A Long List of Possible Shorts

Here is a list of potential shorts that Mr. Sparkle, Biotechman and I have assembled based on fundamental analysis, some of my favorites will have technical charts. I have also compiled a list of short ETFs for those who would like to go long in a bear market environment.

Momentum stocks with high P/E ratios:
FSLR P/E:125.3


Long ways to go if you ask me, if the market starts making new lows.

CMG P/E: 56.1
Weekly Chart


Volume by price bars say it could go lower. Momentum up, momentum down.

BIDU P/E: 107.6


A darling up, a darling down.

Others: Ticker, P/E
LVS 161
WYNN 63
LULU 132
CTRP 68
JASO 36 technical breakdown
SPWR 533 although forward P/E is 18
SOHU 63
STP 52
AEM 68
BSC 54
AMZN 64
AKAM 61
ISRG 79
VMW 101
GG 89
GENZ 171
UPL 52 (good energy short watch)

On a technical basis, I will be keeping an eye on the coal stocks and shorting the USO on a break at $68- key support.
My favorite coal short right now is ANR followed by ACI, CNX, FCL, PCX, BTU.

Look to short the rallies and look to go counter on the market gaps in the morning. Louise Yamada was on Fast Money last night and her thoughts are we are in a bear market so look to short the rallies due to the market technicals. It seems everyone is a technical analyst right now and rightfully so.

I can understand how it is difficult to short so find solace for your IRA or trading account by going long on the dips with the Ultra ETF shorts! They do have options although some have wide bid/ask spreads but as participation grows with these new ETF’s those should narrow. Here is a snap shot of those Short ETF’s, try to go with the bigger movers if it suits your tolerance.

Remember you can still buy the dips on something if your implicit memory has been trained that way just remember to have stops and targets in place and cost avg in and out just like any other stock (isn’t it great to have these new vehicles?). The SKF, QID(probably my fav, nicely liquid options- ultra short QQQ), SRS, TWM (nicely liquid options- Ultra short Russell2000), SDS (nicely liquid options- ultra short s&p 500), DXD (ultra short Dow30, liquid options), EEV (Ultra short emerging). Leverage upon leverage or options upon leverage is not too shabby for any portfolio.

The QID calls were baggers yesterday from the lows to highs now that’s an amazing return no matter what.

Comments

[Mark Anthony]

Can you explain why you are trying to short coal stocks. What's the rationale? I actually like coal a little bit. Also have a look at platinum group metals. Check out PAL and SWC:

seekingalpha.com/artic...

[User 149594]

please show me how thank u i:m down 30 grand in this option market
jan

[joe f]

please tell me what the acronym ETF stands for...

[JonathanLiss, SAEditor]

It stands for Exchange Traded Fund. For more, check here: www.investopedia.com/t...

[DanielJacome]

Chipotle reports tomorrow - what is your take on the quarter. They could come out and surprise since everyone is expecting a recession-related miss.

[optiondragon]

I like CMG but I like PCLN better. CMG should beat and raise only question is how they are handling higher ag prices in conjunction with food prices. Analyst checks through flyonthewall.com say that they have performed well last quarter.

[DanielJacome]

They are using labor efficiencies and modest menu increases (1.5-3%) to offset higher ag costs. Corn is feed for chicken and both prices for those inputs have popped like a basketball released from underwater. We would pick up CMG down here. If 100 is resistance, buy @ 80, but there is a lot of $ on the sidelines that is still liking the longer term story and we have never had a pullback this large in Chipotle stock (200 day). Fresh capital would likely get interested if the bounce proves short lived.