Using recent actions and grades from TheStreet Quant Ratings and layering on technical analysis of the charts of those stocks, Trifecta Stocks identifies 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.
AN stock has been in a miserable downtrend, the channel firmly in place. A series of lower highs and lower lows plagues this name, which had been a leading stock until this year started.
Indicators are well oversold herald the Relative Strength Index (RSI) is in poor shape. Moving Average Convergence Divergence (MACD) is also on a sell signal, but any rally to the top of the channel is a sale.
Red Lion Hotels
This hotel chain is just starting to head into a vicious downtrend, and there could be more to come. The volume trends have been intense here since the stock peaked in mid- August. The MACD rolled over then and has continued lower, and the moving averages are now quickly heading downward.
This commentary is an excerpt from "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.