These recently downgraded names are displaying both quantitative and technical deterioration.
Stocks quotes in this article:
Each week Trifecta Stocks identifies names that look bearish and may present interesting investing opportunities on the short side.
Using technical analysis of the charts of those stocks, and, when appropriate, recent actions and grades from TheStreet’s Quant Ratings, we zero in on five names.
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.
The provider of anti-fraud and digital transaction technology has been showing bearish qualities for months; look at the money flow for that description. We see the Relative Strength Index (RSI) is about to roll over and that monster gap is acting as huge resistance.
The cloud is red and the triangle created is not bullish; rather, a break to the downside should be seen here and that would mean a move toward the $12-$13 area.
If short here, put in an aggressive stop at $23.
Liberty Oilfield Services
The provider of hydraulic fracturing and wireline services has been slammed lately and is trying to make a recovery. However, the recent pull-up has been on poor turnover; it’s just a matter of time before this name rolls over again.
With markets at new highs should stocks be near their lows? Not if money is in the name, and that clearly is not the case here.
RSI is stymied at the 50 level and the cloud is red as could be, and expanding. All bad for Liberty; short to the single digits, but place a stop at $13.50.
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 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.
Get an email alert each time I write an article for Real Money. Click the ” Follow” next to my byline to this article.
Real Money’s message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site’s moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation.
If you have questions, please contact us here.
Thank you, your email to has been sent successfully.
We’re sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.
Please Join or Log In to Email Our Authors.
Email Real Money’s Wall Street Pros for further analysis and insight
Already a Subscriber? Login