Optimism rages on...

Optimism in the markets is getting stronger and stronger. Things are improving for short sellers by the day. Although the markets have gone higher in very strong volume most of the week, I still am a bit skeptic about how long is going to last. Next week should clear up the clouds. Even when the jobs data has come out weak, the markets are looking for indications that that would make the Feds to stop raising interest rates. This is a typical optimistic view of bull markets, when the markets try to squeeze positive news out of anything. Keep in mind that oil is creeping up. When oil goes about $66-67 towards $70, would the markets still take it as positive? I doubt. The reality will sink in eventually and that I feel is not too far.

Potential industries for shorting:

Airlines
Freight
Techs

On a side note, Goldman Sachs has increased the price target on Google to $500 (they have done so for Yahoo as well with it's price target at $50 with about 20% upside potential). Watch out for their earnings out in a few weeks.