That was a horrible trade. I finally took the loss yesterday in the low 2820s after doubling down at 2850 last week. It was a painful short, and it is a relief to get out of it at a somewhat decent level to regroup and wait for a better area to short. I haven't seen a stock market trade like this so I don't mind losing in such a rare type of market. If I had lost a similar amount in a normal market, I would be much more upset. This is a manic stock market, so past patterns don't work as well.
I see some strong support at 2800 area but I will pass on the longs. I don't like getting long markets where retail is so heavily involved, they could panic sell this market into some deep, deep pullbacks. Also, Bond yields keep rising, which is not a good sign for stocks.
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Long time reader, first time poster. Greatly appreciate all your thoughts. What trading instrument do you use to short the S&P? I share a similar opinion about the market, but not sure how to go about doing it. Apologies if you have covered this already. Thanks!
I short S&P by shorting E-mini S&P 500 futures (ES). That is the easiest and most liquid way to short S&P, providing the most leverage.
Thanks! Much appreciated! Any other trading strategies you would recommend I consider as well?
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