This selloff will have to lead to a rally. If we do not get a follow-through day and instead start failing at the moving averages, then and ONLY then will it be safe to start shorting as we will know the uptrend is done for now. I missed the banks because the market was still in an uptrend. I should have taken some short, but I did not out of discipline. Trust me, when we really rollover, I will be making money on shorts. Trust me. I have 2000-2002 and the downturns in 2004, 2005 and 2006 in my free blog at Mauitrader to prove it.
If this was a bear market (which it almost is–the next rally will give us the answer), AIG SONO MET and AVY would make good shorts.
AIG
SONO
MET
AVY
