Bearish Bets: 2 NYSE Stocks You Should Consider Shorting This Week

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.

Travelers

The Travelers Companies Inc.  (TRV)  recently was downgraded to Hold with a C+ rating by TheStreet’s Quant Ratings.

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.

GoDaddy

GoDaddy Inc.  (GDDY)  recently was downgraded to Hold with a C+ rating by TheStreet’s Quant Ratings.

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.

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.