How to Trade in a Bear Market
Part of the Trading For Dummies Cheat Sheet
When the market is reflecting investor fear and uncertainty — is a bear market in other words — your trading strategy should focus on looking to sell or short fundamentally weak companies with the following characteristics:
With poor earnings or no earnings.
In a weak sector.
In a declining economy.
While the stock is approaching a technical sell signal on its bar chart and performing worse than the average stock with low relative strength.