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.
Canopy Growth
Canopy Growth Corp. (CGC) recently was downgraded to Sell with a D+ rating by TheStreet's Quant Ratings.
Pot stocks have been struggling in the second half of 2019, and this one is a poster child of misery. The trend is in place, and it's all downhill. At some point it will stop, but for now it continues to be a great short opportunity.
Money flow is poor while the Relative Strength Index (RSI) is steep and bending lower. The cloud has been red and pointed lower for months; Canopy Growth could find itself in the mid- teens before too long.
Stops are at the top of the channel, around $22.
Carnival Corp.
Carnival Corp. (CCL) recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.
While consumers may still be robust spenders, some of the travel companies are not so sure. Carnival got hammered over the last two quarters and continues to make lower lows.
The recent bear flag (hockey stick) is a good chance to get a short working, around the low $40s area. The cloud is red and widening while relative strength is weak with a very steep angle.
More downside is coming.
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.
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.
