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. Though our computer signals are showing a bullish-to-neutral outlook, not all stocks will participate equally in the overall trend.
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 a volatility rating above 20 from my Power Stocks system should alert you to stocks that might surprise to the downside.
- Eastman Kodak (EKDKQ) — It probably comes at no surprise that Kodak is doing terribly. At 13 cents, it’s far below its $1 resistance. This is one to just outright avoid, as options have low interest and it’s not really worth shorting such a low-priced stock.
- Brunswick Corp (BC), a manufacturer of recreational products from boats to billiard tables, is trading right around its $33 resistance. Don’t be fooled, though—with a volatility rating of 38, this stock has some serious potential to drop down.
- Disney (DIS) is also showing quantitative bearish signs, and currently is trading slightly above resistance. It has fairly low volatility at 16 so a slow decline would be more likely.
- Mattel (MAT) is also showing signs of a slow bearish downturn, with a volatility rating of 15, and is trading right at resistance.
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