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Keep it free! BEARISH STOCKS Search this site


Week of Monday
November 2, 2009
www.trendtrader.com   The Power to Trade

Stock
Symbol

Company Name

Sector

Closing
Price

Target
Price
(4-8 weeks)

CTSH Cognizant Tech Sol.Computer $38.65 $23.89
Bearish Technical Indicators:
Analysis of the rate of change of the exponentially smoothed average price suggests that a cycle top is forming for this equity. The rate of change is now declining indicating distrubution is taking place. This is a bearish reversal indication in this market.

The Money Flow Indicator has reveresed itself and is now moving in a downward direction. This is a bearish reversal indicating that money is moving from this equity into others. This type of reversal is often followed by a downward movement in the equity price.

The Money Flow RS Indicator has crossed the 80% line and is moving to the downside. This is a bearish reversal indicating that money is flowing out of this equity which is often followed by decreases in equity price.


Stock
Symbol

Company Name

Sector

Closing
Price

Target
Price
(4-8 weeks)

GPS Gap Inc.Retail $21.34 $14.07
Bearish Technical Indicators:
Analysis of the rate of change of the exponentially smoothed average price suggests that a cycle top is forming for this equity. The rate of change is now declining indicating distrubution is taking place. This is a bearish reversal indication in this market.

The 21 day stochastic has crossed the 80% line and is decreasing accompanied by decreasing volume accumulation. This is a strong bearish indication that a price reversal to the downside is now taking place. This type signal is often followed by further downward price movements.

The Price Phase Indicator is moving to the downside. This is a bearish continuation signal showing that a downtrend is in place and that prices are more likely to continue to the downside than they are to reverse and begin an upward movement.

The Money Flow Indicator has reveresed itself and is now moving in a downward direction. This is a bearish reversal indicating that money is moving from this equity into others. This type of reversal is often followed by a downward movement in the equity price.


Stock
Symbol

Company Name

Sector

Closing
Price

Target
Price
(4-8 weeks)

ABC AmerisourceBergenHealthcare $22.15 $17.08
Bearish Technical Indicators:
Analysis of the rate of change of the exponentially smoothed average price suggests that a cycle top is forming for this equity. The rate of change is now declining indicating distrubution is taking place. This is a bearish reversal indication in this market.

The 21 day stochastic has crossed the 80% line and is decreasing accompanied by decreasing volume accumulation. This is a strong bearish indication that a price reversal to the downside is now taking place. This type signal is often followed by further downward price movements.

The Money Flow RS Indicator has crossed the 80% line and is moving to the downside. This is a bearish reversal indicating that money is flowing out of this equity which is often followed by decreases in equity price.


Stock
Symbol

Company Name

Sector

Closing
Price

Target
Price
(4-8 weeks)

AAPL AppleComputers $188.50 $130.54
Bearish Technical Indicators:
Analysis of the rate of change of the exponentially smoothed average price suggests that a cycle top is forming for this equity. The rate of change is now declining indicating distrubution is taking place. This is a bearish reversal indication in this market.

The 21 day stochastic has crossed the 80% line and is decreasing accompanied by decreasing volume accumulation. This is a strong bearish indication that a price reversal to the downside is now taking place. This type signal is often followed by further downward price movements.

The Money Flow RS Indicator has crossed the 80% line and is moving to the downside. This is a bearish reversal indicating that money is flowing out of this equity which is often followed by decreases in equity price.


Stock
Symbol

Company Name

Sector

Closing
Price

Target
Price
(4-8 weeks)

EMC EMC Corp.Computers $16.47 $12.22
Bearish Technical Indicators:
Analysis of the rate of change of the exponentially smoothed average price suggests that a cycle top is forming for this equity. The rate of change is now declining indicating distrubution is taking place. This is a bearish reversal indication in this market.

The equity price has crossed and closed below the short term 18% exponentially smoothed average price. This indicates a continuation of the current price movement but it is subject to whipsaws. This is a weak bearish signal that could be followed by a downward movement in the equity price.

The 21 day stochastic has crossed the 80% line and is decreasing accompanied by decreasing volume accumulation. This is a strong bearish indication that a price reversal to the downside is now taking place. This type signal is often followed by further downward price movements.

The Price Phase Indicator is moving to the downside. This is a bearish continuation signal showing that a downtrend is in place and that prices are more likely to continue to the downside than they are to reverse and begin an upward movement.


Stock
Symbol

Company Name

Sector

Closing
Price

Target
Price
(4-8 weeks)

ALGN Align TechMedical Equipment $15.72 $8.30
Bearish Technical Indicators:
Analysis of the rate of change of the exponentially smoothed average price suggests that a cycle top is forming for this equity. The rate of change is now declining indicating distrubution is taking place. This is a bearish reversal indication in this market.

