My bet against HD is based on expected year end sales of some of 2012′s best names (except financials). Is a company isn’t going to juice their year end dividend, look for shortbterm money to exit their trades (like Apple).
That’s why I am looking to buy puts on companies like Sherwin Williams. Trading close to a 52 week high, up huge this year, a pull back to $140 of below is highly likely before mid-January IMHO. If we get early strength this week, I will buy January 2013 puts here as well.
But that doesn’t stop me from continuing to love growth companies like SODA that have finally expanding their television advertising. I’m a big fan of companies that loom to expand their TV marketing – just like those jokers at (SPNG) tried last year. I like SODA below $40, but I’d like it more if I could entry below $36. Let’s see if I can exercise the same patience.