When to stop shorting US stocks
The risk of shorting US stock ETFs is minimal until several important signs of the end of the bear market appear. Sometimes the buying time is inappropriate, and it will hold on for a while, but there is a possibility that the profit will stop in the end. However, once the indicator for the end of the bear market appears, and the direction of operation has not changed, it may become deeper and deeper, and eventually the blood costs will be lost.
1. The Fed announced that it will begin cutting interest rates or restarting QE. As soon as this news appears, all short positions need to be sold immediately.
2. The Fed announced that it would stop raising interest rates or stop QT. After this news appeared, there was a need to change the strategy, focusing on going long, followed by shorting, and going short carefully.
3. S&P fell below the 250-week line, which is likely to happen in the first half of 2023. This means that the stock price is back to the level it was seven years ago. S&P fell below the 250-week line, indicating that the bear market was about halfway through. The bear market may continue for some time, and it is likely that it will continue to reach new lows, but as time goes by, the risk of shorting is getting higher and higher. We need to change our strategy, focus on bottoming out, sell on high spells, try not to go short after selling, wait until S&P falls again, and then go to the bottom again.
4. The black swan or gray rhino incident, which had a significant impact, occurred, and caused US stocks to continue to fall sharply and continuously reach new lows. In order to reduce the risk of the entire financial system, the FED will soon introduce easing measures, which will bring about a sharp rebound in US stocks. After further ups and downs, it eventually became a reversal in the market. $Tesla(TSLA.US$ $ProShares UltraPro Short QQQ ETF(SQQQ.US$ $Direxion Daily Semiconductor Bear 3x Shares ETF(SOXS.US$
1. The Fed announced that it will begin cutting interest rates or restarting QE. As soon as this news appears, all short positions need to be sold immediately.
2. The Fed announced that it would stop raising interest rates or stop QT. After this news appeared, there was a need to change the strategy, focusing on going long, followed by shorting, and going short carefully.
3. S&P fell below the 250-week line, which is likely to happen in the first half of 2023. This means that the stock price is back to the level it was seven years ago. S&P fell below the 250-week line, indicating that the bear market was about halfway through. The bear market may continue for some time, and it is likely that it will continue to reach new lows, but as time goes by, the risk of shorting is getting higher and higher. We need to change our strategy, focus on bottoming out, sell on high spells, try not to go short after selling, wait until S&P falls again, and then go to the bottom again.
4. The black swan or gray rhino incident, which had a significant impact, occurred, and caused US stocks to continue to fall sharply and continuously reach new lows. In order to reduce the risk of the entire financial system, the FED will soon introduce easing measures, which will bring about a sharp rebound in US stocks. After further ups and downs, it eventually became a reversal in the market. $Tesla(TSLA.US$ $ProShares UltraPro Short QQQ ETF(SQQQ.US$ $Direxion Daily Semiconductor Bear 3x Shares ETF(SOXS.US$
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