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.
This insurance giant appears ready to roll over here. With very bearish money flows and a moving average convergence divergence (MACD) sell signal in place, Travelers has a bit to go before recovering.
The 50-day moving average is holding here as support but that might give way soon. The gaps below need to be filled on the downside; that looks like the $100 level.
If short, put in a stop around $122 and ride it down to that century mark.
This domain name giant has not fared well of late and is about to make a break for it. A recent bust through the 200-day moving average has GoDaddy on the ropes; volume levels have been lower of late but that is not bullish.
Money flow is bearish while the MACD is on a sell signal. The cloud is also negative. This stock easily could drop into the mid $50s before long.
Put in a stop around $73 and ride it lower.
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.