I dont know if its just me but I have no idea which stocks would be good to short anymore. GOOG, APPL, GRMN, etc, all have dropped considerably recently. I keep questioning myself when I come close to shorting them simply because of the fact that they have already dropped significantly. I mean, how low can they go? I was looking for stocks that would be good shorting candidates, and this is basically the conclusion that I came to with all of them. They've all dropped alot so far, how do I know if they will continue dropping or if the bottom has been reached? For example, APPL seems to have reached a bottom (maybe temporarily) at $120. If you guys have any stocks you think would be good to short at this time, please feel free to share along with your reasons why.
now is not time to short, wait for a rally and the worst is over crowd start cheering and saying we bottomed then short financials or tech etfs
The market is pretty cool; take for example how you can look at a stock and say, "boy it would be nearly impossible for this thing to fall further" and then before you know it, new lows. Maybe the market will rally soon (and the companies covered in blood with it), or maybe it's going to fall a lot harder before then. At any rate the worst performing stocks are exactly that for a reason - it's a far better idea to be short crappy stocks than ones that are holding up well. Financials, techs, mortage lenders......you get the idea.
The stocks that haven't cratered yet an look toppy are: Western Digital WDC - High weekly volume last week and the week before with a selloff Mosaic MOS - very extended Deere DE - Base failure with higher volume Potash POT - Extended and last few trading session had churning. Today it dropped off big however. These are a few I took notice of over the weekend. Very risky, yes but might at least you won't be afraid of every short covering rally with these.
I'm short AMZN. It has dropped 35% from it's recent 52 week high, but I still think it can go down another 10-15% if not more. I just can't justify a tech consumer play with a 60 P/E in these kind of environments. I also like FXP and SDS. Good luck.