About 90% of these stocks are too oversold to short right now, but wait… 

The stock market is insanely oversold right now. Can it go lower? Sure, but that doesn’t mean the risk justifies the reward. Right now it doesn’t The market is at historically oversold levels. I’m talking about being on par with October 1987 and the 2008 sell-off. Crazy lows like that, and they saw significant bounces – like mind blowing bounces – pretty soon thereafter. 

Also, you’ll see a number of these stocks, like Norwegian Cruise Line (NCL), for instance, that have taken some hard and nasty hits. You don’t short them now that the initial move is near completion, if not already. Instead you wait for the bounce into a resistance level that sees price fall back apart at. Then you start to get short at, and look for a new lower-low on the chart. 

A lot of people are still shorting every market rip and they are making money from it, but at some point the risk outweighs the reward, and it isn’t worth it because eventually, you’ll get yourself a higher-high and that gets brutal for those still holding shorts that started near the bottom of the sell-off. 

Here’s the bearish watch-list for this week: