Time to short the market?

[Cruzan]

Lot of stocks going down again.

[Sammy Pepys]

1. I'd say that time was probably last week....

Shorting now is probably much riskier than it would have been a week or two ago.

[bryant69]

2. I'd agree - if you are waiting till now you are probably screwed

like me.

Bryant
Check it out --> http://politicalcomment.blogspot.com

[ShortnFiery]

3. As I've mentioned before, my IRA is real safe

in Belfast! :yoiks:

But seriously, I'm not heartless for I know that a lot of good people are taking hits right now. It's too bad that we can't just target certain stocks for the crapper. :shrug:

[Cruzan]

4. Target or not here's one that just hit the crapper

SAN FRANCISCO (MarketWatch) -- As troubles continue to roil the market for subprime mortgages, New Century Financial Corp. says that it's technically in default with several lenders and is under investigation by federal regulators.
Analysts cautioned it could spell the end of the Irvine, Calif.-based company (NEW 6.28, -8.37, -57.1% ), the second-largest player in the subprime industry. New Century sahers fell $8.65, or almost 60% to $6 in early Monday trade.

Subprime mortgages are offered to home buyers who fail to meet the strictest lending standards. Lenders specializing in such loans, like New Century, rely in part on big banks known as warehouse lenders to finance their operations. These backers require that subprime lenders meet certain minimum financial targets; otherwise, they have the right to end the business relationship.

http://www.marketwatch.com/news/story/criminal-probe-covenants-add-new/story.aspx?guid=%7B40E6DF4B%2D5149%2D40FE%2DAAAC%2D7CF5491E806E%7D&siteid=yhoo&dist=yhoo

[On the Road]

5. If the Market Goes up to the Moving Averages on Weak Volume

shorting could be profitable. Given the current volatility, there's a good chance of a rebound.

The best way to do it might be to trade options and set tight stops. That means there's a good chance of taking a small loss, but that's the gamble.

Because my money's in a rollover IRA, options are prohibited. I bought a little USPIX (a short fund) early last week and a little more Friday. If the market rises to resistance, will buy more. The risk is that orders are only executed overnight and have to be in by 2PM. So if the market takes off at 3PM, you're stuck with your position for over a day, which can be a lot in a volatile market. So it has to be approached with caution.

Rallies are often long and steady. Downturns are short and nasty. I believe there's more downside, but no one knows for sure. Putting all your money on the line is only for experienced day traders.

[Cruzan]

6. Here's how the Dow ETF is looking