Just to crystalize for myself my current understanding of how to choose the right instruments by direction of both market and the instrument itself...
1. Determine overall market trend. Is it trending down? Up? Currently its down, even though we had few up days.
2. When market is trending down, trader should be looking to short.
3. To short, trader should select instruments that will likely yield a good short opportunity. These instruments should also be trending down overall (on the daily). Like AMZN right now.
4. Look for daily setups for short F.B. Even during rally days like today (which could just be short covering day), look for opportunity to short downtrending instruments. Because down trending instruments will likely yield stronger moves down than instruments trending up.
5. Short against a strong level.
