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Safety Dance: 5 Stocks That Will Tank Next Week
By Joshua Robbins,
josh@bluecollarinvestment.com
Next week we believe will be a bit shaky mostly concerning with the fact that we know that the fed will act, but just how and when is the question. Obviously our concern is simple: preserve gains well making an adequate return with a margin of safety. We all know that auto sales will decrease which usually leads to a small sell win this announcement takes place. Also, construction spending could lower given the current crisis. But I want to focus more on the earnings this week and see what I think is going to happen based on our 32 points of essential option picking.
1. GUESS INC COM (GES: NYSE) will be reporting earning on Sept 4. This stock is at it 52 week high, therefore there is a huge potential of downside. Other indicators such as stochastics as well as the RSI show this stock is due for a dip. Our recommendation is to purchase a put close to the money. If they don’t provide stellar earnings, this stock will see $44 real quickly. 2. FEDERAL HOME LN MTG CORP COM (FRE: NYSE) FRE closed below its 13-day EMA on Friday. This signal tends to have bearish implications that the near-term trend of the stock is lower. FRE closed below its 50-day EMA on Friday. This signal tends to have bearish implications that the near-term trend of the stock is lower. We are expecting this stock to go lower. Our recommendation is to purchase a put away from the money, just incase of a Fed created upswing then wait to settle. 3. MENS WEARHOUSE INC COM (MW: NYSE) MW closed below its 13-day EMA on Friday. This signal tends to have bearish implications that the near-term trend of the stock is lower.MW closed below its 50-day EMA on Friday. This signal tends to have bearish implications that the near-term trend of the stock is lower. We are expecting this stock to go lower. Our recommendation is to purchase close to the away from the money. 4. LADISH INC COM NEW (LDSH: NASDAQ) On Friday, the MACD swung to bearish when it closed below the signal line, a 9-period EMA of the MACD. This means that the underlying moving averages are converging and implies negative action for this stock's future trend. We will be buying puts on this, it should sink nicely over the next three weeks. 5. BECTON DICKINSON & CO COM (BDX: NYSE) BDX closed below its 13-day EMA on Friday. This signal tends to have bearish implications that the near-term trend of the stock is lower. On Friday, the MACD swung to bearish when it closed below the signal line, a 9-period EMA of the MACD. This means that the underlying moving averages are converging and implies negative action for this stock's future trend. We believe that this stock will visit to the low 70’s over the next week and fall even further the following week to the high 69’s. We will buy puts and ride the wave. Just for new readers, we provide weekly picks online that average 20-40 % a quarter. We encourage all of our new readers to take a look at our recent success.