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.
Grand Canyon Education
This provider of post-secondary education services is just about ready to roll over hard. With a break recently of the 200-day moving average there is little help here. Moving average convergence divergence (MACD) is on a sell signal while money flow is very weak.
There is some support around the $75 level but that is unlikely to hold, and a better target is the low $50s.
Ride it down to that level but put in a stop at $88.
The financial services holding company shows a bear flag forming after a waterfall drop off the August highs. Money flow is weak and the cloud is bearish; a break of the recent low around $12 would be ominous.
Support is all the way down to $8 or so. It might take a while, but this stock looks headed toward those March lows. The Relative Strength Index (RSI) is weak here, too, but if short put in a stop around the $14 level and prepare to ride it out.
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.