Skeptical Ben

What to Short When the Rally Dies

This rally has shrugged off expected bad news. However, now that people have made some money back, one scary event will start downward momentum, a rush to the exits.


On Apr 17 11:09 PM bricki wrote:

> Yes there is an opportunity to make money here on the down side;
> stocks go up and down, not just up. And they have been going up a
> lot recently. Way more than can be justified by any fundamentals.
> S&P 500 P/E of 30 is kind of scary especially when you think
> of the overburden on economic growth that we are looking at for the
> next years.
>
> I might wait a bit though - it seems to me this rally has shrugged
> off a lot of bad news. It doesn't quite look tired enough for me
> to make significant downside bets yet.
>
> Sideways with volatility is going to be the order of battle for the
> remainder of this year - so girls and boys gear your strategy to
> make money in this sort of environment.
>