5 Consumer Stocks to Short
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Stock to Short #3: Coach (COH)
Coach (COH) has very fine products and pretty good management, but terrible timing, as the company expanded just as the recession hit. Does anyone really need anything sold there? The high-end accessory maker is definitely in the wrong part of the consumer segment as we work through this recession.
The chart is a bull's dream. COH had its golden cross -- the 50-day moving average crossed the 200-day moving average -- which is a very bullish signal. But the stock is rolling over, and soon it will be a short investor's dream. Take a hard look at put options once COH breaks below its 50-day moving average.
Learn more about how moving averages work.
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