Shorting Stocks in an Uptrend?

I see plenty of people out there shorting and looking good right now. However, I will simply not short stocks or markets that are in uptrends but pulling back. Now, having shorted SMH & NFLX previously, I will obviously short bounces within uptrends; but not pullbacks.

SPX is in an uptrend at its SMA 200. Lose the 200 and we can talk bear. But until then it’s a lot of hysterics and… an uptrend.

Dow is down a whopping 346 points… uptrend.


NDX… uptrend.

I was compelled to release a few positions today that were bought on the mini crash (including SPY) for small gains and/or small losses because I don’t like the grind a would-be bounce is doing. But what I have left is long only (including gold stocks) and I am not even thinking of shorting. I will however, think of it if this pig bounces back to the 50 day averages or establishes downtrends.

Short of that, cash equivalents are paying out and that’s just fine. My accounts are back near the highs of the year and dividend paying cash cannot hurt that. What’s more, the day is not over and if these indexes hold the SMA 200s, we might want to allow for resumed bounce potential. Again, the SMA 50s would be ideal. Let’s see how the pig moves into the close.

Subscribe to NFTRH Premium (monthly at USD $33.50 or a 14% discounted yearly at USD $345.00) for an in-depth weekly market report, interim market updates and NFTRH+ chart and trade setup ideas, all archived/posted at the site and delivered to your inbox.

You can also keep up to date with plenty of actionable public content at by using the email form on the right sidebar and get even more by joining our free eLetter. Or follow via Twitter @BiiwiiNFTRH, StockTwits or RSS. Also check out the quality market writers at