Bearish bets: 2 stocks you should consider selling short this week

Each week we identify names that look bearish and may present attractive investment opportunities on the short side.

Using technical analysis of these stocks’ charts and, where available, recent stocks and ratings from TheStreet’s Quant Ratings, we focus on several names.

While we’re not going to weigh in on fundamental analysis, we hope this article gives investors interested in falling stocks a good starting point to do some additional research on the names.

Inter Parfums is not up to the job

Inter Parfums Inc. (IPAR) was recently downgraded to Hold with a C+ rating by TheStreet’s Quant Ratings.

The perfumer has been in sharp decline for months. The peak here was the start of the year, as was the case for many stocks. The cloud remains red, as this stock is in a steep decline.

The recent pull-up is simply a bearish flag, with a strong downtrend in the Relative Strength Index (RSI). The flow of money is weak and smacks of distribution.

We might see a bounce towards the mid $70s, but that would be about it. A break below recent lows targets the higher $50 here; but stop at $75 and target $55.

SiteOne landscape offer is not attractive

SiteOne Landscape Supply Inc. (SITE) was recently downgraded to Hold with a C+ rating by TheStreet’s Quant Ratings.

This landscape supply wholesaler has a miserable chart, with lower highs and lower lows, which indicates stocks in this group. Silver flow is weak and has just rebounded positive for a while, so now is a good time to settle in with a bearish play.

The RSI is still well below 50; this move through the 20-day moving average is on lower turnover, a good place to be short.

Target the $110 zone here, stop at $145.

(Real-money contributor Bob Lang is co-portfolio manager of TheStreet’s Action Alerts PLUS. Want to be alerted before AAP buys or sells stocks? Learn more now.)

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Garland K. Long