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.
Olin Corp.
Olin Corp. (OLN) recently was downgraded to Sell with a D+ rating by TheStreet's Quant Ratings.
The maker of chemical products has had trouble making its way to the old highs. The downtrend channel is intact even though Wednesday saw a modest break higher. Money flow is distinctly bearish, though, and volume trends have been weak.
The cloud is about to twist red here while momentum continues to wane. If short, put in a stop around $13.60 but ride it for a move down to the single digits.
Expedia
Expedia Group Inc. (EXPE) recently was downgraded to Sell with a D rating by TheStreet's Quant Ratings.
This online travel firm took a brutal beating when the economy fully shut down. Yet even after a modest comeback Expedia is nowhere near the old highs. The recent move at the 100-day moving average was rejected soundly with strong volume and on an up day for markets.
Money flow is weak while volume trends are bearish. If short, put in a stop around $90 and ride this one down to $60, and then a bit lower toward $50.
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.
