Reader Matt writes:

Dear Gary,

I've enjoyed your commentary on technical analysis for years.

I think the way to go in this market is to be a bear, but, as you say, the market's oversold. What specific conditions should we wait for to start shorting?

Matt, instead of specific conditions, I focus on specific candidates.  That is, if I find stocks that have recently broken support or a major trendline; on high volume; and aren't oversold, then it's time to go short.  Lately, though, 99% of the stocks that meet the first 2 requirements, are down so far, so fast, that they're too risky to short.  Therefore, best to stay in cash right now.