The Bloodbath to Come

I spoke earlier this week about my worries about retail stocks this week. So far the RTH (an exchange traded fund that tracks retail stocks) is off only slightly for the week. Starting Wednesday, retail will let loose. Given the recent jumpiness by the markets I am more than happy to stay far away from that sector.

Today Cramer went out of his way to recomend a retail short in UARM. Now I wouldn't touch that stock from the short end just yet, but if you can get some of the momentum out of it, I think he may be on to something. Check out what he said right here:

http://www.thestreet.com/funds/madmoneywrap/10300973.html?partner=msn

Another stock I would avoid shorting would be AEOS. Too much risk with that name (and by risk I mean the odds are it goes higher).

Drugs and Food and Oil. Pretty much your only safe sectors right now.

ZUMZ may be breaking down because of weakness in retail and VLCM. Check it out and be careful out there. Don't say I didn't warn you.