A stock to consider short

Check out ADI. Based on their Q report, the next Q's revenue will be down 6 to 12%. I believe it will drop to $39 and below in a couple of weeks. For day trading the target can be $40.20 For swing traders the target can be below $40. The Ex dividend date is Dec 5th. The divident amount is 30 cents. Do your won research before getting to the trade. I am not responsible for your trade and possibly loss.
Now it is traded at $40.77

 

TGT (Target) is another stock to consider shorting. It gapped down at open and then creeped up and now it is almost flat. The sales were not good. Expect more pull back in the coming days. Now it is traded at 62.80

 

On the buy side, if you expect the market will pull back from what we are here, consider buying TZA at the current level (15.18). TZA is a 3X leveraged bearish Russel 2000. So be careful.

Note: TZA just popped up to 16.60 yesterday so it is a good way of getting rich fast for those who wish so but again be careful. Nothing scary just be careful.

 

By the way, I believe that if a deal is reached on fiscal cliff, market will sell off. I think just the opposite of how market believes.

 

How do you reason this with Ben still printing like crazy?

 

ADI went ex dividend today so the fear of shorting and paying dividend is gone. It is trading at 40.37. I believe it is the perfect time to short it at this point. The good thing is that you won't get burnt because of possibility of the stock jumping up. The 38 PUT option activity for December also proves that this stock should drop to below $39. I believe you can go heavy on shorting this one.

 

Just an update on my short position.
ADI is up $1 since my last post. I keep shorting more shares and selling covered PUT 39 and $38 for Dec @ 0.15 and 0.20. I am confident on my position. In less than a month, we should see ADI around $39 and maybe lower.

 

Why are you shorting it?

 

For many reasons. A few of them are:
1- I believe market will pullback even after fiscal cliff is resolved.
2- Their next Q (based on the company's current report) will be 6 to 12 percent down.
3- Retail sales are going down. Restaurants are warning. That shows that consumer spending will slow substantially

Also since I trade mostly tech stocks, and I have good experience on this stock, I believe I am familiar with the pulse of it.

 

Today ADI was downgraded by CITI and it is trading at 41.41 now. Much much more room to go down. It is only my opinion based on my long term experience with this stock.