Well today was not a great day for longs to say the least.....
So I worked up a short that could take advantage of the current market conditions, I personally don't like to short stocks. But let's see what happens....
Over the past two days Visa has broken out of a consolidation, given back those gains immediately, and then broken lower on increasing volume. This is a typical sign that institutions are bailing out and with the overall market finding little reason to rally, this stock could make a bee line towards its IPO price.
The Play: In the next 48 hours, short Visa Inc. (V:NYSE) at $70 or better (higher is better). Be sure to use a limit and do not sell for less than $70.
Option Alternative: If you prefer options over shares you could buy the V October 75 Puts (V VO) which are trading around $5.00 as of this update
Our initial buy-stop to limit position risk will be at $85. We will set $58 as our target spot to take profits on half of the position.
Now of course, this is for educational purpose only and consult your barber, wife and the cat...and maybe even your broker if you feel the desire to just throw money to the wind........
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