I thought about my short-selling strategy over the weekend. If the S&P 500 falls another 3%, I'll start taking profits on my short positions, as this would represent an 11% drop from the high, while I expect the first wave of decline to be between 10% and 15%. Often, the first wave of decline is accompanied by a violent rebound; for example, Bitcoin fell from $100,000 to $80,000 and then rebounded to $97,000. If I don't take profits on the first wave, I'm likely to be stopped out during the subsequent rebound. The most decisive drop will occur in the second wave of decline, and that's when short positions will make a killing. We'll see then. Besides the index, there's one stock I'd consider short if it rebounds: Tesla. There's no particular reason, but intuitively, when liquidity is tight and DevOps issues a second coin, the first coin will likely fall, even if its fundamentals remain unchanged; the attention premium will weaken.

Another reason to consider short Tesla is that a large part of the current price-to-earnings ratio comes from the belief in Musk, which is valuable in a bull market but worthless in a bear market. Moreover, there is another stock that will soon divert the belief.

I firmly believe that all principles are interconnected, and the best memecoin trader can outperform everyone in the stock market.