I have already described that a fear is a much stronger emotion than a greed. This is one of basic premises why to look for bearish daily stock picks. You can use such daily stock picks for swing or position trade or use it in some daytrading strategy as well.
The stock market is not only in uptrend
The stock market experiences three different stages. The most common and popular is the uptrend when the general stock market indexes, like the S&P index, rise in its value. But it is also neutral stage, when the market is moving sideways. And finally it is also downtrend period when the market is in the decline and many stocks experience huge drops in their price.
These declines are often violent and catch many long-only investors or ill-prepared short-term traders in unpleasant situation. And it is the ideal opportunity to make money by shorting stocks.
You can find bearish stock market pick anytime
The final reason is that it is always possible to find some stock market tickers in a downtrend or pullback move. The number of these tickers is larger if the general stock market is also in a decline. But it is possible to find a decent amount of swing or day-trading stock picks that offer bearish trading opportunity also when general stock market trend is up or neutral.
You can see same bearish examples during the period of the January and February 2013 when the S&P500 stock market index rises in strong uptrend.
It was possible to run a scanner that found several bearish stock market picks offering quite a good trading opportunity.
Of course that the preferable trading strategy in this time was to buy some of the top 10 bullish stocks. But a trade with a bearish top 10 stock picks offered good hedging opportunity and possibility for addition profits as well.
Find more on related pages
- Understand three reasons why to look for bearish short term stock picks
- Learn from this TCO selling stock short trade example
- Read further ideas about using stock screeners