The Ambitious Trader: Stocks, Trading, Investing..My Ambitions as a Trader and Investor

This is a one way ticket that takes you on a wonderful journey into the vast world that is the stock market through my eyes, my point of view.

Thursday, June 07, 2007

Trying to not miss a beat.....

Hey guys,

For the the short-term, the markets are looking pretty bad. I am starting to form a short position plan just in case we can't jump out of the down trend. The way I see it, in a market that is filled with M&A and buy out activity, it simply isn't safe to short stocks. Companies are always on the look out and will want to buy a stock whose price has depreciated in value. So, if you want to short, short stocks that are very unlikely take over candidates. This can include companies such as MSFT, GOOG, PNRA, etc. Do not short small-caps that are attracitive in their evaluation such as SNN, VSEC, SPAR and stocks such as those. Look for bigger, older companies that have as large market cap, such as DNA for example. Still, if you don't want to take on the added risk, you can also short ETF's and buy inverse or bear mutual funds.

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