Investor and trader Mishko Janusevich had a mantra that he used to repeat while outlining the top, new stock shorts that appeared that day, as determined by technical indicators.
He would stand next to the overhead projected stock chart at the front of the trading room, point to the stock chart and recite, "You see this stock? You see that it's dropped $8 in past two days? You think it can't drop any more? SELL THAT STOCK it's dropping more!!"
Short these shares if you can tolerate high-risk and are an experienced investor that does not remove Buy/Stop Losses.
Panera Bread (NASDAQ: PNRA). The U.S.'s high (and rising) unemployment rate, currently 8.9% and expected to peak near 10%, will hurt daytime purchases from workforce professionals. The recession should also weigh on night sales, due to belt-tightening away from Panera's pricey breads. Cover Short on a bounce off $45, $40, $35, $34.20, or $30. Buy / Stop Loss if you were to sell shares in this company: $61.
Cal-Maine Foods (NASDAQ: CALM). As the U.S. economy goes, so goes demand for shell eggs, demand for which should underperform Wall Street's estimate through Q4 2009. CALM's chart also looks like a bear hug. Cover Short on a bounce off $20, $17, $15, $13, or $10. Buy/Stop Loss if you were to sell shares in this company: $32.
Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.
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