techniques relevant in today's markets, Short Selling with the O'Neil Disciples is an essential read.

    Table of Contents

    1. Cover Page
    2. Title Page
    3. Copyright
    4. Dedication
    5. CONTENTS
    6. PREFACE
    7. ACKNOWLEDGMENTS
    8. CHAPTER 1: Introduction to Short-Selling
      1. How Not to Sell Stocks Short
    9. CHAPTER 2: Short-Selling Essentials
    10. CHAPTER 3: Short-Selling Set-Ups: Chart Patterns for the Dark Side
      1. The Head-and-Shoulders Top
      2. The Late-Stage Failed-Base
      3. The Punchbowl of Death
      4. Using Livermore's “Century Mark” Rule Together With LSFB and POD Short-Sale Set-Ups
      5. Summary
    11. CHAPTER 4: In and Out: The Mechanics of Short-Selling
      1. Entry Points
      2. Exit Points
      3. Applying Entry and Exit Point Methods in Real Time
      4. Determining Entry Points for POD Short-Sale Set-ups
      5. Summary
    12. CHAPTER 5: Case Study #1: Apple (AAPL) in 2012–2013
      1. Summary
    13. CHAPTER 6: Case Study #2: Netflix (NFLX) in 2011
      1. Summary
    14. CHAPTER 7: Case Study #3: Keurig Green Mountain (GMCR) in 2011
      1. Summary
    15. CHAPTER 8: Case Study #4: 3D Systems (DDD) in 2014
      1. Summary
    16. CHAPTER 9: Case Study #5: Molycorp (MCP) in 2011
      1. Summary
    17. CHAPTER 10: Templates of Doom: A Short-Selling Model Book
      1. Taser International (TASR) 2004–2005
      2. eBay (EBAY) 2004
      3. Omnivision Technologies (OVTI) 2004
      4. Deckers Outdoor (DECK) 2005
      5. Monster Beverage (MNST) 2012
      6. CBRE Group (CBG) 2007
      7. Precision Castparts (PCP) 2007
      8. VMware (VMW) 2007
      9. Baidu (BIDU) 2008
      10. Blackberry Limited (BBRY) 2008
      11. Crocs (CROX) 2007
      12. First Solar (FSLR) 2008
      13. Sunpower (SPWR) 2008
      14. JA Solar (JASO) 2008
      15. U.S. Steel (X) 2008
      16. Steel Dynamics (STLD) 2008
      17. Freeport McMoRan Copper & Gold (FCX)
      18. Peabody Energy (BTU) 2008
      19. Consolidated Energy (CNX) 2008
      20. Cliffs Natural Resources (CLF) 2008
      21. Rio Tinto Plc (RIO) 2008
      22. Union Pacific (UNP) 2008
      23. CSX Corporation (CSX) 2008
      24. Diana Shipping (DSX) 2008
      25. Dryships (DRYS) 2008
      26. Potash Saskatchewan (POT) 2008
      27. Agrium (AGU) 2008
      28. CF Industries (CF) 2008
      29. Mosaic Company (MOS) 2008
      30. Goldman Sachs (GS) 2008
      31. Apple (AAPL) 2008
      32. Priceline.com (PCLN) 2008
      33. Amazon.com (AMZN) 2008
      34. Salesforce.com (CRM) 2008
      35. Molycorp (MCP) 2010
      36. Skechers USA (SKX) 2010
      37. Blackberry Limited (BBRY) 2011
      38. Rovi Corp. (ROVI) 2011
      39. Akamai Technologies (AKAM) 2011
      40. F5 Networks (FFIV) 2011
      41. Netflix (NFLX) 2011
      42. Keurig Green Mountain (GMCR) 2011
      43. Omnivision Technologies (OVTI) 2011
      44. Riverbed Technology (RVBD) 2011
      45. Jinko Solar (JKS) 2011
      46. First Solar (FSLR) 2011
      47. NXP Semiconductor (NXPI) 2011
      48. Aruba Networks (ARUN) 2011
      49. Tata Motors (TTM) 2011
      50. Intermune (ITMN) 2011
      51. Deckers Outdoor (DECK) 2011
      52. Rockwood Holdings (ROC) 2011
      53. Illumina (ILMN) 2011
      54. Arch Coal (ACI) 2011
      55. Peabody Energy (BTU) 2011
      56. Walter Energy (WLT) 2011
      57. Jones Long LaSalle (JLL) 2011
      58. Kraton Performance Poly (KRA) 2011
      59. Finisar (FNSR) 2011
      60. Stratasys (SSYS) 2011
      61. Sina Corp. (SINA) 2011
      62. Sohu.com (SOHU) 2011
      63. Ctrip.com (CTRP) 2011
      64. United Rentals (URI) 2011
      65. Youko Tuduo (YOKU) 2011
      66. Goldman Sachs (GS) 2011
      67. Mellanox Technologies (MLNX) 2012
      68. Broadvision (BVSN) 2012
      69. Vivus (VVUS) 2012
      70. Chipotle Mexican Grill (CMG) 2012
      71. Select Comfort (SCSS) 2012
      72. Apple (AAPL) 2012
      73. Cirrus Logic (CRUS) 2012
      74. Lululemon Athletica (LULU) 2013
      75. LinkedIn (LNKD) 2013
      76. Nationstar Mortgage Holdings (NSM) 2013
      77. Ocwen Financial (OCN) 2013
      78. Angie's List (ANGI) 2013
      79. Rackspace Holdings (RAX) 2013
      80. Solar Winds (SWI) 2013
      81. Ruckus Wireless (RKUS) 2013
      82. Intuitive Surgical (ISRG) 2013
      83. Cree (CREE) 2014
      84. 3D Systems (DDD) 2014
      85. Stratasys (SSYS) 2014
      86. Exone Company (XONE) 2014
      87. Lumber Liquidators (LL) 2014
      88. Pandora Media (P) 2014
      89. Amazon.com (AMZN) 2014
      90. Netflix (NFLX) 2014
    18. ABOUT THE AUTHORS
    19. INDEX