The path of least resistance is higher. Yes, the market is over extended on the upside. However, a lot of folks are cautious, myself included, and that will limit any downside. Another cliche that comes to mind is "never short a dull market." Today's market action, other than a few special situations, qualifies for dullsville.
MGM the casino operator is in the news. Readers will remember I bought puts and got out at break even. The huge gap open up is one reason I prefer buying puts to shorting stocks. However, that is my personal preference, not necessarily something that will work best for everyone. If positions are small, shorting stocks is not inherently any more risky than buying put options. The devil is in the details of money management and how much is allocated to any one position.
A couple of stocks I am watching closely as potential longs include JWN, TXN, KMX.
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