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You Are Here: Home > Articles > Commentary > Bookkeeping: Covering Best Buy (BBY) Short

Bookkeeping: Covering Best Buy (BBY) Short
Apr 27, 2009

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Trader Mark

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I am covering one of the 3 retail shorts, Best Buy (BBY) for "flat" - swine flu is good for shopping. How? I don't know - but the market speaks in tongues. And "flat" is the new +60% on the short side of the ledger so I'll claim victory. The stock is being bought on each dip to the 20 day moving average; identical to the S&P in fact. As I wrote in the weekly summary I am pulling back some short exposure until I see this market below the 50 day moving average. (Below S&P 825)
I cut back on Macy's (M) and Bed Beth & Beyond (BBBY) before people run into them... the most resiliant consumer on Earth apparently does not even need work to shop. It's in our DNA people. This group is going to be one fantastic short once this fantasy of the consumer is back is blown apart and people expect more than -6% same store sales and tons of heads rolling at every company to "make the number". But later in time....
All news is good news; even swine flue. It allows lagging sectors like healthcare to participate in the rally.
Remember BioCryst (BCRX) and the CEO who denies they will benefit from swine flu? Up nearly 100%. Bet on red. Or black. Just bet. I said it had a chance of 250% gain, almost halfway - tomorrow should get it there.


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