Using recent actions and grades from TheStreet's Quant Ratings and layering on technical analysis of the charts of those stocks, Trifecta Stocks identifies five names each week that look bearish.
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.
Cal-Maine Foods
Cal-Maine Foods Inc. (CALM) recently was downgraded to Hold with a C rating by TheStreet's Quant Ratings.
This egg producer is showing a rotten chart, with lower highs and lower lows into the most recent support. Money flow is poor and the cloud is red and expanding. That is bearish, and we should see this break the $37 support here soon.
The Relative Strength Index (RSI) is weak and telling us this stock is not performing well versus the market.
If short, put in a stop at $40 and ride it down to the low $30s.
John Bean Technologies
John Bean Technologies Corp. (JBT) recently was downgraded to Hold with a C rating by TheStreet's Quant Ratings.
The maker of food processing systems and airport ground support equipment is rolling over here, clearly seeing a move to the next level of support (yellow lines). That would be around $75 or so.
Money flow shows a bearish theme and the cloud just twisted red. The Relative Strength Index (RSI) is also poor and the moving average convergence divergence (MACD) is on a sell signal.
All signs point lower, but put in a stop at $95.
Chevron
Chevron Corp. (CVX) is rated a Hold with a C rating by TheStreet's Quant Ratings.
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Big Oil has had its troubles, and Chevron and Exxon Mobil (XOM) are two of the biggest with weak charts. There is no reason to buy these here, and there is some potential downside, too. Crude oil is weak as demand has waned, and money flow for Chevron is really bad.
The cloud is red and the Moving Average Convergence Divergence (MACD) is on a sell signal. The current bear flag is about to resume more downside.
Look for the stock to get to the high $50s. Put in a stop at $75 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.
