Thinking of giving up shorting individual names and shorting S&P instead.

Discussion in 'Trading' started by DrEvil, May 4, 2016.

  1. Very true. It's just difficult to buy when you know the market has been uptrending for seven years running. I'm watching the retest 2,134 S&P all time high to push and then roll before shorting the index via SPY put options. The 1,800 is key support. The problem is once it drops below the 1,800 level, the chart will look like a perfect short...in hindsight, lol!

    Another way to play it is just wait for the drop (whenever that is), and buy it. Over the longer term chart, the market trends up more than it trends down, so longs will win over time.

    The problem with shorting individual names is you need to know the catalyst for why it's going to drop, and that usually relates to an earnings shortfall or negative news, which means you have to short it before it has a gap down. If you're late, then you risk a short squeeze, just like what happened to TSLA a few years back.
     
    #11     May 4, 2016