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.
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.
Freeport-McMoRan
Freeport-McMoRan Inc. (FCX) recently was downgraded to Sell with a D+ rating by TheStreet's Quant Ratings.
Freeport-McMoRan is a pre-eminent miner of copper and gold, but it also owns oil properties. The stock was pounded hard in March with the big drop in commodities but started to rally in April with the markets. Unfortunately, it appears the rally is going to stall out.
Money flow is poor and the cloud, while red, is good resistance here on the stock. Volume has been moderate but higher on the down sessions. This is good for a short to the $6 area, but put in a stop at $10.50.
Ford
Ford Motor Co. (F) recently was downgraded to Sell with a D rating by TheStreet's Quant Ratings.
The legendary automaker has put together a nice bearish flag here on accelerating sell volume. That is a bad combination when price action is poor, as we have seen.
Money flow is weak and the cloud is massive red. Even after this recent pull-up in price this stock is likely headed lower.
Recent lows hit around the $4 area, and Ford could make a return trip if that triangle breaks. Very bearish.
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 three 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.
