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 biopharma company's stock is in big trouble here, with back-to-back red candles on big volume. The sellers may be drying up for now and there could be a bounce, but that would be a good short opportunity. Even here we find the downtrend is powerful, with the MACD (Moving Average Convergence Diveregence on a sell signal and money flow quite bearish.
The cloud just turned red, and believe it or not we now see the March lows as a strong possibility (around $30). That would be a big gainer to the downside; if short, put in a stop at $46.
After some mediocre earnings, this maker of Roomba floor vacuuming robots is about to be swept under the rug. Money flow has been bearish for weeks, and the 50-day moving average is holding for now. The weight of the sellers is heavy, though, and this stock could break hard to the downside.
There is plenty of room to fall; the 200-day moving average is at $56, and that's a good first target. MACD is on a sell signal. Note the heavy turnover lately, which indicates big money is exiting.
If short, put in a stop at $85.
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.