The bulls celebrated last week successfully tested the 200-day moving average for the s&P 500. And, I believe, celebration is warranted. But this week, there will be many shares to short.
The trouble with pulling out the POM-poms and join in the revelry that fierce resistance looming overhead. Successfully support a rebound must be accompanied by breakthrough to consolidation-final event. Otherwise, “chop” continues.
My scans weekend brought a trio of events, rallies, seem doomed to failure. Two of the three locked in a downtrend with a long history of failed bounces. The third stumbling after earnings and offer a schedule with deteriorating Technicals.
If you are looking for bear-Chow, these stocks are on the short menu.
3 stocks to short bears the Bank holding Inc. (PYPL)
Since then, losing altitude at the end of last quarter earnings release, PayPal holdings Inc (Nasdaq:PYPL) is stuck in the mud. The deterioration in sentiment in tech stocks did not help matters.
Shareholders hope last week earnings in order to breathe new life into PYPL stock was severely disappointed. The market reaction was a yawn, and now the stock is testing its lows of the triangle.
While today’s rally shows stock PayPal may not be ready to give up the Ghost, is to follow the breakdown below $72.50. Quick jump to next level of support at $69.50 will be fine after that.
3 stocks to short bears: Campbell soup co (CPB)
Campbell soup co (US:CPB) shares shall be a stranger to short sellers. Bears were baiting the BAS for several years. $41.53, Campbell was down 39% from their highs in 2016. This occurred, mind you, while the rest of the market was flying high in the sky.
The 200-day, 50-day and 20-day moving averages are all whizzing below shows the dominance of the sellers for all time periods. Last week was opened by the PBC to return to its 20-day moving average, which is an area that rejected many previous rebounds.
Today, the sale forms a “bearish engulfing” candle shows the bears wasted no time shoving the PBC back into the abyss.
Look for a retest of the lows at $39.76 in the coming days.
3 stocks to short bears: Kimberly Clark Corp. (KMB)
Kimberly Clark Corp (indexKMB) shares one of the best swing installations on Board this week. His trend is down, Yes, but it is also growing in momentum.
Selling pressure shot through the roof during the last drop, as shown by the increase in volume and volatility. As often happens, the oversold bounce finally caught on, just as soon as the price reached maximum pessimism.
And that brings us to today’s opportunities. KMB has returned to overhead resistance in the form of support and falling 20-day moving average. If you think that the pain will be coming to Kimberly, then this is a low risk of new short trades.
Use $97.50 as the goal of reducing.
At the time of this writing, Tyler Craig did not occupy positions in any of the above securities. Want more education on how to trade? Check out my trading blog, tales from the technician.