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.
TripAdvisor
TripAdvisor Inc. (TRIP) recently was downgraded to Sell with a D+ rating by TheStreet's Quant Ratings.
This online travel company recently posted weaker-than-expected earnings -- not a surprise as hardly anyone is traveling these days. The stock has been in a nosedive for months, but this recent run downward has been on higher turnover.
The Relative Strength Index (RSI) has rolled over, as has the Moving Average Convergence Divergence (MACD), which is a bearish (ominous?) sign. The March lows are not far off, and if those get blown out TRIP shares are headed for single-digit status.
Buyers are nowhere to be found, but put in a stop at $19.
JPMorgan Chase
JPMorgan Chase & Co. (JPM) recently was downgraded to Hold with a C rating by TheStreet's Quant Ratings.
The biggest and best bank of them all is taking its hits lately. JPMorgan Chase's chart is atrocious, with momentum really poor.
RSI has started to roll over here, and the cloud is red and expanding outward -- this is a bearish sign. The March lows are pretty close here at the high $70s; that's a good target.
If short, put in a stop above at $92, but this stock might have another leg lower beyond the March lows.
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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