Trifecta Stocks is a long-only model portfolio, but we are anxious to give our subscribers insight into stocks that may pose interesting investing opportunities on the short side.
Using recent actions and grades from TheStreet's Quant Ratings and layering on technical analysis of the charts of those stocks, we will identify five names each Friday that look bearish. While we will not be weighing in with fundamental analysis, we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names.
This big biotech/pharma shows a deep downtrend, with lower highs and lower lows. While the group has been mixed, this stock has taken the brunt of selling punishment. As the stock has tried to recover from an early April low we see volume levels are weak, indicative of a lack of institutional sponsorship.
The 200-day moving average (arrow) is going to act as major resistance. If the stock fails there we'll likely see it trade back down to the lower end of the channel. That failure would be a sell signal.
This chip company is a big Apple AAPL supplier, so when news hits for Apple it impacts many names, including Cirrus. The stock is plagued by lower highs and lower lows, and the trend line remains intact.
Note some of the biggest selling took place on days the stock got hammered. That tells us we aren't seeing much interest from the institutional buyers. This stock is likely going lower.
Want to find out the three other big-name stocks we think look good short this week and how to play them? Click here for a trial subscription to Trifecta Stocks and get "5 Bearish Bets" each week!
This commentary is an excerpt from "5 Bearish Bets" a weekly feature sent to subscribers of Trifecta Stocks. Click here to learn more about this portfolio, trading ideas and market commentary product.
-- Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.