Wednesday, September 22, 2010

Bookkeeping: Short Best Buy (BBY)

A reader flagged this one - nice catch.  Very obvious resistance level - it either pops over... or does not.  If you are wrong, you can have very obvious stop out levels.  Downside targets - in the near term near $36 which are lows of last week.  If the S&P 500 can actually do a real selloff this month, then that gap comes into play and it's a really nice winner.

I shorted a 2.2% exposure in the $38.30s.  Unfortunately there are only 2 days for this trade to work because of course every Monday morning is a gap up and the stock will clear resistance as "every stock must go up" on Monday mornings. ;)

Short Best Buy in fund; no personal position


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