The market has taken a surprise move lower today to the surprise of most, and in particular of those who fearlessly bought the dip (can you blame them though!?!). At this point, I think the move lower has little significance to it. Instead I’d wait to see if it can break through the lows from 3/23. That would be a telling development as it would cut short the breakout we had this week to new highs, and would instead put in a “lower-low” from the point we bounced at before.
Below, I’ve put together a list of stocks that are clearly breaking down, using parameters that filters for strong institutional selling. The price action as well confirms the move lower, and in particular, I really liked the bearishness in the following names: Verizon (VZ) which had a major long-term trend-line break, Chesapeake Energy (CHK) which has confirmed a double top, and Universal Health Services with the obvious head and shoulders pattern that has formed and confirmed.
Take a look at the rest of my favorite short opportunities.
