Bearish Bets: 2 Small Cap Stocks You Should Consider Selling Short This Week



Each week, Trifecta Stocks identifies names that look bearish and may present attractive investment opportunities on the short side.

Using technical analysis of the charts of these stocks and, where applicable, recent stocks and ratings from TheStreet’s Quant Ratings, we are focusing on five names.

While we don’t weigh in on fundamental analysis, we hope this article will give investors interested in falling stocks a good place to start doing their research on names.

ShotSpotter

ShotSpotter Inc. (SSTI) was recently demoted to To sell with a D + rating by TheStreet’s Quantitative evaluations.

This precision policing technology provider is a repeat offender here; we have presented ShotSpotter several times as a short play. With a series of highs and lower lows, this stock is falling for the count.

Money flows are bearish and the Relative Strength Index (RSI) is leaning on a steep slope as the cloud remains red. The downtrend line is steep resistance as the stock is below all moving averages.

Target the low $ 20 but stop at $ 33.

OptimizeRx

OptimizeRx Corp. (OPRX) was recently downgraded to Hold with a C rating by TheStreet’s Quantitative evaluations.

This provider of electronic health records technology was torpedoed in November, falling like a stone in the water. A drop of over 45% in a month was astounding, but there could be more downsides to come. Yes really! Indeed, this is a great place for a short entry as the stock is showing a bearish flag.

The flow of money remains a brake while the cloud is still red. The recent 200-day moving average test failed, so look for a return to $ 40, but stop at $ 69.

This commentary is an excerpt from “5 Bearish Bets”, a weekly article sent to Trifecta Stocks subscribers. Click here to learn more about this portfolio, trading ideas and market commentary product.

Want to find out what other actions we think are good this week and how to play them? Click here for a trial subscription to Trifecta Stocks and get “bearish bets” every week!

– Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.

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