In a climate where prices tend to go up, you’re “long-biased” and shorting can draw blood.
The question is more than academic. For many traders, understanding the macro environment is essential for plotting even short-term moves. It’s one of the oldest saws in trading: The trend is your friend. In a climate where prices tend to go up, you’re “long-biased” and shorting can draw blood. Vice versa in a bear market.