Using recent actions and grades from TheStreet's Quant Ratings and layering on technical analysis of the charts of those stocks, Trifecta Stocks identifies five names each Friday that look bearish.
Edison International
Edison International (EIX) recently was downgraded to Hold with a C rating by TheStreet's Quant Ratings.
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 Holdings
Vonage Holdings Corp. (VG) recently was downgraded to Sell with a D+ rating by TheStreet's Quant Ratings.
"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.
Want to find out the three other stocks we think look good short this week and how to play them? Click here for a trial subscription to Trifecta Stocks and get "Bearish Bets" each week!
-- Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.
