The MSCI Emerging Market index can fall all the way to 1100 and still be in an uptrend. Thus, I will use that approximate price target as a trigger point to either add more or cover, though I may do either before then.
If the position moves against me, I'll be quick to cover, even selling tomorrow if need be.
Shorting frothy markets is very dangerous. Do not do so based on what you read on this blog. Do so based on your own research and your own risk/reward profile. Shorting frothy markets can lead to large losses in a short period of time.
Disclosure: The author owns EEV.