I've nearly pulled the trigger today on adding some shorts. Then I decided against it because there's no action in the market and no good confirmation. My 50% long, 25% short, and 25% cash distribution seems alright for now. But Figure 1 below leads me to want to add more to the short side.
As shown in Figure 1, the market is still clearly in a downtrend. Moreover, we are at the top end of the channel. So shorting at this point has a good risk/reward ratio.
[caption id="attachment_983" align="aligncenter" width="500" caption="S&P 500 ETF"][/caption]
In particular, Goldman Sachs in Figure 2 seems like a decent play.
[caption id="attachment_984" align="aligncenter" width="500" caption="Goldman Sachs"][/caption]
But as I was saying, I'd rather wait for GS to break the triangle first before making a move. With the current market, it's better to be late than early.