Since the market opening bell, amid the volatility, it has been the short sellers’ day, who have been kept out of the market for too long. Aggressive intra-day short sellers should have good returns so far today. But is it time to go short all the way?

My view is that it is still not the time to turn to short yet. If the temptation is too great not to go short, the best strategy is to trade hit-and-run.

Many traders or investors with ready cash have been on the sidelines in the past weeks and they were left out from the money making opportunity during the same period. If the market does rebound after this temporary retreat, this group of participants might be the next driving force to push the market higher. Beware of this potential force if one has short positions.

How about buy-on-dip? I will not even think about this “aggressive” approach either. In view of the weak real economy, the market does look like it has not really bottomed yet.

I would rather stay at the sidelines, watching the ups and downs of the market and wait for clearer signals before taking any actions whether long or short.