Waiting to short again after relief rally is over

My exsiting 4 lots S&P has been closed out, with a negligible loss, since my SL has been deliberately set at EP. I will be waiting for H-shares to turn bullish again, and if this does not happen by end of this month, I will probably sit out this rally, and in turn, wait for another shorting opportunity.


"I expect that the S&P 500 (SPX) will hit 550 or below within three to six months. With this in mind, I think it is quite possible that the current rally could extend the S&P back to the 800 to 850 range before running out of steam -- and that would mean a Dow (DJI) of around 8,000."
(Tobin Smith)

"A major show-stopper for the positive momentum will be the bad news from the Q1 reports and the continuing stream of terrible guidance for the upcoming period. Another certain downer will be the growing realization that the massive asset deflation from forced deleveraging won't be finished any time soon. In fact, it will take years to fully play out. And, as this becomes more apparent, more investors will throw in the towel. So, how do you make money in this market? By trading the market extremes, not by investing. "
(Tobin Smith)

"Add short positions during bear market rallies and cash in when the market is oversold. If you keep repeating this formula, you should be able to survive this bear market with your portfolio intact."
(Tobin Smith)

I agree with Tobin wholeheartedly, that the only way to make serious money from the stock market these days is with short positions on all bear market rallies.