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 Friday 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.
Expedia
Expedia Group Inc. (EXPE) recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.
This online travel company has been a disaster du jour since reporting a big miss earlier this month on earnings. That money flow is bearish and quite scary.
One may think this is the kitchen sink and it's time to buy, but that would be the wrong reasoning. The Relative Strength Index (RSI) is awful and embedded, too, meaning any rally is bound to be sold aggressively.
Moving average convergence divergence (MACD) is on a sell signal and the cloud is pointing lower. Any rally is a short, but I suspect this stock falls into the $80s before long.
Enphase Energy
Enphase Energy Inc. (ENPH) recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.
This provider of energy management solutions is flirting around with the 200-day moving average here, a dangerous spot. With high-volume selling you would think a washout was at hand, but that is not the case.
The stock is struggling and may see a sharp pullback to the low teens. Money flow is as bearish as can be, and the cloud is weakening and red.
This is a good short here, and even better when it breaks the 200-day.
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.
