Two to Take Short
The market feels as fully valued as it has in quite some time. I have slowly taken some money off the table in the last week or so in some of the positions that I have had huge profits in since the end of the second quarter, primarily in the Energy and Materials sectors. I am also beginning to increase my short positions, as I believe we will have a significant pullback before the end of the year. The selloff could be triggered by the ongoing debt crisis in Europe, Iran, the inability to resolve the "Fiscal Cliff," or simply the decelerating earnings picture. I prefer to go short stock via various bear market option-spread strategies. This limits my upside as well as my downside, but initiating these positions lowers the volatility of my overall portfolio and has proved to be profitable in flat or declining markets. Right now, I have my eye on two retailers whose valuation seems stretched across an array of valuation metrics.
Under Armour (UA) designs and markets apparel, footwear, and accessories for men, women, and youth worldwide. It is best known for its sweat-absorbing athletic apparel....338 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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