I had a post on
How To Short The Market the other day. The truth is, you're much better off shorting individual stocks. It's more scary than shorting the market but you have better odds. As the post mentioned, there are a slew of reasons why you shouldn't short the market but some of these reasons are not applicable for individual stocks. Among other things, individual stocks are not subject to "sector rotation" where the market is kept afloat in overbought conditions by hyping different sectors in turn. And the president doesn't care about individual stocks, he only cares about the overall market.
SODA had earnings announcement this morning, resulting a red gap and subsequent run, pretty much erased the last 4 days' stellar run. This type of action, and even recent past's "reversion to the mean" (which traders like me love) up and down actions hardly exist in the market chart a la SPY.
Just don't short AAPL!!!
Morgan Stanley Is The Rosetta Brick - Part 2
ReplyDeletehttp://chartistfriendfrompittsburgh.blogspot.com/2012/02/morgan-stanley-is-rosetta-brick-part-2.html