The view on shorting US stocks hasn't changed. However, I first stopped out of my short position on Apple $AAPL at the open. Currently, about 1/3 of my position is short, and 2/3 is in cash.
Let me explain why I'm shorting: First, I'm not a day trader; I trade in swings. I believe this swing started from last week's FOMC meeting at 7:30, when the closing price was 6360, and there hasn't been much change since then. In other words, the drop and rise this week are just 'fluctuations' to me, not a 'swing,' and my observation of the swing hasn't changed, so my trading hasn't changed either. (2)
Secondly, since the FOMC meeting last week at 730, I have gradually increased my "short" positions. Another reason is that the current implied volatility (IV) is decreasing, which is a suitable time to "build a position," so I took the opportunity to do so... Overall, I feel pretty okay about the current situation. Everything is normal.
Third, I study the US stock market every day and can basically sense the movements of capital. Recently, the bullish funds have actually been a bit "tired". For example, the reason I opened a short position on $w yesterday is that it is a typical momentum stock. The decline of momentum stocks often means that the US stock market is "one step ahead"... In short, I am not "predicting", but rather "observing". My observation suggests that after 730, the market's decline and rise is "volatility", while the "wave" trend is likely to be downward. (end)
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