Hi Mishbear,
Aligning yourself with overall market trends is prudent, IMHO. However, given the market's proclivity to surprise, and its seeming delight in so doing, I think it wise to spread your bets some. So, I very rarely am completely long or completely short. Usually, even when the trend overall is bullish, I'll have one short position in my back pocket, and when the market's going to hell, I'll have a long position or two in my back pocket also.
So, the shorts might be working very well now, but there will come a day when they don't. I like to be prepared for such days as best I can. Don't like being caught flat-footed when I can avoid it.
Don't know exactly how much short exposure you have, but it sounds like it's probably a good idea to systematically begin lightening up on it. After all, it is very rare that the market continues a trend unabated in any one direction for any extended period of time. There are always consolidations, corrections, countertrend and relief rallies, of variable durations.
JMVHO..........
Walkingshadow |
