Tech names to short -
Use tight stops, of course
Apple AAPL - good company, price is ahead of itself, expect individuals selling to pay US income tax soon.
EBay EBAY - way over priced, getting arrogant, likely to be threatened by some trick Google does.
Those are my best tech shorts for right now.
Expect reversion to mean every 2 days - meaning choppy.
I have a number of puts on the above, plus
QCOM, ADBE, YHOO, AMZN, ORCL, SEBL, MSFT
ADBE and QCOM still look positive.
Risk with SEBL is they will be bought.
AMZN, QCOM the best shorts on a fundamental basis for next few months.
YHOO - competition from Google etc. runs against increases in online ads.
I have had puts on Research in Motion, RIMM, but sold at a nice profit. Stock is overpriced, and new cell phone nets and WiFi will eat up their market. This stock bounces around a lot, blew out my stops 3 times. Optiions are expensive.
Note there are NO Semi stocks in the above list, and No biotech.
Biotech may be the best sector to short, as the aggregate market cap of all biotech companies is much higher than all the potential revenue for the next five years, maybe by 40:1
I am long Biogen BIIB since it is a real company whose stock was knocked down by over reactiion to a few problems with Tysabri, their MS drug. |
