Whatever direction you think the market is heading in over the next few months, there's money to be made in shorting a handful of lousy stocks. Until now, the rally's breadth has been so great and its trajectory so one-sided that many professional bears have been chased from the market. Now, with the market finally producing the 5% correction many had long predicted, the time could ripe for a short strategy, which depends both on overpriced stocks and volatility for success. Shorting is always a risky strategy -- losses can be theoretically infinite if the stock goes up instead of down. Just ask traders who have been waiting for Taser ( TASR) to fall apart. One should also remember that short-selling is subject to the same pitfalls as buying shares on margin, which is to say that if a position starts to show losses, you're likely to get a call from your broker looking for money. There's also risk if your stock is popular with other short sellers. When heavily shorted shares go up, others rush in to cover their positions, and the ensuing "short squeeze" can send the stock even higher. If you don't have the stomach for that kind of action but still want to play the bear side, consider a short-oriented mutual fund like those offered by Rydex or Profunds. If you've got an appetitive for risk and understand how the trade works, however, a few companies seem like good short candidates right now. Consider Cepheid ( CPHD), Power One ( PWER) and Packaging Corp. of America ( PKG). After a 167% jump in share price over the past year, Cepheid now trades at almost 18 times sales and sports a price-to-book ratio of 16. Last month, the firm said it would lose between $10.5 million to $12.5 million this year, or 29 cents to 35 cents per share based on shares outstanding as of Dec 31. Cepheid, which makes devices that detect biological agents, recently sold 5.5 million new shares, possibly in an attempt to spread out its losses.