The market is pretty volatile on this quadruple witching options expiration day, so the action is a bit on the muddy side. Some stocks that have been pounded over the past two weeks are showing some small bounces, but others, like AAPL, have remained down on the day, and we also see Netflix, Inc. (NFLX), another big leader, on the verge of a late-stage base-failure, although this is not entirely clear right now as it is holding above the 50-dma.
If you put out some short positions today and are really going nowhere with them, it is fine to back away, cover, and look to re-set-up again next week. After a sustained decline off the peak, the market can often drift back up for a few days on weak volume, but as long as your short positions allow you to sleep at night and you have some profit cushion in them, you can sit, but if you feel a bit squeezed, or nervous about losing profits, then back away and wait. The potential for another few days' of rally is certainly there, but we won't know until next week. There is never anything wrong with sitting in cash.
For the purposes of fair disclosure, we are long cash. ;-)
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