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Bearish Bets: 2 Stocks You Should Consider Shorting This Week

These names are showing both technical and quantitative deterioration.
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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.

Dillard's

Dillard's Inc.  (DDS)  recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.

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This department store chain's chart has seen better days. After a huge spike in November the stock has made a series of bearish moves.

With lower highs and lower lows, the trend channel is well-defined. There's no reason to believe the buyers will pick this up, and with markets at all-time highs the stocks that are lagging will continue to do so.

Short to the lower end of the channel, but put a stop in around $65.

NetApp

NetApp Inc. (NTAP)  recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.

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While there's not much wrong with technology names these days, this provider of software and systems for managing data has had its troubles. NetApp recently gapped lower on huge volume and now is fighting a downtrend channel.

Moving average convergence divergence (MACD) just crossed over for a bearish signal, and the Relative Strength Index (RSI) is making lower highs and lower lows here as the cloud is red and widening.

It's all bearish for this name, with a move back to the October lows likely.

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 three 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.

At the time of publication, Lang and Trifecta stocks had no positions in the securities mentioned.