Declining stocks have brought the market to oversold territory with winners in shorting stocks and exchange traded funds (ETFs), but is the time to short over?

The last couple trading days in January helped short/inverse ETFs perform quite well, remarks David Penn for Forbes. Some short ETFs include:

• UltraShort Technology ProShares (REW): up 5.9% in the last month
• Short QQQ ProShares Fund (PSQ): up 4.33% in the last month
• UltraShort QQQ ProShares (QID): up 7.5% in the last month
• Short S&P 500 ProShares Fund (SH): up 11.4% in the last month
• ProShares UltraShort S&P 500 Fund (SDS): up 22.3% in the last month
• Short Dow 30 ProShares Fund (DOG): up 12.8% in the last month
• Short Midcap 400 ProShares Fund (MYY): up 8.1% in the last month

Are these funds still opportunities? The key is to eye the trend lines, and use either the 50-day or 200-day moving averages as your guide. Some of these funds are below their trend lines (REW, for example), while others are close to popping above (SH) and others are above them (PSQ).

Any pullback in short funds, however, could signal opportunities in long areas of the market, as well.

Tags: Asset Class ETFs, DOG, Dow Jones Industrial Average, Long-Short ETFs, Mid-Cap, MYY, NASDAQ, PSQ, QID, REW, S&P 500, SDS, Sector ETFs, SH, Technology