Volatile markets equal Shorting opportunities

This past week many technical support levels were smashed in stocks such as BHP, WPL and RIO. Shorting any of these stocks since the last Tuesday just gone would have made you a profit. But what techniques can you use to Short the market with safety?

I use my personally devised Range-Change-Ratio technique (RCR). It is a way of monitoring the tipping point in stocks through price and volume activity to see when bulls out number the bears or vice versa. It provides a level of safety in the market becasue of the 5 rules it employs. This week we used it to short WOR and UGL. We made profits of $3500 and $2500 respectively.

An article outlining my RCR technique was published in Daryl Guppys newsletter early this year. If you would like to learn how to trade bullish and bearish markets using traditional technical analysis or my own techniques, sign up to The Technical Report today.