Wednesday, August 26, 2009

Short Some Retailers ANF and ARO

I realize the retailers have had a fabulous run. While some have enjoyed it more than others it has been quite the spectacle. I have my doubts about whether many of these retailers can deliver on these "lofty" expectations. Given my macro economic beliefs I highly doubt these "conspicuous consumption" retailers, as I like to call them, will.

My friend Dennis Gartman is fond of suggesting that when looking for short candidates we should put our rocks in the wettest bags as they break most easily. Translation, short the weaklings as they offer the least fight.

Following this vain I wish to short a unit of Abercrombie and Fitch ticker ANF here at $33.33 with a generous stop at $35.33

My struggle in just doing this is it fails to satisfy the inner Goldmanesque greed in me which draws me to the chart of Aeropostale, ticker ARO. Readers know I have been short this name previously, only to take my lumps.

So succumbing to my inner Goldman greed demons I wish to short ARO here at $40.91 with a stop at $42.36

Good speculating and remind them to please don't ever forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 2 units Ultrashort FTSE/Xinhua China 25 ticker FXP @ $10.58 stops @ $9.94/9.54
Long 1 unit Ultrashort Real Estate ticker SRS @ $11.93 stop @ $10.94
Long 1 unit Ultrashort Semiconductors ticker SSG @ $25.00 stop @ $24.32
Short 1 unit JP Morgan ticker JPM @ $43.66 stop @ $44.71
Short 1 unit Abercrombie ticker ANF @ $33.23 stop @ $35.33
Short 1 unit Aeropostale ticker ARO @ $40.81 stop @ $42.36

No comments: