The screen below are for those stocks that have been on a solid uptrend of late, but are starting to show signs of breaking down along with a loss of interest by the street as a whole. So if you are looking to short this recent market rally, use the list below as bit of a primer to get your bearish energies flowing. These four stocks look pretty good when just looking at price and volume from a long-term perspective, however, what is concerning is some of the glaring bearish divergences that are popping up. One such indicator is the Time Segmented Volume – TSV that shows all of the stocks below in the negative, which is a good indicator that the longs are starting to get a bit skittish in their current positions, and are taking profits as a result.
One particular stock to pay close attention to is GIS. Surprisingly it rallied all of August when the market was down notably, and so far in September is only up a couple percentage points, despite the market being up over 10%. There is also a huge spike of volume over the past five days, which to me is a strong sign of distribution occurring.
Here are the 4 stocks prime for shorting…
