Fear no rally

It’s time to start looking for stocks to short again.

I like commercial real-estate as a short, mostly because I understand that businesses are moving OUT of properties, not into them.  That, and the CRE guys got drunk on leverage a few years ago and the bills will be coming due shortly.  The Fly has a much more in depth look at the sector.

In addition, I’m noticing that the financial stocks that sprung this rally are now starting to tire, as of today.  The big losers BAC, C and possibly Lehman brothers or Bear Sterns (oops, did I say that?) look ripe for short here as the holders of these positions cannot possibly be unyielding hands.

Basically, the entire market looks almost as overbought now as it was oversold when I “called” the bottom at SP 670.  Sure, it could rally another 10%, go positive on the year and rip my face off, but really, I have a certain callousness to losing that makes that possibility irrelevant and a certain history of being right that makes it unlikely.

In addition to the sectors above….HIG is dead.  I believe this is the company that had a giant moose walking through a gym while John Wooden talked about winning, or some other LSD-induced nonsense designed to keep us unaware of the fact that this was little more than an over-leveraged hedgefund with monthly deposits from the masses.

Carry on.