This is no doubt a tough market to trade. Stocks seem to be
levitating over a pit of ravenous bears who can't seem to get the upper
hand (at least not yet).
On average, taking big short positions has been a losing proposition
for investors, as many stocks have managed to climb higher in the face
of uncertainly. If you are going to go short, there better be a darn
good reason to do so.
Even though momentum stocks may look overpriced, it's safer to use
less volatile stocks in this market environment. Traders should also use
stop-losses and have realistic expectations. (more)
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