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.
Universal Display
Universal Display Corp. (OLED) recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.
This supplier of organic light-emitting diode (OLED) display materials has hit some major resistance, and the chart is showing there is some downside to come. Universal Display has some bearish money flow here and the Relative Strength Index (RSI) is steep and sloping downward; there is awful price action.
Even on the up days for the market this stock acts poorly. Moving average convergence divergence (MACD) is on a sell signal. It's a volatile name, but short is the right play.
Put in a stop at $180 and ride it to the $140s.
F5 Networks
F5 Networks Inc. (FFIV) recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.
This provider of network application services has been under pressure since reporting a subpar quarter in July. The painful move down has been on heavy turnover, with the big institutions distributing the stock.
Money flow is poor and the MACD is also on a sell signal. The cloud is also red, which means the trend is clearly down. The recent up days have been on low turnover -- not good.
Short to the $100 area, but put in a stop at $130.
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.
