A short strategy, here, is all in the tealeaves. CVS reports 2011 yearly numbers on 2/8 before the bell. If the CVS C/C highlights growth from cannibalizing Walgreens ESRX lost client base, look out below. The other immediate factor will be Rite Aid's January sales figures which should come out around that same date, with impact from marketshare gains potentially less than CVS data, but another page in the book.
I have decided not to take a short position on Walgreens at this time. This has less to do with equivocation on a negative view towards WAG and more to do with two plays in alternative energy that I prefer to pursue with my quarterly dividend gains from my extensive mReit holdings. I am holding firm on my other positions in RAD and Walmart. And cash = 40%. The cash will remain reserved awhile longer.