Rising a lot is not a reason to short. Seeing someone short AMD at 240 and short INTC at 60 made me reflect.

As an old short seller, shorting U.S. stocks is extremely dangerous and offers a poor risk-reward ratio!

Due to the long-term uptrend of U.S. stocks, shorting can only be done during certain periods in a few years (bear markets) or when encountering junk stocks.

April was practically a trap for short sellers, basically wiping out all short sellers, big and small. And Longbridge people like to triple short, SOXS, SQQQ, they die even faster.

There are three relatively good shorting opportunities this year. The first was the past February-March. The second is a May pullback after a positive close at the end of this month, but this is very difficult and won't fall much. The third is a pullback after continuous strong gains in the second half of the year, probably just a month or so.

The current AI revolution is different from the internet bubble; it has tangible output and revenue. The giants' revenue and profits are growing rapidly every quarter. Stock trading is about expectations. When the day comes that growth is no longer rapid, coupled with the U.S. debt crisis, the market will face a prolonged decline.

I'll jump out then and short aggressively. Don't waste the good market now.