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Was It Easy To Short Today?

Posted by Satuki On August - 17 - 2009

In my trading, I like to use NASDAQ or S&P 500 as a gauge for the market sentiments and then adjust the proportion of my long positions and short positions.  So it was logical to have 80-90% shorts in todays market because that was the path of the least resistance.   But was it easy to short because the market dropped hard today?  I do not think so.

 

Let’s take a look at SPY, a proxy for S&P 500.  It gaped down and stayed flat there for the entire day.  This behavior made the stocks that I was watching very whippy.  As I mentioned, whipsaws are my biggest enemy.  So I took only one short position (BTU) today, which  was not very successful.

 

Click on the images to have a better view

SPY

 

And some other stocks I watched

MEE

 

ASH


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