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 three 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.
Don't Bank on Synovus Financial
Synovus Financial Corp. (SNV) recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.
Here is another bank holding company that has shown negative qualities. Synovus has fallen sharply on strong turnover, with a moving average convergence divergence (MACD) sell signal and bearish money flow. Even a recent pull-up in price has been on lousy volume; on the flip side, the big volume bars reflect heavy selling. That would be big institutions cutting the name aggressively.
We see more downside here, and the cloud is red. If short, target the mid $20s, but put in a stop at $32 just in case.
Vizio Sounds Like a Short
Vizio Holding Corp. (VZIO) recently was downgraded to Sell with a D+ rating by TheStreet's Quant Ratings.
The maker of smart televisions and sound bars clearly has broken the box of a moderate trading range and is moving to the downside quickly. Money flow is starting to fade as well, while the Relative Strength Index (RSI) is bending lower, which tells us more downside is coming its way.
Vizio's chart shows a bearish crossover on the MACD, strong volume bars on down session and volume trends that are bearish. There is nothing left to do here but put in a trade idea. Short VZIO at just under $9 and target the $7 area; put in a stop at $10.
Alexander's Inc. (ALX) recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.
Alexander's is in commercial real estate, and higher interest rates present many challenges for this group of REITs. ALX shows a steep slope down in price, with lower highs and lower lows as the stock has cascaded downward with strong volume to boot. That means big institutions are selling, and basically they are not finished.
Money flow is uber-bearish here, the cloud is red and every time the stock tries to move higher a big red bar appears. The stock continues to get whacked, so a good short play is in order right here. Target the $165 level, put in a stop at $205.