sporthunter's Blog : Time to short the market (SH)

I am usually very optimistic when it comes to my trading style, but I can also see when its time to change direction and acknowledge the obvious. On 6/28/09 I entered into a short position (SH) Short Proshares S&P 500 based on the belief that the market will correct itself by 15% - 20%. I believe this is a sound decision for the following reasons: Momentum, oil prices, and pending policy changes (Tax Increases).

I also have soldoff a large portion of my long positions and went heavy into cash (75%). This not only supports my belief that the market will pull back as we saw Thursday, but will allow me the opportunity to buy short term rallies (1 week or less) and take profits of quick moves in certain stocks. As you all know I love my "Little Gem" (CKSW) I feel I can enter and exit this stock on 60 cent move with no problem, taking little gains, even while the market pulls back. Other stocks I feel will produce profits during this time are TRA and AGU, along with TEVA. Happy Trading.