• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

Bearish Bets: 3 Stocks You Should Consider Shorting This Week

These recently downgraded names are displaying both quantitative and technical deterioration.
By BOB LANG
Dec 18, 2022 | 10:30 AM EST
Stocks quotes in this article: YELP, HCI, DK

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.

Yelp Needs Help

Yelp Inc. (YELP) recently was downgraded to Hold with a C rating by TheStreet's Quant Ratings. 

The operator of an Internet platform that connects consumers with local businesses failed miserably on earnings. That big bar down was the day; the stock followed through lower and continues to make a run toward the summer lows.

There is plenty of momentum to the downside. Volume trends are bearish while money flow is weak. The gap is formidable resistance, but so is the middle bar, and the cloud is red and widening. You don't need much more description here -- bearish. Take a short play and ride it to $22, but place a stop at $33 or so just in case.

HCI Group Struggles

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

This chart of the property and casualty insurer shows a definitive trend of lower highs and lower lows, a bearish trait. HCI tried to recover in November but the stock has fallen back and is making a run toward the October lows.

Money flow expanded, but notice the Chaikin Money Flow (CMF) at the bottom is starting to falter. Also, the Relative Strength Index (RSI) is bending lower at a steep slope -- not a good sign. We could see a break of the triangle (yellow) in days, then a move lower. Target the $27 area, put in a stop at $42.

Delek Heads Downstream

Delek US Holdings Inc. (DK) recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings. 

The stock of the integrated downstream energy business is bouncing around here, but notice it has not rallied with the market over the past few weeks. That's a telling sign of weakness.

Delek is hanging around the 200-day moving average and is likely to fail miserably as money flows out of the name. Volume is up and is trending bearish while money flows are negative, too. Notice the cloud has just turned downward, and a break of this bear flag would spell trouble. Target the $22 area, put in a stop at $33.

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 had no positions in the stocks mentioned.

TAGS: Short-selling | Investing | Stocks | Trading | Bearish Bet | Consumer | Energy | Financial Services | Media | E-Commerce | Oil Equipment/Services | Real Money

More from Stocks

Sealed Air Is Ready to Pop

Paul Price
Jan 27, 2023 7:00 AM EST

Just like its bubble-wrap, Sealed Air Corp. is ready to make some noise. Let's see how to play it.

The Market Is Embracing a Goldilocks Scenario for Now

James "Rev Shark" DePorre
Jan 27, 2023 6:34 AM EST

The belief is that inflation isn't too hot and economic growth isn't too cold, though the bears argue this view is unrealistic.

Nvidia's Ready to Move, So Don't Get Left in the Ray-Traced Shadow

Ed Ponsi
Jan 27, 2023 6:00 AM EST

Here why this tech name should be back on your radar -- and why you should question downer economic forecasts.

Chevron Is Not Only Greasing the Wheels, It's Turbocharging Them

Jim Collins
Jan 26, 2023 5:07 PM EST

Let's look at why CVX's buyback news is a big deal for investors.

Traders Hold Their Noses and Buy

James "Rev Shark" DePorre
Jan 26, 2023 4:27 PM EST

The dull market got a boost from Tesla, but this is not the kind of action we want to see.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 03:06 PM EST BOB LANG

    LEAPS Webinar

    This week, I offered a free webinar session talkin...
  • 02:53 PM EST REAL MONEY

    LIVE EVENT: Chris Versace and "Sarge" Guilfoyle Share Their Stock Market Insights

    This Monday, Jan. 30, at 12 p.m., our very own exp...
  • 04:58 PM EST REAL MONEY

    The Latest AAP Podcast!

    Listen in as AAP Tackles Earnings, the Fed, Recess...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login