On October 25, we summarized our basic strategy for finding the best entry points for short selling stocks and ETFs. It was the first time we had discussed our swing trading strategy for the short side of the market in quite a while because our market timing model only shifted to a new "sell" signal on October 12. Since the first and most important element of our rule-based trading system is to trade in the same direction of the dominant market trend, we simply were not interested in looking for short selling candidates when the broad market was previously in a steady uptrend.
Now, we follow-up our previous October 25 post with a short (3-minute) trading strategy video that shows you how to easily and instantly find the best stocks that meet our strict technical criteria as short selling candidates (ie. weak stocks bouncing into resistance, after breaking down below obvious levels of support). Click on the link below to view the video on our trading blog: