I think it's a bit early to short just yet, though I can see certain sectors being ripe for a punt right now. But I'm saying this as someone who's moving away from classically "risky" practices in the market, so my biases might blind me from seeing an opportunity that others could easily exploit.
The word ´short´ gets thrown around a lot, but I think many of us just use it as a blanket statement as a way of describing a bet that something will tank. In my case, I never short companies, but just use put options which achieves the same purpose without the unlimited risk that actually shorting a stock gives. With puts, the most you can lose is the money you bet, with shorting, you can overnight end up on a window ledge. Like that guy that we talked about here who shorted a pharma company and then woke up being millions of dollars in debt off of a $10k short position because the company got FDA approval for one of it´s drugs.
Much less risk to short sector ETFs (or go long the inverse of the sector). Also, with a pair like TQQQ and SQQQ you can always be long something...
Hong Kong down big right now....tomorrow will be another blood bath with financials and energy leading the way.
Certainly looks like you did well on the financials short. That is if you realize those profits soon enough. I got rid of a telecom from Europe yesterday and moving those funds into telecoms/financials/possibly reits in North America.
Boeing may be something to look at tomorrow if you want a quick pop. It is down huge today on what appears to be a bit of misreporting, or at least the severity of what is being reported. Once Boeing got crushed, the market overall followed it, which drove it further. I may play a bit tomorrow with some Boeing calls as a quick gamble.
Global financials would be a decent bet. But if that happens then you're really talking about big hits to the real economy as well. So I'd be bearish on real estate in a lot of markets that had relied on the petrodollar or Chinese money to prop up the high end consumer.
