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Thursday, May 5, 2011

The Big Short & The Big Long

This is a basic and unrefined idea, but I think in general this will work quite nicely.

Long a basket of old tech stocks: HPQ, MSFT, GOOG, APPL, INTC, CSCO

Short a basket of new tech stocks: CRM, OPEN, LULU, TZOO, NFLX

Of course, trim the long basket where you see fit and trim the short basket where you see fit; but in aggregate I believe this would be a solid idea.

There have been some great write ups posted on the web for most (if not all) the long positions, and there have been some equally good write ups for short positions.

It would have been better to have taken this kind of position about two weeks ago, but this also means lots of the momentum going for the ridiculously price over tech stocks are probably over.

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