Proshares MidCap 400 – MZZ and Proshares Ultrashort QQQ – QID

Momma always said, Don’t short a dull market. Well she’d also be correct in saying be cautious shorting a market that’s overbought. The overall market is getting toppy here. That doesn’t mean it won’t stop though. I’ve done nothing today so far, as the reward/risk just hasn’t been there for me. I see small gain potential with too large a risk. So when do you short?

I’ll look for shorts if the S&P 500 – SPX starts to break down under 1365.47 as shown on the 15-minute candlesticks.

The Proshares Ultrashort QQQ – QID, is one way to play the market short. You actually buy this ETF. I’ll look for the candlestick to hold over 55.88 on the 15-minute chart for entry.

A similar strategy using the Proshares MidCap 400 – MZZ can be executed. Again I’ll look for a candlestick to hold solid over 65.22 on the chart before buying.

Until signals such as these are confirmed though, it’s dangerous short selling a market that keeps going up.