Not the market you want to really be shorting right now.
The window of opportunity for the bears to short this market lower passed, when SPX moved out of the 1950's yesterday. Now it has to be presumed that this market bounce is much more than just a simple dead cat bounce, but instead, a resumption of the uptrend.
That's painful for the bears to accept and will take them more days than what they should allow to come to the realization that their short positions aren't going to go their way.
That doesn't mean that the market can suddenly drop on us again like it did on the last day of July, but what it does mean that you need to wait for it to happen. Front running a market move in the opposite direction of this bounce is an exercise in insanity. Don't be part of it. Many will try, and have tried, and it comes with dire consequences.
So until this market SHOWS YOU that it is done with this move higher, don't be shorting the market.
That means with my bearish list of trade setups (yes I always have one in my back pocket), you should only keep this list handy and act upon it, if the market starts to sell-off once again. Until then, go long or stay neutral, but avoid being short.
Here's the bearish list of trade setups:
Which stock should you buy in your very next trade?
With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities.
In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.
With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.