Well hey, Black Thursday is next week, which means now it’s time to short retail. That’s right, I said short it! I’m crazy, I know. But it’s the art of being a contrarian trader. The play is so obvious, that the smart money will begin selling. Don’t worry bulls, this is only a short term effect that short-term swing traders take advantage of. I’m not going to say it’s seasonality, but I will say that the market has been climbing quite high on very low volume, and it’s been a real killer to the bears. So, if there would be a time to sell, then it would be during the time when the herd thinks that Santa is going to save the market.
Look to short bad quality companies that have either accounting issues or are influenced by court cases, even retails that sell trendy products. For now my list of these fast moving stocks include Overstock.com, Inc. [[OSTK]] , Gmarket Inc. (ADR) [[GMKT]] , [[LULU]] , [[UARM]] .
In the meantime, I am monitoring the cheap/discount retailers like Ross Stores, Inc. [[rost]] and Dollar Tree, Inc. [[dltr]] which is probably going to hold strong so if you’re looking to pair a short, then start there. Anyway, I’ll probably be shorting OSTK and LULU sometime soon. No offense if you’ve been riding them. Charts up this weekend.
If you enjoy the content at iBankCoin, please follow us on Twitter
