Continuing to look for 2012 winners to fade into the New Year


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.

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