Medium term downtrending stocks (USA)


Junior member
Hi guys,

I'm looking for some medium term downtrending stocks, in order to hedge the incredible highs that the US stock market is at right now. I'm using the finviz screener as a starting point, but I thought I'd ask here in case any had any ideas for me to examine more closely.

I'm currently swing trading stocks like Amazon, FB etc (with SLs just in case). I also have some long term positions on PFE, Shell and BTI.

I'm looking to hedge against a possible crash in case the market decides that a covid recovery might take longer than anticipated (or a just some other random crash). To that end, I'm looking for some swing positions on downtrending stocks that will not change course in the event of a crash.

All thoughts welcome with many thanks.


Junior member
Hello again,

I thought I'd post the first steps of my research. Maybe I'll get a "more" comments. :)

I've come up with 6 companies, all traded in the US. All currently under 200 SMA (daily). I'll write a little bit about each one. This'll be a way for me to put my thoughts in order... and maybe useful to some readers.

I only have basic info at this point. I'll need to do more research under all circumstances.

TEO Telecom Argentina
Argentinian mid cap. Price peaked in 2018 at around $30. Currently at 6.50 in consolidation with a recent December high of 9.50. Just one Wall Street analyst has looked at this (according to Saxo), and has a price target of $6, from 5 months ago. $6 also seems to be the support from Oct and Nov. It was trading at around $11 pre pandemic. Fell to 6 and climbed briefly back to 11 in the summer, before coming back down. It looks like there's something wrong with this company (which is what I want actually), but it need to check how it's related to the pandemic. Another issue is that it only has around 60 cents of downside and was recently at $9 ...! Probably a no go.

SUPV Grupo Supervielle Argentina
Argentinian banking micro cap. Again, 2018 high of around $30. Currently at 1.91. Hit 3.50 in August, but post October high is around $2.20. Two analysts, both at sell, but with no price target. Pre pandemic at 2.60, fell to around 1.30. Recovered to around $4 in August, just like TEO above. Also probably a no go..

BKYI Biokey Int Inc
This is a penny stock in industrials. Was at $80 in 2013. Currently at 4.51. Pre pandemic at around $8, then shot up to $20 temporarily, before coming back down. In a new crash, will this shoot up again? Let me go to the next one...

CMCM Cheetah Mobile
Chinese mid cap. Currently trading at 3.22. Peaked in 2015 at around $18. Went from $2 pre pandemic to $1. Currently above pre pandemic levels. Jumped in recent weeks.. recent days actually to $5. Is this a possible winner from the BABA clamp down? Let's go to the next one.

XEL Xcel Energy
American utlity. Large cap. Neutral rating. Average anaylst target (6 analysts) is a $68. I'm not sure this is on a long term down trend, but it might still be my best bet so far. ATH is around 76 which it hit in November (post pandemic). Has been on a downtrend since then, past 6 weeks of which were like clockwork. Has had three downgrades from April onwards (after which it hit ATH - go figure). Pre pandemic it was at 72, then hit 48. I think it's not perfect, but this might be my favourite one so far.

NKLA Nikola
US EV company. Doesn't need much of an introduction. The whole company seems to be a con job (though there have been efforts to rectify that). Also, EV stocks are a gamble with all the hype these days and a Biden victory. Additionally, recent history has shown us that con jobs can have a lot of success. NKLA actually has a buy rating (8 analysts, 3 buy, 5 hold) with an average target of 29 (currently at 23). Hmmm...

MO Altria Group
American tobacco large cap. Price peaked in 2017 at $75. Currently at $43. Last 5 years have been a struggle for these guys. I just don't know how much further down they could go. Right now, the downtrend might be changing to a consolidatfion phase. They also have an 8% dividend, which I'll have to watch out for. It'll force me to cover before the ex dates.

I can't say I've found anything I really like... I guess I'll keep looking.

I'll welcome any thoughts in the meantime! Thanks again.
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock    No Thanks