On June 29, 2008, I posted that I thought it was time to short stocks. Since then, I have been working identify stocks to short. Starting with 100 possible candidates, I have come up with a very short list (no pun intended) of three stocks I plan to sell short.
These are the stocks I have identifed to short:
So far, these are the only three stocks that I've identified for shorting. For reference, I try to find stocks in a confirmed down trend and still have potential to fall significantly. Thus, I avoid rising stocks due to fall (e.g. energy and commodities) and stocks below $15.
While I thought I would find a lot of opportunities, many potential candidates were in were already significantly beaten down. Housing, financial, retail, and auto sectors had a number of candidates that didn't seem to have much potential to fall further, i.e. already close to or below $15. In addition, I am currently avoiding stocks which pay a dividend.
Today, I sold short 100 shares of Las Vegas Sands at $38.10. Interestingly, I also tried to sell short Sears Holdings at $72.09, but was unable due to shares "not being available to sell short." Afterwards, Sears fell to $71.35 before recovering and closing at $74.01. Lucky me :-) I have not yet tried to establish a short position for Life Time Fitness.
Disclosure: At time of publication, I am short Las Vegas Sand in my trading account. The account managed by our financial advisor is long Sears Holdings.
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This is not financial or stock investment advice. Please consult a professional advisor.
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