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.
What a brutal month it has been for stocks in the US!
From mid-Feb 2025 to mid-Mar 2025, the US stock market has slid continuously. It was only until 10 days ago that this slide stopped.
Will this rally be short-lived?
Are we in for another round of drop?
We could be!
Therefore, I think that it would be wiser to look for shorting opportunities for now. Before I share the stocks I’m eyeing to short, you may want to review the stocks shared in March.
Done? Here are the 2 stocks that you’ll to consider shorting for a profit.
Bath & Body Works (NYSE: BBWI)
Source: bbwinc.com
1. About the Company
Bath & Body Works was founded in 1990 as a soap and fragrance company.
Over the years, the company has innovated and added new product lines, including beauty.
It got sued in its early days, but the company didn’t let this lawsuit cripple them. The company bounced back and grew from strength to strength.
Today, Bath & Body Works has over 1,500 stores worldwide.
Does the chart of its share price reflect its growth story in the recent year?
Let’s find out.
2. Position Trading (Daily)
Referring to its chart above, do you think the shares of Bath & Body Works are embraced by the market?
This can be easily inferred from the number of blue candles (outlined or solid) against the number of red candles (outlined or solid).
When there are more red candles, it indicates that the stock is in a downtrend. This tells us that the market doesn’t like the stock. There’s no need to put on Moving Averages or draw trendlines to help you tell the trend.
Unfortunately, the market doesn’t favor the shares of Bath & Body Works. To succeed in the stock market, you’ll want to consider shorting its shares.
But, is it the ideal time to short its shares for a position trade?
Let’s have a look at the 2 main indicators – the arrow and Trend Impulse Factor.
Do you see a red arrow above its latest candle?
That red arrow suggests that a fresh bearish move is here. Shorting a fresh bearish move is a good idea because that increases your chances of success.
But, we aren’t done with our analysis.
Let’s switch our attention to the other indicator – the Trend Impulse Factor.
When its bar is in dark green, this tells us that the bearish momentum is likely to continue. Therefore, it makes sense to only short the shares of Bath & Body Works when both the red arrow has appeared and the color of its Trend Impulse Factor turn dark green.
Looking at the chart of Bath & Body Works once again, the time to short its shares for a position trade is not here yet. I’ll be keeping this stock in my watchlist because I think that a shorting opportunity will emerge soon.
Wynn Resorts (NASDAQ: WYNN)
Source: wynnresorts.com
1. About the Company
Wynn Resorts was founded in 2002. The company engages in the design, development, and operation of casino resorts.
The management wasted no time constructing their 1st overseas casino only 2 years after its founding.
The company did not rest on its laurels. Instead, it continued to spot opportunities to unlock value and expand its market share.
Its history sounds like a fairytale. Does the market love its shares?
2. Position Trading (Daily)
Without the need to add technical indicators such as Moving Averages, can you tell that the shares of Wynn Resorts are in a strong downtrend?
This can be easily inferred from comparing the number of blue candles (outlined or solid) to the number of red candles (outlined or solid).
Because its shares are in a downtrend, you’ll want to identify an opportunity to short its shares for a position trade.
But before you do so, let’s check whether the time is ripe.
Let’s refer to the 2 main indicators – the arrow and Trend Impulse Factor to find out.
I love what I’m seeing!
Do you feel the same?
There’s a red arrow above its latest candle, and the bar of its Trend Impulse Factor indicator is in dark green. From these indicators, you can tell that this bearish move is fresh and likely to be sustained, increasing your chance of success if you were short its shares.
Conclusion
Source: unsplash.com
The shares of Bath & Body Works and Wynn Resorts are out of favor. But this doesn’t mean that there isn’t a short position trading opportunity.
While the time for a short on the shares of Bath & Body Works isn’t here, you’ll want to consider adding it to your watchlist because I feel that the time could come soon.
On the other hand, the time to short the shares of Wynn Resorts is here!
This is inferred from the 2 proprietary indicators that are carefully curated to bring traders an edge in the market.
Trading stocks without a proper system can be highly risky. This is why the TradersGPS (TGPS) system 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!
