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.
There's been no defense for this defense and aerospace giant as General Dynamics has fallen over the past month. Indeed, the bullish setup was there until a peak at the 200-day moving average in June, and then the selling commenced.
Money flow is bearish and moving average convergence divergence (MACD) is on a sell signal. The cloud is about to twist bearish and some support lies around $130, a good 12% lower. Target that area but put in a stop at $155.
With low interest rates one would think real estate investment trusts would be a good bargain with high yields, but that isn't the case here. This name has trouble written all over it, and even the March lows are in play.
With some heavy selling over the last month, EQR could be ready to break that strong support at $56. Below that level is the aforementioned March lows around $50. If short, target that area but put in a stop at $61.
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.
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-- Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.