This article is for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade/investment.

It’s reported that the temperature across Singapore is at a record high.

Do you know what else is this hot?

That’s right! It’s the US stock market.

The US stock market has been defying gravity for a few months, which has excited many.

However, I think we could be in for a rough ride real soon. As such, I’ve filtered 2 weak stocks that you may want to go short on.

Before I introduce the stocks I’m watching, let’s have a look at the 2 stocks shared last month: Rithm Capital and Western Digital.

Albemarle (NYSE: ALB)

Source: albemarle.com

1. About the Company

Albemarle was founded in 1887, producing Kraft and blotted paper.

The company aggressively expanded its products and geographical reach through acquisitions and restructuring financed by debt.

This growth model proved so successful that it was rinsed and repeated over the decades, becoming the behemoth it is today.

Having enjoyed phenomenon success, why should you be on the lookout for shorting opportunities?

2. Position Trading (Daily)

A glance of its price chart shows why!

Its share price hasn’t been performing for a period of time. In fact, the market is pessimistic about its future, hence the downtrend.

Yes, there’s a quick what to tell if a stock is in a downtrend: by identifying the primary colors of the candles.

When there are more red candles (outlined or solid) than blue (outlined or solid), you can conclude that its share price is in a downtrend.

Without the need to draw or plot anything, you can also tell if the time to short its shares for a position trade is here!

You can do so by focusing on the 2 main indicators – the green arrow and the Trend Impulse Factor.

A fresh bearish burst is here when there’s a green arrow above the second most recent candle.

A look at the color of the bar of its Trend Impulse Factor indicator will reveal if the momentum is likely to continue for a position trade.

The bar of its Trend Impulse Factor indicator isn’t dark green yet. This means that this bearish momentum is unlikely to continue in the near term.

Hence, you’ll want to keep this stock in view and wait.

I have a feeling that the green arrow and the bar of its Trend Impulse Factor indicator should turn green sometime soon, so I’m keeping this in my watchlist.

Dentsply Sirona (NASDAQ: XRAY)

Source: dentsplysirona.com/en-us

1. About the Company

Founded in 1877, Dentsply Sirona is another storied company.

This company has been innovative right from the start, propelling it to become a well-known company that deals with dental products.

Over time, the company grew by acquiring top companies in the same field, which allowed it to reach new markets.

Although it has been enjoying breakthroughs, why am I looking for a shorting opportunity?

2. Position Trading (Daily)

Can you tell that the price chart of Dentsply Sirona is in a downtrend?

In addition, there’s a green arrow above its second latest candle.

The presence of this green arrow tells you that a fresh downtrend is here.

But, does this mean that the time is ripe for a position trade?

Let’s have a look at the color of the bar of its Trend Impulse Factor indicator.

Do you notice that its bar isn’t dark green in color yet?

This suggests that the bearish move may not be sustainable in the near term.

Therefore, you’ll want to wait patiently for the appearance of both the green arrow and the dark green bar of its Trend Impulse Indicator.

Similarly, I feel that the green arrow and the bar of its Trend Impulse Factor indicator should turn green sometime soon, so I’m keeping this in my watchlist.

Conclusion

Source: unsplash.com

Both stock picks enjoy a long and storied past. Their glorious heritage doesn’t look to be ending soon.

However, a look at their charts shows that a shorting opportunity could appear soon.

Therefore, once the green arrow and the bar of its Trend Impulse Factor indicator turns dark green, you should consider shorting their shares.

Trading stocks without a proper system can be highly risky. This is why TGPS was created. The indicators will help you determine if a stock is ready for action to be taken. You won't have to feel in the dark and make wild guesses.

What are your thoughts?

Share your thoughts with me below!