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Short City: Exxon-Mobil, Wal-Mart

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Every market is a two-sided market, and while the typical investor makes money during bullish phases, experienced investors know how to make money during bearish phases, as well. In fact, many experienced and institutional traders make more money shorting stocks than by going long.

Short these shares if you can tolerate high-risk and are an experienced investor that does not remove Buy/Stop Losses.

Exxon-Mobil Corporation (NYSE: XOM). Above-average industry costs, and slack U.S. gasoline demand, due to the recession's lay-offs, will weigh on FY2009 earnings. Cover Short on a bounce off $60, $56.50, $55, $50, $45, or $40. Buy/Stop Loss if you were to sell shares in this company: $86.

Wal-Mart Stores, Inc. (NYSE: WMT). Lower consumer confidence finally hits the super discounter, with analysts seeing just 1-2% same store sales growth in FY2009. Further, WMT's ability to repel workforce unionization may be tested again in the year ahead. Cover Short on a bounce off $46.25, $45, $40, $35, or $30. Buy/Stop Loss if you were to sell shares in this company: $67.

Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.
Symbol Lookup
IndexesChangePrice
DJIA+15.5010,449.21
NASDAQ+5.782,174.96
S&P 500+2.811,108.46

Last updated: November 25, 2009: 02:14 PM

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