Hi JG,
Thanks for sparking me to look into this question of which sector to focus on for the kill. It forced me to look through some of the sectors I follow, and I see a tremendous opportunity shaping up in the big techs. The Nasdaq 100 is in a lay-up mode, or fat pitch if you prefer baseball. It will scream up to the 1248 area tomorrow on the cash, then reverse sharply and should see something south of 1100, 1087 to be exact, during this onslaught.
That's a 12.7 % drop in the big blue chip techs, and should yield a better return than shorting the average S&P stock. Other than the blue chip techs (which I presume will collapse because of some nasty earnings reports), I would go straight to the tech sectors that have been the hottest over the prior month, and of course, internet stocks top the list. These will probably offer even greater rewards to the sharp clawed bear. :o)
The only groups I would avoid shorting are the safe-haven stocks like the drug & healthcare, consumer staples, foods, chemicals, and utilities. Everything else is open game.
Happy hunting!!
David |
