One of my favorite short plays is my “Icarus” strategy. I look for stocks that filter at the top in
Beta, percent to 200 day MA, and one month price gains. I then watchlist the top 15 names for the
week (I can’t manage more than that, and I might only pick 3 or four
trades). I wait for the momentum to wane
before I enter the trade. I also
determine if I am going to straight short them, Execute a put, or a credit call
spread. My stop is its recent high.
Here are my top 15 to watch for consideration1:
RDN Radian 17.89
ETM Entercom 14.91
LCUT Lifetime
Brands 13.98
OLP One
BONT Bon
Ton Stores 16.71
CKEC Carmike
Cinema’s 17.36
MTG Mgic
Investments 12.60
FNSR Finisar
Corp 16.76
REIT 14.25
CROX CROC’s 10.54
LPX
DIN DinEquity 43.69
GBX Greenbrier
Companies 16.59
TRW TRW 33.36
ATPG ATPG
Oil and Gas 22.73
1(Editor's note: I created a FINVIZ screen for you here.)
GBX is my favorite, I am also already short LULU (made my
filter but did not include on the list) and added to it on Thursday.
These are not necessarily market calls, but simply physics.
Please define your profit exit (learned the hard way for me) as these are high
beta stocks.
Feedback is always appreciated, and I will post any of these
I enter next week. Enjoy.
