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 Friday that look bearish.
Textron
Textron Inc. (TXT) recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.
The aviation and defense giant has nearly given up all the nice gains from the early September rally. With a downtrend line that acts as resistance, this stock has more down to go.
The Relative Strength Index (RSI) is flat on its back here, and the cloud is red and widening out. Volume has been expanding while the stock remains in a downtrend, with lower highs and lower lows.
We'll see if the August lows hold, but I'm not so sure of it.
Sinclair Broadcast Group
Sinclair Broadcast Group Inc. (SBGI) recently was downgraded to Hold with a C rating by TheStreet's Quant Ratings.
The television broadcaster has been a miserable stock to own since breaking down in early July. Lower highs, lower lows and a really poor money flow reading with a red cloud are going to get it done for the short-sellers.
This stock may bounce back, but I wouldn't count on it anytime soon. A move up to the 20-day moving average (around $34) would be a good place to enter a short. But with this stock at 52-week lows and the market at all-time highs, it's not promising for this name.
A target is into the mid-$20s.
-- Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.
