3 Stocks to Short for the Shutdown

The budget argument continues, the debt ceiling deadline nears ... and the shorts are finally asserting themselves

    View All  
3 Stocks to Short for the Shutdown

Cemex

100713CX 300x247 3 Stocks to Short for the Shutdown
Click to Enlarge
The longer the U.S. government shutdown continues, the more painful the drag on Q4 GDP growth will be. According to Bank of America Merrill Lynch, a one-month shutdown would be enough to result in an outright contraction in the economy.

That’s bad news for economically sensitive materials stocks like Cemex (CX), which is drifting lower after forming a double-top pattern in May and August. Shares are threatening to fall through their 200-day moving average and return to their June lows — which would be worth roughly a 16% gain to shorts from here.

I’ve added all three to my Edge Letter Sample Portfolio as short possibilities.

Anthony Mirhaydari has recommended short positions in CX, SNE and HPQ to his clients.


Article printed from InvestorPlace Media, http://investorplace.com/2013/10/3-shutdown-stocks-to-short-hpq-cx-sne/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.