We don't often see big wide swings from the utilities, but this one has them. Volatility is elevated as the fires in California put its liability to the test.
The chart pretty much tells the story, too, with some bearish signs of things to come. The cloud is red and bearish while money flow has been leaking. Volume has been low on this recent check-back to the 50-day moving average; this looks to be stalling.
EIX is a good short right here with a stop at the $72 level.
"Vonage the dog" as Jim Cramer used to call it! The stock of this provider of cloud communication services was pounded in early November on massive volume, and look at how long the money flow has been negative -- for nearly six months.
Institutions are staying away from this name and for good reason -- it is not a stock to be owned! The cloud is red and the moving average convergence divergence (MACD) is on a double sell signal.
The recent rally is a good short chance.
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-- Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.