So this week looks to be make or break for equities.. Personally, I am leaning toward the bear camp, however I feel that we will only get a strong selloff if we close under the 200 day simple moving average or 200 day exponential moving average which stands at $1258 and $1263 respectively.
If we do get a break below the 200 day moving averages, I would consider shorting the following stocks:
VHC — VernetX Holdings is a company with a billion dollar valuation which had only $17,000 in revenues last year! LOL….
CRM — 400 PE ratio… declining earnings, insiders dumping stock, looks to be iin a speculative bubble.
AMZN — This company has been unable to translate sales growth into profits and now that states are looking to tax this company, any successful move to tax AMZN’s sales will crush the company’s earnings and their market cap.
BXP — an overvalued REIT
YNDX — an overvalued web IPO
LNKD — already discussed on Hedgephone.com a million times: way too expensive here still…
LULU — lululemming is an overvalued name.
GMCR — Sam Antar says they are cooking the books, and I agree.
If we trade above the 200 day as we are currently, investors should look at these stocks for their long book and avoid the short side altogether:
TGT — 6X EV/EBITDA
WMT — Dirt Cheap on Free cash flow, repurchased 8% of total market cap last year…
JNJ — cheap on free cash flows, Buffett holding
KO — Buffett’s largest stock holding.
RIMM — Guidance mess annoys me, but free cash flow per share still impressive… only good for a 1-2% position in your account.
KEP — 25% of book value!
PM — People are smoking more and more in Europe
SIVR — Silver could go the way of Rare Earths and double soon.
GLD — Gold is real money, not paper fiat bubble money.