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.
The operator of a self-service data analytics software platform delivered strong results recently but fell hard to the 50-day moving average. We normally would call this a garden-variety pullback, but there seems something more dubious here.
Volume has been quite heavy lately on the sell days, and the stock rallied nearly 100% from the October lows. Seems time for a rest, and there is room to fall toward the 200-day moving average around $53, which would be 20% lower.
Moving average convergence divergence (MACD) is on a sell signal.
This biotech is a familiar short name; we profiled it twice and you would have made nice gains if you shorted it.
Halozyme now has a bearish crossover on the MACD, with support on the 50-day moving average, but look at that bar from Wednesday and the heavy distribution. This stock could roll over to the lower teens before too long; a follow-through day cinches it.
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.