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.
Gaming stocks have taken it on the chin lately and Boyd is the poster child. Look at that increased volume during the sell days in October, the price just cascading lower. Moving Average Convergence Divergence (MACD) has pulled up here for a bit of relief, but this rally is just another good short opportunity.
The Relative Strength Index (RSI) sees a roadblock at the 50 level; resistance is all above with the moving averages and downtrend lines.
Dean Foods is heading down the drain in a whirlwind, with gaps down over the past few months amid very heavy volume. Even this week, when the markets were soaring, this stock continues to spiral out of control, no end to the selling in sight.
The downtrend is in place and indicators are embedded. Any rally up (few of them) is a good spot to short.
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 herefor a trial subscription to Trifecta Stocks and get "Bearish Bets" each week!
-- Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.