I recently wrote an article about RadioShack (NYSE:RSH), where my main argument for buying was that literally everybody is negative. While this trade is in is still in its infancy, I will illustrate another recent example of a public fade that cashed big profits for those resisted obvious opinion and went against the grain. That is, knowing absolutely nothing about livestock, I wrote about shorting lean hog futures in the face of a virus that everybody said would wipe out the pig population overnight. Of course the fears were overstated as I suspected and I made out like a bandit the next day as prices gapped down.
As a contrarian, I do trade potential popularity for simply being right and making money. It is a tough gig, as I’m sure I will be ripped to shreds by the public commentators for daring to go short Gilead Sciences (NASDAQ:GILD). But nevertheless I am making a small bet that no matter what Gilead’s Q2 results will be on July 23, the stock will likely sell off.
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