All Conditions for a Short Are in PlaceIt’s good to have the weekend to think everything through and make a decision calmly.
Shorting a rising market is usually a bad idea — I’ve tried before, and it’s only natural that my stop losses got hit.
On Friday, I was watching the market. Without going deep into the political background — I’m sure you’ve read the same things — I’ll sum it up in one word: negative.
To this, we can add overall overheating.
The way the market sold off that day doesn’t look like the end of the decline — although, of course, anything can happen. I believe that right now is the perfect moment to open a short position on the S&P 500 at the market open .
The stop will be wide — not pleasant, of course, if it gets hit again — but I feel that all conditions have aligned for a short setup.
My target is 640 — a strong resistance level, still about 2% away. I’ll be watching closely around that zone.
A move below 640 will open the path toward 595–605 , where I plan to start closing positions — possibly even earlier, depending on how price reacts to that key 640 level.
There are too many long positions in the market now; so far, we’ve only seen margin positions being liquidated. I think Monday might start with closing out long positions.
Either way, we’ll see at the open — but for now, I’ve outlined my plan and I intend to stick to it.
