Ryan Mallory, of SharePlanner.com, outlines how shorting the market recently (once again) proved momentarily profitable and ultimately wound up a losing play. He also shares where that leaves his focus moving forward, especially since many have already begun to head to the beach for the Memorial Day weekend…at least mentally.
With the SPX above 2120 now and the huge breakout on Thursday, to say that this market is anything but bullish would be pure rubbish.
And once again, shorting the market has proved to be momentarily profitable (if that) and ultimately a losing play. So that leaves me with a focus completely on the long side of the trade. I'm not looking to short anything and my trades are going to come primarily from the list below.
As it stands now, I am entirely long, with 70% of my portfolio still in cash ready to be put to good use and if the market holds up through the end of the week, there will no doubt be some tweaking of the portfolio and could find myself up to 60% long and 40% in cash.
With that said, as we get closer to the Memorial Day weekend, I figure as much people will be starting to divert their attention to the beaches and working on their summer tans. So don't be surprised if the volume fades off as the week progresses.
Here's my bullish trade setups I am watching.
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By Ryan Mallory, Founder, SharePlanner.com
