My infatuation with retail shorts is aided greatly by the collapse in auto retailers. Here, for instance, is my first post about shorting O’Reilly. It has fallen 35% in the half-year since that post. Of course, in typical Sloper fashion, instead of thanking me effusively for a great idea offering for free, I get this………
Although the market in general has been steadily making never-before-seen highs this year, I have been doing pretty well with my nothing-but-shorts trading. A few sectors of special concentration for me have been energy, financials, and retail.
This last one in particular did nicely for me today, as a variety of shorts were smashed by Macy’s. Looking at the big ETF retail fund below, you can see the topping pattern is still forming, although there is a pattern-within-a-pattern tinted in green that’s very close to failing.
One thing that failing companies like Twitter do to scare the bejesus out of sweet bears like me is to yammer on about how they’re going to sell themselves to the top bidder. This causes most bears to break out in a cold sweat about the giant premiums that other companies will pay.
I’ve learned to get over this fear. For instance, one of my 75 short positions is Kate Spade (KATE), shown below. Word on the street is that Coach is going to buy them (who else but a seller of overpriced handbags would want to buy another seller of overpriced handbags?)