Spanking shorts–as we were saying…

Posted on Apr 23, 2011 by in Letters

If a 190 point day doesn't make short queasy nothing will.  Let us specify how we feel about shorting.  We love it.  But, dear readers and students, shorting a roaring bull market is foolish in the extreme.  Fighting the trend is for gamblers, not traders.  Sometimes you make a quick hit.  Most of the time you get hit.  Don't do it.  Wednesday and Thursday were buy signals in the Dow, and stocks in general.  In the Dow the old high was penetrated.  Balance that against the SPX not yet having penetrated.  But after the baying of the pundits (market overbought, market going to tank, market to market to market a fat pig...) seeing the market administer a lesson in black and white, confirming what we have been saying, was refreshing.

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