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.
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 online exchange company has been floating downward since peaking in June, with enormous volume days to the downside. Momentum is quite bearish here and even though the stock rallied up post earnings there is no support.
The bands are wide and we could see much more violent action lower. This is a good short opportunity.
Equifax has fallen sharply this month on a major gap down from about $115, quite a ways from the current price. In fact, we see a bear flag setting up here, a good spot now to put a short on. Moving Average Convergence (MACD) is still on a sell signal and momentum indicators are quite oversold.
The downtrend line is in place, resistance even higher than the gap. If the recent low does not hold this stock will likely go even lower.
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.