Despite a number of renewed uncertainties, all the major U.S. equity indices moved higher last week.
Are we getting ahead of ourselves? At the very least, based on technical and quantitative analysis, it looks like several individual stocks are vulnerable to further declines.
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.
This cybersecurity software firm has a mildly bearish look to its chart, but the sharp decline the previous week tells us more down movement is probable. The moving average convergence divergence (MACD) has rolled over bearish, with the stock now at the apex of the triangle.
We can see this stock falling through here and really sliding downward toward the low $80s, but put in a stop at $109 just in case.
Here's another big-box retailer that has seen better days. This stock was pounded hard and recent earnings were awful. Notice how bearish money flow has been? Big institutional players are getting out of Kohl's.
The Relative Strength Index (RSI) can't seem to get going, and the MACD is about to roll over.
KSS is a a good short to the April lows around $12, but use a stop at $20 just in case.
National HealthCare Corp.
The stock of this operator of skilled nursing and assisted living facilities has been in a miserable downtrend, with the channel well-defined here. Money flow is bearish, too, and the cloud just turned bearish.
Lower highs in the RSI and a steep slope have this stock in a world of trouble. Downside is probably to the March lows, which is about 8% lower from here.
If short, put in a stop at $70 but ride it down to low $50s.
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.