Shorting stocks is relevant again!

I didn’t post a short watch-list last week due to the shortened holiday week, but man, I wish I would have now. This market has gone to trash incredibly fast, but personally, I don’t think people are respecting the downside to this market. I have had so many people call and ask me “I want to buy”, “Are you buying?”, “You gotta buy when others are selling!”. 

While I appreciate their excitement in the midst of a sell-off, it doesn’t tell me that people are really worked up about this sell-off.

If you are wanting to take advantage of a big market sell-off and discounted stock prices, it has to come at a time, where you, yourself, feels like a deranged lunatic for doing so. Where it bothers your stomach, and damn near gives you an ulcer by doing so. That’s the kind of fear people should buy into. 

We are no where near that level – the only thing that has happened is the breaking of some short-term support levels. Anything long-term remains intact. 

My short exposure has increased, not because I have shorted anything else today, but because I have been knocked out of one of my last long positions. Overall though, I’m profitable in the Trading Block on a day where SPX is approaching 2% in losses. 

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