As a «sell» signal matures and becomes more confirmed by time and price, short selling of weak stocks also becomes part of the trading plan, but for now it is still too early to enter new short positions for momentum swing trading. (morpheustrading.com)
When the stock market is already in a confirmed downtrend and stocks start bouncing off their lows, it may be tempting to start initiating new short positions in stocks and ETFs with the most relative weakness. (morpheustrading.com)
Although not shown on the chart above, we subsequently also began entering new short positions on April 20, just in time to catch the Nasdaq's big breakdown below key support on April 23 (the following trading day). (morpheustrading.com)