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.
The past week have been painful for late entrants to the precious metals market, especially Gold and Silver. Prices of both precious metals tanked 12% and 30% respectively late last week, and are struggling to recover. I hope that you didn’t get caught!
Digital assets aren’t spared as well. Bitcoin shed 13.6% while Ethereum plunged 24.7% late last week.
Such sudden and steep drops could well affect the US stock market, so I’m looking to short these 2 stocks in February. But before I share my findings, you may want to review the performance of the 2 stocks shared in January.
Liberty Media (NASDAQ: FWONK)
Source: libertymedia.com
1. About the Company
Liberty Media was founded in 1991 as a spin-off from TCI.
The company has always been in the media and communications business. Through smart acquisitions of Atlanta Braves, SiriusXM, and a part of Charter Communications, Liberty Media diversified into live sports.
When the chance to acquire Formula 1 emerged in 2017, the company seized it. The company continued looking to add Motorsports to its portfolio and bought a majority stake in Dorna Sports, bagging the exclusive commercial and TV rights to MotoGP.
As the company continues to expand, the future looks bright. But, is this a reason to buy its stock for a position trade?
2. Position Trading (Daily)
There are a couple of things that you can tell from the chart above.
The first is its price trend.
Can you tell that the share price of Liberty Media was in an uptrend from April to October 2025?
This can be inferred by comparing the number of blue candles (outlined and solid) against those in red (outlined and solid). Yes, this is without the need to plot trendlines or use other technical indicators, such as moving averages.
The share price of Liberty Media began trending downward from October 2025, with more red candles (outlined and solid) than blue.
Knowing this, I’m inclined to search for a shorting opportunity for a position trade.
Are there other considerations before I short its stock?
Yes! Let’s have a look at what the other 2 proprietary indicators on its chart tell me – the red arrow and Trend Impulse Factor.
Do you see a red arrow above its latest candle?
That tells me that a fresh bearish move is here.
Now, let’s turn our attention to the second proprietary indicator – the Trend Impulse Factor.
A dark green bar suggests that this fresh downtrend is likely to be sustainable.
I like what I see!
Both the red arrow and Trend Impulse Factor agree that this bearish move is likely to be sustainable for a position trade. Hence, I want to short its shares!
Vistra (NYSE: VST)
Source: vistracorp.com
1. About the Company
Vistra is a well-known, storied utilities company founded in 1882.
It has undergone several major challenges over the years and emerged stronger. In the recent years, Vistra went on an acquisition spree, buying 4 utilities companies to expand its reach and adding 3 nuclear sites to its portfolio. Vistra now has the 2nd largest competitive nuclear fleet in the US.
Is it a wise idea to buy its shares for a position trade?
Let’s find out in the next section.
2. Position Trading (Daily)
Vistra’s shares were on a mighty uptrend from April to September 2025.
Without the need for technical tools and indicators (such as trendlines and Moving Averages), you can easily tell the price trend by comparing the number of blue and red candles (outlined and solid).
However, things changed when October arrived. Its shares began sliding; a downtrend formed.
Because the trend is your friend, I’ll want to short this stock. But, is there a shorting opportunity?
A look at the first proprietary indicator gives me a clue.
Do you see a red arrow above its latest candlestick?
That signals a fresh bearish move is here.
With the presence of this red arrow, I want to know whether this fresh bearish move is likely to continue. Hence, I’ll turn to the second proprietary indicator – the Trend Impulse Factor.
Because the Trend Impulse Factor indicator’s bar hasn’t turned dark green, this fresh bearish move isn’t likely to continue. However, I think that this bearish move could continue, so I’m adding Vistra to my watchlist.
Conclusion
Source: unsplash.com
The precious metals and digital assets markets were rocked over the past week due to a change in margin requirements, among other regulatory changes. Stocks were not spared.
Stocks related to the affected markets dived, adding downward pressure on the US stock market. And I think that the worst isn’t over yet. As such, I’ve identified 2 stocks that could bring me a nice red packet in time for the Chinese New Year.
Our proprietary indicator shows that a fresh bearish move has appeared on the charts of Liberty Media and Vistra.
While the time to short the shares of Liberty Media is here (as suggested by the Trend Impulse Factor indicator), this is not the case for Vistra.
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.
I’m optimistic that an opportunity could emerge in days to come, so I’m adding Vistra to my watchlist, and you might want to do the same!
What are your thoughts?
Share your thoughts with me below!
