Each week Trifecta Stocks identifies names that look bearish and may present interesting investing opportunities on the short side.

Using technical analysis of the charts of those stocks, and, when appropriate, recent actions and grades from TheStreet’s Quant Ratings, we zero in on five names.

While we will not be weighing in with fundamental analysis, we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names.

AdaptHealth

AdaptHealth Corp.  (AHCO)  recently was downgraded to Sell with a D rating by TheStreet’s Quant Ratings.

The provider of home healthcare equipment and medical supplies has fallen sharply and has a defined trend channel downward. This stock is fairly safe to enter as a short play; the indicators are not altogether bearish but the price action sure is.

The cloud is red and price is well below the 200-day moving average (arrow). The June move to that moving average was rejected soundly.

The Relative Strength Index (RSI) shows lower highs and lower lows and the recent August low at least should be tested. However, a move into the teens could happen, too, so target that area but use a stop at $27.25 just in case.

AMC Networks

AMC Networks Inc. (AMCX)  recently was downgraded to Hold with a C+ rating by TheStreet’s Quant Ratings.

The stock of the cable programming company has been coming down hard and shows some pretty bearish money flow. The Relative Strength Index (RSI) is weak and coming in bearish.

AMCX looks ready to fall further toward support, around the $44 area, but that may not hold the stock for long; more important levels are down in the low $40s.

Look for that area to fill but put in an aggressive stop at $54.

This commentary is an excerpt from “5 Bearish Bets” a weekly feature sent to subscribers of Trifecta Stocks. Click here to learn more about this portfolio, trading ideas and market commentary product.

Want to find out the other stocks we think look good short this week and how to play them? Click here for a trial subscription to Trifecta Stocks and get “Bearish Bets” each week!

— Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.

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