As Dick Diamond (indextraderblog.com) says now, “I think the market is running on fumes now and a sharp 20 point selloff [S&P 500] is right ahead of us. I enjoy trading both sides of the market but for right now my only choices are short or flat.”
I could not agree more. Dick is a trading genius.
Still, keep in mind that shorting is a counter-trend trade and therefore is risky. Besides, we are not always right, you know. Nobody is right more than 60%-80% of the time–max.
So, let’s not lose our heads shorting here. Enter smart stops and be ready to TRADE the market.
The market gets you when you get too opinionated.
