Jill Malandrino of TheStreet's Options Profits and T3Live's Chief Strategist, Scott Redler, tell you what technical levels to look for now and why we still fundamentally love this name for a long-term investment. Here is the juicy options play and analysis from Skip Raschke.
Every (well almost) Saturday morning I have my coffee while rummaging through my latest Barrons and, the weekend edition of "Investor's Business Daily". I generally skip over the waste-of-my-time stuff with IBD, going instead to the second section of that paper in order to peruse the " IBD 50" gang of growth stocks that pass muster as per the collective genii at IBD. This IBD 50 stock watch list is ranked mostly by fundamentals, with a dose of technical analysis thrown into the mix. What truly caught my eye this weekend was while going to this section (B1), I could not help noticing that IBD is now in the business of teaching how you too can short the market!
That "shorting the market" advertisement headline reads: "Claw Your Way to Profits in a Bear Market." (Talk about a bad pun! They make me look good! And I don't think of bears as "clawing" -- ripping to shreds maybe!) What it is pitching you on this same page that also contains its best growth stocks is a "Short Selling Home Study Program", which IBD justifies worthy of its efforts to have produced by then writing on this ad: "For quite a while, IBD subscribers have asked for a short selling product to help them take advantage of bear markets. After much research and analysis, we're pleased to introduce the IBD Short Selling Home Study Program." This "Home Study Program" will put (bad pun) you back $695! You cannot be serious, IBD!?! People actually pay $695 for this "instruction"?!? This is precisely the evidence that I have been waiting for in order to get the signal that this bear cycle's end could soon be near!
Here is what I suggest you do if you really want to learn what short selling is all about: go short Apple ( AAPL)! That's right. Go short 100 shares. Be my guest. You will learn far more being short Apple than any "home study" program will ever teach you! Oh, and stay short it, maybe until the time when that short sale burns over and through $695 of your hard earned capital. Or, instead, you could save yourself some time and especially $695 worth of pain if you would accept the tangential philosophy of Robert Stovall, who once said: "Selling a soybean contract short is worth two years at Harvard Business School!"
Take a moment to review the T3/OP video with Jill and Scott as they walk you through the technical and fundamental case: