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.
Baozun Inc. (BZUN) recently was downgraded to Sell with a D+ rating by TheStreet's Quant Ratings.
This Chinese e-commerce concern has been in a severe downtrend this year, with no relief in sight and few buyers interested. That spells trouble.
The stock is making a run at single digits and just might get there soon. The Relative Strength Index (RSI) is poor and the cloud is red, with strong recent volume tilted toward the bearish side.
If short, put in a stop at $16 and target the $8 area.
1-800-Flowers.com Inc. (FLWS) recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.
This online flower and gift retailer is not blooming right now. The chart is atrocious and clearly shows a stock in distribution.
1-800-Flowers recently fell on some heavy volume -- not what you like to see when the rest of the market is advancing. RSI is sloping downward and is steep, telling us this stock may have plenty more down to go. Also, moving average convergence divergence (MACD) is on a sell signal while money flow is bearish.
Target the $18 area, but put in a stop at $31 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.