“Wall Street began the week with a strong start Monday as better-than-expected profits at Citigroup Inc. and a healthy increase in consumer spending renewed investors’ optimism about the economy. The Dow Jones industrials rose nearly 100 points.”
It’s my own opinion, shorting is not that ideal for long term. Stock market tends to go up in the long term. So, the chance for the stock to go down is lower than go up. For shorting position, I monitor the market closely with high liquidity & flexibility. And I would not put all my $ on shorting. I have already sold my RE ultra short fund after I took some profit. I always remember my investment professor told us that buy low, sell high! Both RE and finance markets have already declined 20-30% this year. Without more bad news & data, both markets are bouncing back now. They may decline if there are bad news and data being released.
Thank for sharing your GDP data. I would use the data as reference, but not counting on it 100%. If the data and market have 100% co-relation, we would not have this huge housing bubble now. Data is a good reference, but I would also look over it to everything else, like news, Fed policy, earning reports, regulations and even the whole world that may affect the stock market as well. Yesterday, the major Asian stock markets went up over 2%. Don’t be afraid the value of your portfolio goes down. We all learn from experience.
