Evercore Inc. (Short Idea)
Evercore Inc. (EVR) was a market leader following the pandemic selloff of 2020. Shares climbed over 400% before peaking in October.
Since then, EVR has reversed course.
Here’s how the chart is setting up…
And here’s how the stock is setting up with my Stock Surge Indicator (SSI)…
- Surge score: 37/100
- % Above 52-wk low: 5%
- Sales growth: +9%
- Return on Equity: 66%
- Triple momentum: yes (short)
EVR now trades below its 200-day moving average, trending lower and cannot rally above the 50-day moving average (red line).
It is now trading against its downtrend line and just below the 50-day.
I like this as a short trade with a buy stop at $117 for protection.
Central Garden & Pet Company (Short Idea)
Central Garden & Pet Company (CENTA) is a mid-cap consumer goods company selling pet food and garden supplies direct to consumer.
In the age of Amazon, this is a questionable business model at best. And based on the technicals, this stock could be on the verge of a major decline.
Here’s how the chart is setting up…
And here’s how the stock is setting up with my SSI…
- Surge score: 67/100
- % Above 52-wk low: 7%
- Sales growth: +2%
- Return on Equity: 14%
- Triple momentum: yes (short)
Shares are forming a bearish “wedge” pattern with long-term support near the $40 mark.
But we don’t need to wait for it to break down before shorting the stock.
CENTA is trading right up against its downtrend line and just a dollar below the 200-day moving average. That’s a lot of resistance to push through.
I would consider selling this short in the $42-$43 range with a buy stop at $45.
This comes out to a risk of roughly 5% on a trade that could deliver a big win on the downside.
Adobe Inc. (Short Idea)
Adobe Inc. (ADBE) is one in a long list of past winners that has given back all of its post-pandemic gains.
The stock is down 43% since November and could fall further.
Here’s how the chart is setting up…
And here’s how the stock is setting up with my SSI…
- Surge score: 29/100
- % Above 52-wk low: 9%
- Sales growth: +9%
- Return on Equity: 43%
- Triple momentum: yes (short)
The trend is unquestionably bearish for ADBE stock, and shares have been unable to trade above their 50-day moving average for almost six months.
I would consider selling ADBE short in the $410-$425 area for a continuation move lower.
Work a stop at $442 for protection.
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