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.
The fun run may be over for Sunrun. The stock of this provider of residential solar energy systems was a firecracker early this year, rising sharply on good turnover and strong technicals. Such is no longer the case as the bears have taken over. Lower highs and lower lows and bearish money flow have ignited a swarm of sellers.
The June test of the 200-day moving average was rejected soundly. This stock is in trouble if it breaks $42, which we think will happen soon. Look for a move to the mid or low $30s
There's plenty to be had on this short play. Put in a stop at $48.
Red River Bancshares
This bank holding company has been hit hard recently with higher volume on the down sessions. That does not bode well until the stock can put in a bottom.
Red River shows a highly bearish condition with weak money flows, a steep, down-trending Relative Strength Index (RSI) and a red cloud. Add it all up and this stock is in the house of pain.
With more downside to come, put in a stop at $52 (below the 200-day moving average) and ride this into the $30s.
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.