It has become a regular occurrence for the stock market to fall apart at all-time highs. 

Once the volatility gets near that 11-13 range, and the indices are trading at their all-time highs, the market starts to feel tipsy, and the sellers swoop right in. I hate trading long over the past year when the market is sitting at its all-time highs. 

This morning had all sorts of weirdness working against it, despite the market rallying: 

  • Small caps were selling off hard
  • Breadth was deteriorating from the start
  • TICKs were weakening
  • Treasuries were rallying

join the swing trading splash zone

It simply wasn’t adding up to me, so I held on to my short position and my other position in Gold (GLD).

And right now I’m being rewarded handsomely for it. Not sure if I’ll close out my position in SPXU just yet (the long position I am using to short the market), but I want to see how ugly this market wants to get. There is a gap from 9/5 that the market looks serious about filling. 

I also love the short setup in Facebook (FB) that is unfolding. Nice bear flag there worth checking out:

short facebook stock

And if that one doesn’t interest you, then take a gander at my watch-list below – all stocks I would consider shorting this week. As always use a stop-loss, because you can also lose some big money shorting stocks too. 

Take a look at the bearish watch-list below: 

bearish swing trading watch list 9 24