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.
Nutrien Ltd. (NTR) recently was downgraded to Sell with a D+ rating by TheStreet's Quant Ratings.
Nutrien Ltd. is a big fertilizer conglomerate, and while the stock had a strong late summer surge that may be ending soon. Money flow ticked lower last week and relative strength has been poor with the markets rallying strong.
Breaking the 20- day moving average was deadly, and now this stock looks headed to the 100-day moving average (gold) and then the 50-day moving average. There is some good downside to be had here.
Put in a stop at $41 and ride it down to $35 or so for nice gains.
Proofpoint Inc. (PFPT) recently was downgraded to Sell with a D+ rating by TheStreet's Quant Ratings.
The data security provider just fell outta bed recently, declining through some decent support in the $100 area. As the stock tries to rally back it seems there are more opportunities to get short.
The Relative Strength Index (RSI) recently was very oversold and the stock rallied up, but just not enough to take it out of a bear trend. Money flow is weak and the cloud is red -- strong bearish qualities on this chart.
The recent rally is a good time to get short, but put in a stop at $102 or so and look to ride this down to the low $80s.
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.