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Going Short the Market Using Broad Sentiment

Going Short the Market Using Broad Sentiment

Aired On

May / 13 / 2024
12:00 pm - EDT
Tim Quast
Market Structure EDGE

Shorting stocks is popular. It’s also dangerous, difficult and unpredictable – if you don’t put rules and probabilities on your side.

If you’re shorting stocks or the market based on earnings multiples or another factor dependent on valuation, you’re out of step with what drives the market. You know the old saying, “Don’t fight the tape?” It’s more true than ever in today’s 98% algorithmic, 100% electronic stock market where market-makers are exempt from short-locate rules. 

Change your odds! With EDGE, you can incorporate market structure. Tim Quast will show you how to use Broad Sentiment in EDGE Daily Trading Ideas – on your IBKR platform – to shape better shorting strategies.

Disclosure: Interactive Brokers

Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Market Structure EDGE and is being posted with its permission. The views expressed in this material are solely those of the author and/or Market Structure EDGE and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Disclosure: Short Selling

Short selling is an advanced trading strategy involving potentially unlimited risks and must be done in a margin account.

Disclosure: Margin Trading

Trading on margin is only for experienced investors with high risk tolerance. You may lose more than your initial investment. For additional information regarding margin loan rates, see ibkr.com/interest

Disclosure: ETFs

Any discussion or mention of an ETF is not to be construed as recommendation, promotion or solicitation. All investors should review and consider associated investment risks, charges and expenses of the investment company or fund prior to investing. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Disclosure: Complex or Leveraged Exchange-Traded Products

Complex or Leveraged Exchange-Traded Products are complicated instruments that should only be used by sophisticated investors who fully understand the terms, investment strategy, and risks associated with the products.  Learn more about the risks here: https://gdcdyn.interactivebrokers.com/Universal/servlet/Registration_v2.formSampleView?formdb=4155

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