I have entered into four new short positions this morning, focused on semiconductors. In each case, my stop-loss is set where I’ve drawn the dashed red line (typically a price gap or the recent “lower high” for the stock.
Not to say that I’m shorting indiscriminately. For example, On Semiconductor remains untouched in my Bear Pen, since the stop-loss level is much too far away to make for an appealing risk/reward ratio.
