I often cannot decide if XYZ is a long or short, what is the best way to know?

I’m enjoying a few days of relaxation but had some time to update the FAQ page and here is the first one I have. I will post a couple more in the next few days.

If it is not clear whether you should be long or short it typically means that you should avoid trading the stock until the message becomes clearer. There are thousands of liquid individual equities and ETFs to trade, if you have a favorite stock to trade that is fine, but don’t forget that cash is the best position during uncertain times, it allows you to objectively observe the action and have capital ready to deploy when the lower risk trade is revealed by the market.

ETF clos July 30 2013