Can you actually be short on the market?

It makes complete sense to bet against the market right now. A rally from "nowhere", completely uncertain economic direction, and some sectors glowing red hot (that biotech and financial rally, my oh my).

At the same time, why would you short anything? The market seems to be rather volatile and unpredictable (see all "professionals" right before the election), Trump's policies could decrease all sorts of regulations and expand business (at least in the short term).

As a third option... do nothing, sit back, and drink a beer. For now.

 

sell covered calls on spy, do something with the income

 

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Why would you short anything?! You can bet on either player or banker instead, and it provides very instant result ! what's more? No need to do technical/fundamental analysis

 

Through end of the year or through the end of the minute you playing your method, not the market.

 

I agree market is indeed unpredictable. We need to be a smart! However, if If the price drops, and the market is in a downturn, you can still make a difference and make a profit.

 

" and some sectors glowing red hot...that biotech and financial rally, my oh my..."

Actually, biotech (XBI / IBB) is around the same level it was at two months ago. So on a long-term view, it hasn't changed that much. Assets aren't always bought and sold because the trader thinks they will increase or decrease or are necessarily bullish or bearish...sometimes traders are forced to buy when they really don't want to, but get trapped in a bad position (short squeeze)...I think that's what is happening. But I think the run will last longer (for biotech and financials) because perception is that dems don't like biotech and financials. So the risk of them damaging those two sectors got reduced overnight for at least next two years...that's a big development.

 

Buy until 2225-2250 then start thinking about shorting. Markets never dump "because they should." They need maximum bag holders first.

 

You are right, but there were heavy volumes yesterday and today in banks, healthcare and biotech... You got already lots of bag holders. Beware, that smells bull trap !

CM

 

This week the #1 force affecting the markets is the election.

If you're willing and able to analyze the market response to the various political forces associated with the vote, then make a play. As @Robert Morse said, it's almost like making an earnings play.

With the markets flying around following the election results, a technical volatility play might make sense.

I'm not so much into politics, so I pulled all my money out this week. I'm going to buy a beer and a hot dog, sit in the bleachers, and watch the action on this one.

 

Make sure to drink a Corona.