• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

Bearish Bets: 2 Stocks You Really Should Consider Shorting This Week

These recently downgraded names are displaying both quantitative and technical deterioration.
By BOB LANG
Oct 17, 2021 | 10:30 AM EDT
Stocks quotes in this article: NUS, ADUS

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.

Nu Skin Enterprises

Nu Skin Enterprises Inc.  (NUS)  recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.

The maker of personal care and wellness products is stuck in a miserable downtrend. It might be over, but notice the poor money flow and the tepid response to the Relative Strength Index (RSI) bottoming.

Could this stock bounce around the bottom for a bit? Sure it can, but the trend is down and we follow trends. The stock is well under all the moving averages, so there is resistance on any move back up.

Any rally here could be a good short opportunity; target the low $30s but put in a stop at $48 just in case.

Addus HomeCare

Addus HomeCare Corp. (ADUS)  recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.

This provider of home care services started rolling over in early September with some poor price action, but the high turnover started a month earlier. Money flow is bearish, we have a Moving Average Convergence Divergence (MACD) sell signal to work from and the stock is well under all the moving averages.

When the stock market is acting poorly and other names are worse, we say these names have poor relative strength. That can be seen in the top pane (RSI). These are often good stocks to short toward lower prices.

Put in a stop at $81, but let's target the mid-$60s here.

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.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, Lang and Trifecta Stocks had no positions in the securities mentioned.

TAGS: Short-selling | Investing | Stocks | Technical Analysis | Trading | Bearish Bet | Quant Ratings | Trifecta Stocks | U.S. Equity

More from Stocks

The Bears Just Moved Into Wall Street

James "Rev Shark" DePorre
Sep 22, 2023 4:26 PM EDT

Technically, the bears are in control of this market now.

Don't Be a Sap and Step Into a Value Trap

Bret Jensen
Sep 22, 2023 12:30 PM EDT

There are plenty of stocks that look like value plays but aren't as the market continues to drag more share prices down.

My Stock Pick for the Rest of 2023? The Big 'B'

Stephen Guilfoyle
Sep 22, 2023 11:17 AM EDT

Here's why I'm going with a diversified value name.

Stocks May Bounce, but This Is Far From an 'All Clear' Signal

Guy Ortmann
Sep 22, 2023 10:15 AM EDT

We suspect any bounce would likely be one within an ongoing correction.

The Probability of a Selloff Is Greater Now Than at Any Point This Year

Ed Ponsi
Sep 22, 2023 10:00 AM EDT

Selling by skilled traders who are reading the technical signs and are trying to cut their losses could propel stocks even lower.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 12:20 PM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Trading in Multiple Time Frames
  • 10:24 AM EDT BRUCE KAMICH

    This Could Get Messy

    A number of key stocks are getting close to import...
  • 01:41 PM EDT CHRIS VERSACE

    Latest AAP Podcast With Helene Meisler!

    Listen in as the Action Alerts PLUS podcast talks ...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login