Tuesday, December 23, 2008

Stocks: Short General Mills (GIS)









Just thinking out loud.. do not follow this advice!!  Here's the case to sell it short:

1. Market bias is down
2. Staples have outperformed and due to correct
3. Ag products at recent lows already, so costs may rise from here.
4. More competition for breakfast products
5. Cramer likes GIS
6. Teresa Lo has cautioned on GIS
7. Price is at 50-200 MA downward cross

Conclusion:  look for entry point for short near 50-day MA or downsloping resistance, approx $59.
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UPDATE at 11:16am

GIS has hit a short-term overbought condition at 59.17, which was a great entry point for a short position.  Anything over 59 looks okay.





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