While today was a welcome relief from the consistent pummeling of the last week or so, the rally had all the hallmarks of a snap-back from oversold conditions. Volume was less than average and my short-term Market Dissector 5 Day Moving Average Indicator has issued a short signal for Thursday’s open. As the market is in a confirmed downtrend, this snap-back rally makes an excellent opportunity to begin initiating new short positions. A quick word of warning: As I noted earlier today, these snap-back rallys can be very powerful and may last surprisingly long. I would add shorts incrementally, rather than all at once.
All that being said, the following picks were identified by an algorithm that produces short setups with a positive expectancy. Keep in mind, the reason they are called “shorts” is because you only hold them for a short time. Most of them will trigger an exit signal on the next down day.
All of the symbols are linked to a chart, for your viewing convenience.
I personally don’t like to get short too much stress of potential margin call, should I just pick an inverse ETF and add incrementally?
derrr, it would depend on what inverse ETF you were looking at. Also, with the inverses, it is even MORE important to not hold them long. They are for trading, only.