What Are The Best Stocks To Short Now?

Wednesday, October 14, 2009

As the market rallied to such an extreme level there are probably lots of good shoting candidates on the US markets. I think it would be interesting to open a debate here on the best stocks to short right now.

Is the dollar going to recover somewhat and are the mining and basic resources stocks that will give us the best bang for the buck? If this is the case, maybe United States Steel Corporation (X), Freeport-McMoRan Copper & Gold Inc. (FCX), Hecla Mining (HL) and Goldcorp Inc. (GG) are good candidates or even Market Vectors Gold Miners (ETF). Oil stocks could also be an interesting shorting pick, especially the smaller names that have run too far, too fast.

But the market correction can be focused in the financials and in that case I think the best play will be on the ETF, Financial Select Sector SPDR (ETF) or in some selected names like American Express Company (AXP), Bank OF America (BAC) or some smaller regional banks. Many market analysts have been expressing concerns about the commercial real estate and there are plenty of names to sell short on that space, Boston Properties, Inc. (NYSE:BXP), Simon Property Group, Inc (NYSE:SPG) or the sector ETF, iShares Dow Jones US Real Estate (ETF).

For instance, the short seller specialist, Jim Chanos is focusing on shorting healthcare stocks. I don`t think its the most interestign sector to short at the present time.

But the idea of this post is to open the debate on shorting opportunities on the US stock market with the members of this big trading community sharing their shorting picks and the reasons for the their selections. This way we can take advantage of the intellectual capital that we built on this webpage.


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