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.
El Pollo Loco
The quick-service restaurant chain was punished on an earnings miss, with massive volume as the stock was distributed heavily. As usual in these cases, the stock failed to rally and now all the momentum has shifted to bearish.
The November low held, but any rally to the 200-day moving average (around $13.50) is a good short chance. If the market gets weak this stock is vulnerable to more selling.
Even a name change from Coach hasn't been a positive for this high-end accessories retailer. Tapestry continues to struggle and the chart reflects it.
Poor relative strength plus lower highs and lower lows have this stock on its heels. The cloud has been negative for quite a while, and the December lows are now in view. I suspect they won't hold and this stock will be headed to the $20s.
It currently is riding the 10-day moving average to lower prices.
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.