While we will not be weighing in with fundamental analysis, we hope this piece gives investors interested in stocks on the way down a good starting point to do further homework on the names.
Skechers got blasted last month as the company once again missed earnings. This stock tends to move in a big way on events, so that was no surprise. Momentum is starting to turn down here and while volume is not high, price action is suspect. Relative Strength (RSI) is flat to poor.
A move back to the lower Bollinger around $27 would be a good time to short the stock. Resistance lines are drawn and show a brick wall at $30.
Brinker was on a nice roll this spring making a high in June, but it has now rolled over, along with the indicators. Notice the downtrend channel as price slopes toward the 200-day moving average (arrow). This series of lower highs could prove to be quite a mess if that 200 MA is penetrated.
Momentum is waning and is barely clinging to modest/neutral, but a move lower to the bottom of the channel is likely, about 5% down from here. This is a good short to $41.
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.
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-- Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.