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 stock has lost a considerable amount of weight lately (sorry) after a big selloff post-earnings on Nov. 2. The shares got pounded on that day on strong volume, and the sellers have not let up. Indeed, this stock is down hard for 2019 even as the markets are higher.
No surprise the Relative Strength Index (RSI) continues to bend lower with a steep slope. Any rally in the stock is worth a short chance. Notice the opportunity back in late December with a modest rally upward; the stock then continued lower.
Laboratory Corp. of America
The stock of the independent clinical laboratory company caught resistance at the upper Bollinger band last week and was rejected on higher turnover. The RSI also has run into resistance around the 50 level, while this recovery rally has been made on very low turnover.
Price action speaks loudly, but if a lower high comes in here there is a test of the December lows coming. It's a low-risk short here with a stop where the arrow is pointed.
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.