Built by Traders, for Traders

Ross Givens

Stock Trader & Educator

Watchlist Update: These Broken Leaders Have Lots of Room to Fall

Well, it was another brutal week for the stock market.

As of Friday morning, the Nasdaq 100 Index was off by 4.6%.

And that’s on top of a 5.8% decline the week before.

To put this selloff into perspective, here is a heatmap of the last 30 days…

S&P 500 Heatmap Last 30 Days – Source: TradingView

There just aren’t many stocks worth buying right now.

Leaders Lacking Strength

Our approach looks for strength – stocks trading near their highs and breaking out from tight consolidation areas.

Now, I keep a “Focus List” of stocks on my radar at all times. These are market-leading stocks with strong setups approaching their ideal buy point.

And as of Friday, almost all of them have fallen apart.

The only stocks holding up (at least for now) are Cal-Maine Foods, Inc. (CALM) and Altus Power, Inc. (AMPS), which I included on last week’s Watchlist.

But not all is lost…

Bearish Momentum Building

Often, the best performers from one cycle are the names you want to short when they finally fail.

Look at the biggest winners of 2020…

Zoom Video Communications, Inc. (ZM), Peloton Interactive, Inc. (PTON), Teladoc Health, Inc. (TDOC) and dozens of other former high-flyers have fallen 80% or more from their peak.

Why? Because they have further to fall.

Wall Street gets caught up in the hype and drives leading stocks to insane valuations.

When the company fails to meet the lofty expectations, common sense returns, and the stock tumbles.

So, it makes sense to watch these “broken leaders” for potential short trades.

Personally, I like to sell short when a stock bounces up into resistance. This allows me to use a tighter stop loss and risk less on the trade.

With that in mind, here are three short ideas I’m watching this week…

Lantheus Holdings, Inc. (Short Idea)

Lantheus Holdings, Inc. (LNTH) has been a standout all year.

The stock has more than tripled in the middle of a bear market on a steady rise higher.

Daily Chart of Lantheus Holdings, Inc. (LNTH) – Source: TradingView

But look at the chart now… Seven days in a row of lower lows and lower highs.

This stock is dead in the water, and it has lots of room to fall.

I would consider selling short on a bounce up to the 21- and 50-day moving averages.

Array Technologies, Inc. (Short Idea)

Array Technologies, Inc. (ARRY) has been one of the better-performing solar names. But last week, even solar stocks were not immune from the selling.

Daily Chart of Array Technologies, Inc. (ARRY) – Source: TradingView

ARRY has not broken the low of its base, which should now serve as resistance.

The 21- and 50-day moving averages are at the same level. This would be a lot for a stock to get through.

Consider a short on ARRY near that point.

Brookfield Renewable Partners L.P. (Short Idea)

After a clean breakout in July, Brookfield Renewable Partners L.P. (BEP) fell back to the breakout area and bounced.

Daily Chart of Brookfield Renewable Partners L.P. (BEP) – Source: TradingView

Last week, it blew through this level and also sliced through its 200-day moving average without a second glance.

I would consider shorting any bounce on BEP with a stop near $37.

Don’t Miss “The Apex Fortunes Summit”

Before I go, I want to make sure you know about the groundbreaking event Anthony Speciale and I are putting together on Sept. 27 at 1 p.m. ET. 

You see, despite the massive amount of uncertainty and volatility that’s flooding the market…

My good friend and gifted trader Anthony Speciale is still kicking ass…

In fact, in just four months he’s personally shown 101 regular traders just like you how to grow their accounts by 382%.

That’s right… 382%!

Which is far better than the -20% the S&P has plunged to this year. 

But what’s even more interesting…

Anthony says his phenomenal performance is all due to his proprietary “Apex System”…

Which is an advanced algorithm specifically designed to identify the Optimal Entry Point in ANY stock. 

Now, luckily for you…

Since the current state of the market has proven to cause headaches for some traders…

Anthony has generously decided to not only give you a special breakdown of this system…

But also show you how YOU could leverage the“Apex” to turn every $5,000 into $25,000 like clockwork.

Which is why I highly suggest RSVP and secure a free spot to this event…

Because all will be revealed on Tuesday, Sept. 27 at 1 p.m. EST. 

Again, while most traders are out there trying to cover their losses…

Anthony and his small group of traders are THRIVING because of this unique trading approach.

That’s why I guarantee you won’t want to miss it…

Especially once you see all of the SHOCKING details Anthony shares. 

All you have to do is click here now to RSVP and secure your seat for “The Apex Fortunes Summit.

If you have more questions or comments, please send them to support@tradersagency.com.

Embrace the surge,

Ross Givens
Editor, Stock Surge Daily

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