Each week we identify 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.
Citi Trends Inc. (CTRN) recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.
The value-priced fashion retailer is yet another merchant that has made it onto our short-selling list. Money flow is awful and the channel of lower highs and lower lows is in place.
All the indicators are weak, with money flow bearish and the Relative Strength Index (RSI) on the lows. The cloud is red and expanding, meaning we have more downside to come, if you can believe it.
Let's ride it for a move down to the high $20s; put in a stop at $47.
Masonite International Corp. (DOOR:NYSE) recently was downgraded to Hold with a C rating by TheStreet's Quant Ratings.
The maker of interior and exterior doors had an awful week. The stock really got pounded on Tuesday and followed through the next day, before a slight rebound. Moving average convergence divergence (MACD) is turning lower for a double bearish signal, while money flow is awful.
There is nothing bullish on this chart, but there are plenty of bearish characteristics. We could see this stock make a run to the $70s, but put in a stop at $100 just in case.
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.