Friday June 05, 2009
Bernie Schaeffer selects stocks based on a combination of fundamental, technical and sentiment-based metrics.
His research leads to long trading positions for his Schaeffer's Master Portfolio and short trades for his Schaeffer's Short Selling services. Here's a look at 4 of his latest ideas.
"I initiated a long position in Netflix (NASDAQ: NFLX); its price action has been strong, with the stock up more than 35% year-to-date. The stock recently pulled back to support from key intraday trendlines that we follow, presenting a potential buying opportunity.
"Short interest for NFLX is high, with more than 32% of the stock's float sold short. A continued rise in the shares' price could spark a short-covering rally. Upgrades are a possibility for NFLX, as only 4 of the 15 analysts covering the stock rate it a 'buy.'
"I also initiated a long position in VMware (NYSE: VMW), which has gained more than 30% year-to-date. The stock has also pulled back to a key intraday trendline that we follow, presenting a potentially attractive entry point for a long position.
"Short interest for VMW is high, with more than 17% of the stock's float sold short. A continued rise in the stock's price could spark a short-covering rally. Upgrades are a possibility for VMW, as only 3 of the 21 analysts covering the equity rate it a 'buy.'
"In our Schaeffer's Short Selling advisory, I initiated a short position in Exxon Mobil (NYSE: XOM). The stock has underperformed the market during the past few months and is now trading right below potential resistance. With many analysts positioned bullishly, we could see downgrades push the shares lower.
"I also initiated a short position in Apple (NASDAQ: AAPL). The stock has been strong recently, but is now rallying into a huge amount of call open interest at the 140 strike in its June series of options. Optimism heavily surrounds the equity as well, which leaves it vulnerable at this time."
