Emerson Electric Co. (NYSE:EMR) — This scientific and technical instruments designer and manufacturer issued fiscal Q2 earnings results that came in well below analysts’ expectations. Weak economic conditions in China and Europe were blamed for the miss. And analysts have lowered their projections for 2012 and 2013.
Technically EMR broke down from a rounding top and support at $45. Support now exists in the low $40s, and that is our target for a short sale. Stop-loss orders should be entered at $50.
As with all short sales, be sure to check with your broker for the ability to borrow the stock. Short-selling is a speculative technique that involves higher-than-normal risk.