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.
A recent high was just too much for the bulls to celebrate in this provider of outpatient diagnostic imaging services. The recent decline has been on whopping volume; this stock is trending downward in a big way. Money flow has turned bearish while the steepness in the Relative Strength Index (RSI) is evidence of more downside to come.
The 100-day moving average is close (gold), but this stock is in distribution now and there is little to support it until the sellers are finished.
Set a target of the 200-day moving average at $24 but put in a stop at $33.
This computational software provider has fallen sharply on pretty big turnover. The series of lower highs and lower lows puts Schrodinger firmly in the bearish camp.
Money flow is bearish, though only modestly. RSI is steep and pointing lower, the cloud is red and the recent lows in May have been breached.
We could see a move to the mid $40s or so, so target the $40 level but put in a stop at $65. This is a very bearish name 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.
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-- Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.