My Power Stocks System tracks the most volatile, liquid candidates for option trading or short-term stock trading each week…but along with those strong names, I uncover stocks setting up for downtrends too. You’ll probably recognize these well-known names, but a short-term downtrend is likely on the way.
I also mention the resistance levels of these stocks so you are aware of whether a downtrend is just starting or if it’s already established. And as we all know, stocks take the stairs up and the elevator down…so the volatility rating from my Power Stocks system should alert you to stocks that might surprise to the downside.
- Bank of America (NYSE:BAC): Bank of America is trading right around its resistance level of $12, which could signal that its upside is exhausted. Volatility for the stock is rated 32, well above the average of 20.
- JPMorgan Chase (NYSE:JPM): Same story for JPM—it’s trading right around resistance at $49. Volatility is rated 27.
- Citigroup (NYSE:C): C is also trading right around resistance, but its volatility, rated 17, is lower than average. This means it is less likely to make a big jump up or down suddenly—it should be a more gradual trend.
You can play the short-term downside on these stocks with at-the-money puts.
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