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.
Tidewater has been in a miserable downtrend since early October and there seems to be no relief in sight. A series of lower highs and lower lows with expanding turnover does not bode well for a comeback here.
Note the oversold condition of the momentum indicators, the %R even offers a chance to put on a short, a modest dead-cat bounce that failed miserably. The 200-day moving average is far away. TDW could be shorted here for a cover into the teens.
Skyworks, a smartphone chip supplier, has been pounded mercilessly since its earnings shortfall in July. That was around the $100 level, and now we are 30% lower in just five months.
There is no relief in sight; a gap lower in early November can't even get filled. Note the $75 level was soundly rejected this week. Any rally up there is a good short chance.
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.