I have a feeling we might be in the midst of short term capitulation. Things look really bad, many former leaders are getting abused and it is really tough to buy right now.
Note that does not mean we are going to see the uptrend resume. If we get a post capiutlation bounce, I think it will be of the "dead cat" variety, and we we resume the downtrend later this month. A bounce might be a good place to add shorts.
I have exited most shorts and made two buys.
I took a pilot position in RICK at $24.90. My stop is just under $24, with the recent high at $28. Low risk, decent reward. If the market continues to tank and I get stopped out, no big deal.
My other buy was MON at average price $115.23. This one got dicey when it dropped below $110, but it has recoved and his back up over $117.
I likely won't do anymore buying. I don't like to go all in on up bounces in downtrending markets. I'll make a few small long plays, but that's it. I do still like gold and oil related stocks on the long side.