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  1. Home
  2. / Investing
  3. / Stocks

Bearish Bets: 2 Stocks You Should Think About Shorting This Week

These names are showing both technical and quantitative deterioration.
By BOB LANG
Apr 05, 2020 | 12:00 PM EDT
Stocks quotes in this article: Z, LH

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.

Zillow

Zillow Group Inc. (Z)  recently was downgraded to Sell with a D+ rating by TheStreet's Quant Ratings.

After a nice bounce from a 67% drop the stock of this online real estate giant start to roll back over last week. Resistance was met at the 200-day moving average, and with that break of the $35 area this stock is destined for much lower prices.

The Relative Strength Index (RSI) is poor and money flow is bearish and getting weaker. Volume on the up days has been poor, and we could see the low $20s before too long. A short here is good; put a stop in at $41.

Lab Corp

Laboratory Corporation of America Holdings (LH)  recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.

The clinical laboratory company's stock has been obliterated, down substantially in March on very heavy turnover. All the momentum gained in the first two months of the year was removed swiftly and on very heavy turnover.

The recent pull-up in price seemed promising, but the bear market had other plans. Nothing is spared in a bear market, and this could be one of the worst in history. There is some room to short here to $100 or even down to $95, but put a stop in at $125 (gap).

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 three 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.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, Lang and Trifecta stocks had no positions in the securities mentioned.

TAGS: Short-selling | Investing | Markets | Stocks | Technical Analysis | Trading | Bearish Bet | Quant Ratings | Trifecta Stocks | Coronavirus

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