Thursday, April 17, 2008

Getting Short Darden

The consumer is under seige. His tapped out his equity via HELOCs and now that fictitious appreciation is gone. The consumer, by many accounts, is 70% of this economy. This all adds up to problems. Eating out is one of the many frivolities I believe said consumer will cut out. I stand to be corrected and would welcome rebuttals but my simple thought process comes to that conclusion.
Darden(chart above) shows a rally that looks to me to be losing steam. Please note the green lines. This is fibonacci numbers. The box as I like, is the 50-62% retracement of the prior move. We are butting up against the upper end of this box.
I am getting short 1 unit of Darden ticker DRI at $34.95 with a stop at $37.18

Good Speculating to you all.

Open Positions:
Long 6 units Currencyshares Japanese Yen ticker FXY @ $88.55 stop at $91.40
Long 2 units US Gasoline Fund ticker UGA @ $51.25 stop at $51.74
Long 2 units Ultrashort Dow ticker DXD @ $53.75 stop at $51.84
Long 1 unit Ultrashort Russell ticker TWM @ $74.80 stop at $73.74
Long 1 unit Ultrashort Nasdaq ticker QID @ $44.65 stop at $43.84
Long 1 unit Ultrashort Financials ticker SKF $102.20 stop at $104.16
Long 1 unit Ultrashort Real Estate ticker SRS $86.40 stop at $84.84
Short 2 units Daimler AG ticker DAI @ $86.20 stops at $84.20/$82.20
Short 1 unit Lehman ticker LEH @ $41.20 stop at $46.59
Short 1 unit Darden ticker DRI @ $35.05 stop at $37.18

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