Shorting can be a big “YES”, but it has to be done at the right time!

Before I dare to short the markets, I would wait to see when the down trend and the sell-off is actually established. This market is driven by stimulus and large volumes of money being pumped in. The resource industries are in historic demand.

In actual fact the overall markets have not been extremely strong in gain over the last month or so, but they have been holding up, and are showing signs where they can still keep going some more.

One thing I would not rule out is the strong possibility of a very large profit taking. The bigger something like this gets, the harder it can fall back!

Shorting can be a big “YES”, but it has to be done at the right time! Maybe in a month, maybe in a few months, maybe in less than a year? We don’t know at this time!

I remember five months ago some people were saying, “Better short the markets; they’re much too high, and they’re coming down now! DOW 5000 and maybe 3000!” These comments were on many news groups, blogs, and some news articles.

Anyone who shorted the markets five months ago must have lost their behind, and including their underwear along with it”.

As I am saying, wait for the right indicators, and then short with great caution!

Jerry G.

Related Posts:

• The empty big-box retail stores
• Diminishing returns from stimulus demand forward programs. At U6 unemployment of 16.5% in bs BLS and closer to 20% in reality, a tax credit is only going to stimulate so much demand.
• The Crash of 2010: The Greatest Depression is Coming!
• The Nikkei resembles the Dow from 1929 to 1930 .
• Obama spoke about 3 million plus jobs only to pass the stimulus.

Leave a comment