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.
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.
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