It can be tough to get comfortable with shorts in a market that is already down significantly this year: a lot of the 'bad stuff' - as well as a ton of good stuff - has already been obliterated to the point where shorting down here can be pretty hairy. As such, when resetting shorts in this kind of environment, I try to look as much as possible for uncorrelated and/or idiosyncratic trades for which the outcome - whether it works or not - is as much divorced from a market snap-back as possible.
I think Advanced Drainage Systems (NYSE:WMS) sets up pretty nicely as a medium-term short from this perspective. As we shall see, it presents an
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|