Why do some experienced market experts think this is not the time to shorting stocks?
Answers
419 points
TeachMeMore answered 8 months ago …
If you're referring to the gang of talking heads on CNBC then I wouldn't be calling ANY of those folks "market experts" - they're financial entertainment, plain and simple. Furthermore, what they're probably saying is that we're in the middle of a short term rally, it's tough to say which direction the market is going in overall (they don't want to look silly if the market continues to rise for another few weeks). And I guess that is the real problem.
Those guys are married to TV ratings, not making money for folks.
4085 points
EthanR answered 8 months ago …
There are always stocks to be shorted, no matter what the general market is doing. But you must know which are the weakest sectors and stocks within those sectors. It makes no sense to short against strong stocks in strong sectors.
Also, if you use technical analysis, it is fairly easy to find short candidates, no matter what the general market is doing. I like to short stocks when they are very extended (overbought) and the indicators, such as RSI, Stochastics, and MACD begin to turn down.
