Short Selling Ideas - GMCR, Z, TSLA, BBY

Currently equities are very overvalued and sentiment is stretched to multi-year bullish extremes by some measures. 

Dividend yield on the Dow is currently 2.45% and the S&P is at 2.10%.  By historical standards that's terribly low, which suggests equities need to correct considerably in price to bring those yields to the high end of the historical range which is around 6%.

Today we present a few stocks that are good candidates for selling short.  We'll look to do so depending on market reaction to the Federal Reserve announcement later today.  If it looks like a market slide is beginning, that may be ideal timing. 


GMCR, Green Mountain Coffee Roasters Inc.

We shorted GMCR a month ago, and shortly thereafter were stopped out at a loss per our stated stop level. 

On a technical basis, despite the uptrend still intact the stock looks like a good target per many other factors so we're prepared to possibly take another shot at shorting at it.  We see probable resistance in the area between 90-110 per the topping process  in 2011.  If we go short, we'll cover on closes over $100

Z, Zillow Inc.

While there's not yet a technical breakdown, Zillow looks extremely overbought and appears to be having trouble getting and staying over major psychological resistance at $100.  If we go short, we'll cover in the event of its closing above $100 for three consecutive days.

TSLA, Tesla Motors Inc.

Once again there's no breakdown, yet, however the trading of late seems sluggish and various measures reveal that sentiment is at a bullish extreme.  We'd cover on closes above $175

BBY, Best Buy Inc.

This company seems like just another big box retailer, probably one that will not fare well in the longer run.  We're short already, and we'll cover on three consecutive closes over $41 which would be above the 7-year downtrend. 

Worth reading, and rest assured the reality is much worse than these reported self-assessments: Investors too optimistic for their own good.








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