Sell Short Bed, Tub and Beyond and DH Horton
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The indices should go down. Important support levels were broken and downside targets were not met. A marketable bottom is unlikely before the end of June. Here are some short selling recommendations.
Short sales are derived from the S&P 500 screen below. The first column is the seasonal ranking for May. The second screen is the current relative strength screen. The third column is the combined rank.
S&P 500 display
Here are the weakest stocks in the S&P 500.
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Bed, Bath, and Beyond has been weak and is expected to decline further. The monthly cycle is down and has been accurate for the past year. May was a weak month, up only 47% of the time. Shares are expected to approach $10.
monthly cycle
This reliable cycle is down.
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Daily chart
Relative strength is reaching new lows.
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Daily histogram for May
The period from the 12th to the 20th was exceptionally weak.
Daily histogram for May
Blue: average percentage change
Red: Probability of a rise that day
Green: Expected return (Product of the first 2)
DH Horton should also be a weak stock. The daily histogram shows how bearish May is overnight. The daily bar chart illustrates weak relative strength. The stock price should approach $65.
Daily histogram for May
May was a weak month for this homebuilder.
Daily histogram for May
Daily chart
The relative strength is weak.
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