Each week Trifecta Stocks identifies names that look bearish and may present interesting investing opportunities on the short side.
Using technical analysis of the charts of those stocks, and, when appropriate, recent actions and grades from TheStreet's Quant Ratings, we zero in on five names.
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.
Universal Display
Universal Display Corp. (OLED) recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.
The developer of organic light-emitting diode technology is weak and has been since peaking in late summer. A series of lower highs and lower lows plagues this stock as money flow is very weak.
The cloud is red, the Relative Strength Index (RSI) is pointing lower and moving average convergence divergence (MACD) is poor. Price again rules, though, and with lower highs in the chart we could see another leg lower soon.
Target the $120 area, but put in a stop at $170.
Dish Network
Dish Network Corp. (DISH) recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.
This provider of pay-TV services was hammered in early November and just continues to shed its value. Money flow is quite bearish while the stock makes lower lows. The RSI is poor and the cloud is red. We don't see much recovery here.
Dish could make a run into the $20s, but put in a stop at $36 just in case.
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 other stocks we think look good short this week and how to play them? Click here for a trial subscription to Trifecta Stocks and get "Bearish Bets" each week!
-- Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.
