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S&P 500 Short Picks: FTR, M, VLO

Published 06/14/2016, 05:16 AM
Updated 05/19/2020, 04:45 AM
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This is our weekly S&P 500 MoMo (momentum) report. We have analyzed the S&P 500 through our stock screeners to give you the top stock recommendations with positive and negative momentum to help you get an edge in your trading. We also look at whether the S&P 500 may be primed for a reversal based on its market internal indicators.

In this report we look at:

  • A lot of indicators are beginning to point to downside risks for the index, and it may be a good time to pick up downside protection.
  • As such, our top pick is short Frontier Communications Corporation (NASDAQ:FTR). We also initiate shorts on Macy’s (NYSE:M) and Valero Energy Corporation (NYSE:VLO).
  • Short positions have been building substantially in HP (NYSE:HPQ) and General Growth Properties (NYSE:GGP).
  • A run-down of the market internals for the S&P 500.
  • And a technical look at the index as a whole.

SPX Overview:

The S&P 500 saw its third day of consecutive declines in a month as concerns over Brexit, China and global monetary policy have begun to weigh on the index. The index closed at 2079 on Monday, roughly the mid-point between the trading range of 2120 and 2040.

Jitters are evident in the recent price moves, but one would be waiting for the price to break below the Ichimoku cloud and for a close below 2040 to show that the trading range is decisively broken. In such a scenario, the 1925-1825 lows of January and February could open up again.

To read the entire report, please click on the PDF file below:

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