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:
McDonald's (NYSE: MCD). The era of the 'frugal consumer' is well underway in the United States, to McDonald's detriment. There's also a trend away from standardized fast food, and toward local, 'roadside' hamburger joints and diners: they offer unique flavors and recipes, fresher food, and often atmospheres that can't be beat. Cover Short on a bounce off $52, $50, $45, $40, or $35. Buy/Stop Loss if you were to sell shares in this company: $67.
Fortune Brands (NYSE: FO). The cutback in consumer spending will also hit spirits sales – once considered to be recession-proof. (Pun intended.) There's also a trend away from stronger liquor and toward wine. A substantial increase in Australia's taxes on spirits adds to the negative mix. FO's chart also looks like a bear hug. Cover Short on a bounce off $30, $25, $20, $17.70, or $15. Buy/Stop Loss if you were to sell shares in this company: $53.
Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.
Entrepreneur's Journal: Putting together a solid sales contract
The week in preview: Earnings from Walmart, Macy's, and other retailers
Six top trades for the rest of 2009
