Even though we seem to be well on our way to 12,750, there are several nice bearish setups out there. Should we take a ‘dip’ tomorrow, I will be looking to the following to ‘bank coin‘ on the short side:
SYNTHETICS: Calgon Carbon – [[CCC]]
RESTAURANTS: Chipotle – [[CMG]]
SCIENCE & TECH.: FLIR Systems – [[FLIR]]
RETAIL: Volcom – [[VLCM]]
what’s your top pick?
VLCM got a downgrade yesterday and it’s overbought. But its options are not so attractive.
Also overbought are CMG and FLIR.
I’d go in that order.
In with CMG 120. puts. Couldn’t find a nice limit entry for FLIR. Didn’t feel comfortable betting against CCC; and VLCM option volume sucks (not always the case).
Also into PALM with a straddle at 5.
Keeping an eye on UNP ($130), HOKU & GSIC (downtrends).
CCC is a good pick, I’ve been short that sucker before… back when Katrina hit, it’s main factory was under water, and the market didn’t even know about it for a couple of days.
Heh.