Home » Watchlist Week of June 13th, 2022

Watchlist Week of June 13th, 2022

Grayscale Bitcoin Trust (Short Idea)

The Grayscale Bitcoin Trust (GBTC) is an exchange traded fund that gives investors access to Bitcoin in the form of a security.

It trades like a stock and can be bought in any traditional brokerage account, so you don’t have to go through a digital currency exchange to trade it.

Here’s how the chart is setting up…

Daily Chart of Grayscale Bitcoin Trust (GBTC) – Source: TradingView 

And here’s how the stock is setting up with my Stock Surge Indicator (SSI)…

  • Surge score: 16/100
  • % Above 52-wk low: 9%
  • Sales growth: N/A
  • Return on Equity: N/A
  • Triple momentum: yes (short)

There was long-term support near the $24 area, which broke in early May.

Since breaching this level, GBTC cannot seem to rally and has formed a shelf over the last several weeks.

Traders may consider selling short here or once GBTC breaks below the $18.80 level. I would place a buy stop at $21.00 for protection.

Green Brick Partners, Inc. (Short Idea)

Green Brick Partners, Inc. (GRBK) is a residential homebuilder, and the stock looks ripe for another move lower.

Homebuilders saw huge profits in 2020 and 2021 thanks to a construction boom and rapidly rising home prices. But the party is coming to an end.

Interest rates have more than doubled over the last six months, and the country is on the verge of recession.

With rates expected to rise even further, it is hard to imagine this not ending in collapsing home prices and a serious slowdown in construction.

Here’s how the chart is setting up…

Daily Chart of Green Brick Partners, Inc. (GRBK) – Source: TradingView

 And here’s how the stock is setting up with my SSI…

  • Surge score: 75/100
  • % Above 52-wk low: 22%
  • Sales growth: +68%
  • Return on Equity: 25%
  • Triple momentum: no 

GRBK has traded below its 200-day moving average (white line) since January. 

Shares rallied back in the second quarter but are now failing and rolling over. 

Traders could take a short position in the stock here with a buy stop above the swing high at $25.05 to risk 9% on the trade. 

Skechers U.S.A., Inc. (Short Idea)

Since going public in 1999, Skechers U.S.A., Inc. (SKX) stock has regularly seen huge swings in both directions.

It mounts powerful rallies and suffers crippling falls. But if you can catch it at a turning point, the profits can be large.

Here’s how the chart is setting up…

Daily Chart of Skechers U.S.A., Inc. (SKX) – Source: TradingView

And here’s how the stock is setting up with my SSI…

  • Surge score: 71/100
  • % Above 52-wk low: 17%
  • Sales growth: +27%
  • Return on Equity: 14%
  • Triple momentum: yes (short)

SKX has been trending lower for almost a year with a series of lower lows and lower highs.

The stock rallied 25% off the May lows right into the dotted downtrend line and its 200-day moving average.

This is a low-risk area to try a short trade. Traders can place a buy stop on the other side of the 200-day line at $43.00 for protection. The risk is just under 7%.

Ross Givens
Ross Givens

I bought my first stock when I was 12 years old. It was Microsoft. I’ve been a registered financial advisor. I’ve worked as a stock broker. I ran a managed fund. I was a Vice President at JP Morgan with Series 7, Series 66 and Series 3 securities licenses. I’ve been featured on Fox Business, CNBC, Bloomberg, and a bunch of other networks. The only thing I enjoy more than making money, is helping YOU make money.

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