The best time to run a bearish stock screen is right after the market sees a decent bounce, because this allow for numerous stocks to climb into overbought territory. Lately, I’ve been updating this screen each week, and below is a list of 20 stocks to sell.
These stocks are showing signs of, or already in the process of, breaking down as the smart money appears to be leaving them in a subtle manner.
Some are stocks trading at their peak and finally showing some vulnerability, while others are stocks that had been in a channel near or at their lows, before finally breaking down below those lows.
Stocks to Sell
1. Avista Corporation (NYSE: AVA)
2. Capstead Mortgage Corporation (NYSE: CMO)
3. Devon Energy Corporation (NYSE: DVN)
4. EarthLink, Inc. (NASDAQ: ELNK)
5. Furniture Brands International, Inc. (NYSE: FBN)
6. Foot Locker, Inc. (NYSE: FL)
7. Huntsman Corporation (NYSE: HUN)
8. Illumina, Inc. (NASDAQ: ILMN)
9. Integrated Silicon Solution, Inc. (NASDAQ: ISSI)
10. Matthews International Corporation (NASDAQ: MATW)
11. NorthWestern Corporation (NYSE: NEW)
12. OGE Energy Corp. (NYSE: OGE)
13. R.R. Donnelley & Sons Company (NASDAQ: RRD)
14. Stone Energy Corporation (NYSE: SGY)
15. Tenneco Inc. (NYSE: TEN)
16. Talisman Energy Inc. (NYSE: TLM)
17. Teekay Tankers Ltd. (NYSE: TNK)
18. TriQuint Semiconductor (NASDAQ: TQNT)
19. Veolia Environnement (NYSE: VE)
20. Wright Express Corporation (NYSE: WXS)
You’ll probably notice that this particular screen popped out a number of oil and gas companies, along with utilities. Of those listed, though, I think retailer Foot Locker, Inc. (NYSE: FL) is the weakest.
The stock has two things going against it that provide an intriguing reward/risk setup to the short side. First, the stock has broken its trendline from its November lows and the old trendline is now acting as overhead resistance. Second, it is bouncing up against the new downward trendline right above it.
Ryan Mallory is the founder of the financial blog SharePlanner.com, where he provides traders with daily market plans, trading ideas and setups, along with a look at how he manages his own portfolio on a daily basis.
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