"We are not defending well as a team, and we are getting punished for it," said Shearer after defeating Everton 6-2 on Good Friday.
Despite taking all three points both goals conceded were sloppy, and not all opposition defence's are as generous as that of the Toffee's.
"We have to score three, four, five, or six to win a game and it's crazy. Our confidence was not at its best because we hadn't won for five games.
"Three of those were against Arsenal, and one against Liverpool - they are the teams we are trying to catch.
"It is very difficult but the belief was back. In the second half especially we played some good stuff, scored some good goals, and it has put us back where we belong.
"The pace in the side is a big asset. With Kieron Craig Bellamy, Laurent Robert and Nobby, we have got a lot of pace and defenders don't like playing against that - it's a good combination to have."