The Trend Has Switched… Get Short

So what side are you?  Well, it was getting real frustrating shorting this market last week, but it’s nice to finally see it break down.  This is my game.  Yes, we will get a few rallies here and there as longs try to buy up these dips.  But you have to play it smart.  Please! At least go 50/50 in your portfolio, although it is probably more proper to go 70 short 30 long by the end of July.  I don’t know why, but a lot of my trading buddies here have a hard time going short.  What’s the big deal?  Just flip the chart upside down.  Good becomes bad, bad becomes good.  Get aggressive when you’re feeling evil, get conservative when you’re feeling happy.  Everything just flips.  The only real difference is that stocks move faster in downtrends.  You will see big moves, like +/-10% moves in a single day.  Can you stomach that?  Learn to average in and you will, that’s how you can beat the market on the downside. 

ALL my shorts that I recommended over the past month are on fire.  Either that, or I am getting much more confident that they will break down.  My trading analogy for the day is this:  Dark Ages.  The bulls are holding fort behind large walls.  The bears are coming in with their battering rams.  Every now and then they will get pushed back, but every bang on the door means the wall is getting weaker.  We will get a huge drop in this market, it’s just a matter of when… the hand writing is on the wall (unemployment, countries are broke, China’s market at year lows, Europe broke, banks in debt).   Do something.