In a weak sector, should I short the weakest stock or one that has bounced into resistance?

Personally, I don't like shorting a stock when it's already extended to the downside. It feels like chasing. If that trade makes money, I might gradually become less patient about waiting for daily levels. From my experience, shorting a stronger name versus a weaker name within a weak sector doesn't affect the win rate that much. Occasionally the strongest name catches up and has a bigger move down. But I'm not sure about that; it's just my experience.

Source: EWZ crash | 26 Oct 2026