I saw a training school in Singapore calling to short SMISCI and HK recently. They covered their losing short position and suggest people to look at shorting again. I disagree with this view.
In fact our strategy for July have been perfectly right. Do you remember we asking everybody to exit position before the jobs report as we think it might miss forecast. After that we tell everybody to watch for next 3 days to know the direction of market. It actually falls for 4 straight days.
We told everyone to anticipate a reversal. We mentioned that one way to know the reversal is a triple digit day which will bring confidence back in July.
Check out our article stating all this below:
After last Friday triple digit rebound, this week stock market continues its climb.
We mentioned yesterday that July will be a month on QE3 expectation and a dissapointment if Big Ben fails to act. Today, the market tilts again to think that there might be QE3 afterall. Ha, like what we said, July is about QE expectations.
I suggest do not short any positions now, especially the index futures. We feel it may be like throwing your money into drain. If fact, we expect July won't be bad. The US earnings reports have been so far quite ok, not as bad as feared.