The 21 day stochastic has crossed the 80% line and is decreasing accompanied by decreasing volume accumulation. This is a strong bearish indication that a price reversal to the downside is now taking place. This type signal is often followed by further downward price movements.

The Money Flow RS Indicator has crossed the 80% line and is moving to the downside. This is a bearish reversal indicating that money is flowing out of this equity which is often followed by decreases in equity price.


Other Stocks With Bearish Signals HMSY, CBD, EEFT, CNL, BRF, BLL, ACG
HEY, WALL STREET: WHERE ARE ALL THE SELL RECOMMENDATIONS?

Stock prices go up, and (as everyone knows after 2000) stock prices also go down.   With this in mind, does it really make sense that over 90% of all analyst recommendations are the equivalent of "Buys" or "Strong Buys?"   Of course not.   So where does the independently minded investor turn for timely and unbiased research on stocks that are likely to FALL in price???

Sell recommendations are an endangered species on Wall Street.  While the investment industry produces mountains of research reports every year, analysts seldom issue "sell" ratings on the companies that they follow.  Therefore, investors are starved for research on stocks to sell short or on which to buy put options.

The reason for this preponderance of predominantly buy side research can be traced to the workings of the brokerage industry.   Most brokerage firms that publish research reports are also engaged in corporate finance or underwriting business for most of the companies that they follow.   Brokerage research analysts are therefore very reluctant to publish negative opinions about their "client" companies.   Doing so could tarnish their firm's relationship with the target company and jeopardize lucrative investment banking fees.

So where do investors turn for bearish stock research?   The answer for subscribers to Active-Investor.com is the powerful technical analysis tools that are brought to the market.   Technical analysis has been found to be an effective means of identifying stocks that are likely to drop in price.   The reason is that certain technical systems can often provide early indications of selling by insiders and institutional investors.   Waiting for negative information about a company to become widely disseminated often leaves individual investors feeling as if they were the ones left holding the bag after the larger investors on Wall Street have already sold a stock.

BEARISH STOCK RESEARCH

Bearish stock research is essential to any active investor wanting to adopt a "market neutral" trading strategy.   Short selling (or buying put options)in the hopes that a stock's value will decline is not a familiar strategy to many investors.   The risks associated with "selling short" can be high due to the use of margin, so Active-Investor strongly suggests that traders who are unfamiliar with the risks should consult an investment advisor about the added risks before attempting this strategy.   But given the proper research and strict adherence to placing stop loss points, the potential for profits are just as high.   Active-Investor uses a blend of sophisticated technical analysis tools to produce our bearish stock research.   We go through a 4-step process before providing this information to our members each and every week.

Step 1:Studies have shown that the single most important determinant in the direction of a stock's price is the industry group or "sector" to which the company belongs.   This is the step we refer to as the "top/down" portion of our system and helps to differentiate us from our competition.
Step 2:We analyze over 4,000 companies to identify a list of stocks with the strongest bearish technical signals.  This step represents the "bottom/up" element of our weekly buy and sell research.   The average daily trading volume is usually at least 100,000 shares for stocks that make our featured list.   The number of stocks in the list created in Step 1 is reduced by identifying which stocks belong to an industry sector also demonstrating bearish technical signals.
Step 3:After applying the sector screen to the stocks with the strongest bearish signals, the remaining price charts are personally analyzed in order to select 10-12 stocks that are considered to have the most downside price potential over the next 4-8 weeks.
Step 4:Finally, the research is compiled and presented to our members in an easy-to-read tabular format.   This table is available to our members every week and contains stock symbol, company name, closing price, target price, and detailed information on the stock's bearish technical signals.

Naturally, the bearish stock research is most helpful when the market indexes are headed lower.   Because of this, subscribers often consult this research after reviewing the information on the Indexes/Sector page and the insight delivered in the Market Commentary page.

OUR BLEND OF TECHNICAL INDICATORS

Active-Investor.com utilizes a blend of highly sophisticated technical indicators for analyzing stocks.   Below is a table showing the technical indicators and trading bands used in our research.

TECHNICAL
INDICATORS
TRADING
BANDS
Price
Volume
Accumulation
Distribution
Advance/Decline
Directional Movement
MACD
Money Flow
Relative Strength
Stochastics
Volatility
Bollinger
Moving Averages
Exponentially Smoothed Averages
High/Low Points

OUR INVITATION TO YOU

Please accept our invitation to review Active-Investor.com's weekly research for free, with no obligation.   Take a moment now to keep it free.


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