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.
Chevron
Chevron Corp. (CVX) is rated a Buy with a B rating by TheStreet's Quant Ratings.
Oil has been under pressure for more than a year and that's reflected in the big oil names. This one has an ominous "M" pattern that has yet to play out.
We see more downside coming here, at least a test of the October lows and perhaps a bit more, to the $105 area. The Relative Strength Index (RSI) is horrible and money flow is bearish.
Moving average convergence divergence (MACD) crossed over in early January and is on a sell signal. CVX is oversold but may stay that way a bit longer.
Boeing
Boeing Co. (BA) is rated a Hold with a C+ rating by TheStreet's Quant Ratings.
A miserable chart here as the aircraft maker continues to raise more red flags. Money flow is bearish, the cloud is red and expanding and MACD is again on a sell signal.
BA's Relative Strength Index (RSI) is poor but very oversold; we might see a rally back to $320 or so, but that would be a chance to short this stock again.
Even right now could yield some gains if the stock breaks $300.
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.
