I'm thinking of going short the Retail sector. From a low of ~ $18, the XRT ETF that tracks retail is up to $26, or 45%. I know the space is heavily shorted, but goodness, does anyone practical think people are going to just start going to the malls again and spending gobs of money on their credit cards they don't have?
Might use options on this one.
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Wow... I was just looking at the charts and that looks like a GREAT short.
ReplyDeleteProblem is I don't see a double or triple inverse fund. I hate to use options to short things because even when you are right you lose money sometimes.
Still, it does look juicy for shorting.
I found one....
ReplyDeleteUltraShort Consumer Services ProShares (SCC)
Problem is it is shorting some stuff that is not "pure play" retail. The index shorts the "Dow Jones U.S. Consumer Services Index". Here are the largest weighted components...
Wal-Mart Stores Inc. 11.50301527
McDonald's Corp. 5.871871696
Home Depot Inc. 4.163809219
CVS Caremark Corp. 4.05362081
Walt Disney Co. 3.32080064
Lowe's Cos. 2.847864455
Comcast Corp. Cl A 2.800215687
Walgreen Co. 2.795301636
Target Corp. 2.603488332
Time Warner Inc. 2.601450748
Amazon.com Inc. 2.26190348
Costco Wholesale Corp. 1.855802806
eBay Inc. 1.483274165
News Corp. Cl A 1.418262381
Yum! Brands Inc. 1.393345133
Staples Inc. 1.382128166
DIRECTV Group Inc. 1.281350782
Sysco Corp. 1.268483419
Best Buy Co. Inc. 1.245349741
Kohl's Corp. 1.20771979
Kroger Co. 1.185675031
Cardinal Health Inc. 1.147507204
TJX Cos. 1.116434583
Carnival Corp. 1.080086381
Liberty Media Corp. Series A Liberty Entertainment 1.063178127
Comcast Corp. Cl A Special 1.031171938
Viacom Inc. Cl B 1.002350041
McKesson Corp. 0.93339397
McGraw-Hill Cos. 0.887571816
Time Warner Cable Inc. 0.884557832
Apollo Group Inc. Cl A 0.866250577
Omnicom Group Inc. 0.838414921
Safeway Inc. 0.829495925
Starbucks Corp. 0.827373536
Bed Bath & Beyond Inc. 0.771846533
Gap Inc. 0.736541932
Marriott International Inc. Cl A 0.563996415
AutoZone Inc. 0.540791983
H&R Block Inc. 0.521129121
Macy's Inc. 0.516420909