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.
Everyone used to wait for Alcoa to kick off earnings season. Well, these days, the aluminum producer is a shadow of its former self.
The chart shows very weak price action, and with the market and other commodity names starting to rise it's a tell when a stock such as this former leader doesn't follow suit.
Notice the volume has risen on days when the stock is down, a poor sign. The cloud is bearish, too, and we think Alcoa follows the lead of the yellow bars.
Walgreens Boots Alliance
The pharmacy giant was a disaster last Tuesday and continues to be. I looked back and saw the last time Walgreens was at this level was in 2014! Amazing how much this stock has fallen since early December, around 35%.
Moving average convergence divergence (MACD) just went on a sell signal, and Wednesday showed follow through.
We suspect the stock may bounce around here before falling a bit more. The cloud is super bearish and getting worse.
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.