Home » Watchlist Week of June 20th, 2022

Watchlist Week of June 20th, 2022

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The Boeing Company (Short Idea)

The Boeing Company (BA) has been trending lower since last March – 10 months before the bear market even started.

Here’s how the chart is setting up…

Daily Chart of The Boeing Company (BA) – Source: TradingView

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

  • Surge score: 24/100
  • % Above 52-wk low: 18%
  • Sales growth: -8%
  • Return on Equity: N/A
  • Triple momentum: yes (short)

Sales are declining, and the company is losing money hand-over-fist. Institutions have also been exiting the stock for the last four quarters.

Regular readers know I prefer to short weak stocks when they bounce up into resistance – preferably a downtrend line or major moving average.

BA is roughly 7% below its 50-day moving average, which will likely serve as resistance for the stock.

Traders may consider selling BA short in the $135-$145 range using a 10% stop for protection.

JD.com, Inc. (Short Idea)

JD.com, Inc. (JD) is a Chinese retailer offering a wide variety of products via their website and mobile app.

Basically, it is China’s version of Amazon… only not nearly as good.

Here’s how the chart is setting up…

Daily Chart of JD.com, Inc. (JD) – Source: TradingView

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

  • Surge score: 70/100
  • % Above 52-wk low: 58%
  • Sales growth: +22%
  • Return on Equity: 9%
  • Triple momentum: no

I’ll admit to being a bit biased on this one because I strongly dislike Chinese stocks.

I have seen too many rug-pulls, ghost companies and too much outright fraud from Chinese companies to have any real faith in their stocks that trade on our exchanges…

Not to mention the government’s history of nationalizing private industries and just generally hating US investors.

That being said, the stock is a textbook short setup…

After a severe decline, JD bounced into its 200-day moving average, which will likely act as resistance.

Consider selling JD short here with a buy stop near $69.

ZIM Integrated Shipping Services Ltd. (Short Idea)

ZIM Integrated Shipping Services Ltd. (ZIM) is a stronger stock than I typically look to short, but I believe this is the beginning of the end for ZIM.

Here’s how the chart is setting up…

Daily Chart of ZIM Integrated Shipping Services Ltd. (ZIM) – Source: TradingView

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

  • Surge score: 93/100
  • % Above 52-wk low: 106%
  • Sales growth: +113%
  • Return on Equity: 191%
  • Triple momentum: no

The stock has been a market leader in 2022 as marine shipping companies have been able to charge insane rates due to slowdowns in the supply chain.

Earnings surged roughly 10-fold after the pandemic, and the stock has done the same.

But President Biden basically declared war on ZIM and the other handful of companies that control the bulk of cargo shipments from overseas thanks to what the White House believes is “price gouging.”

After an 803% move higher in 2021 and early 2022, ZIM has finally started rolling over.

Shares have seen heavy selling volume over the last few weeks, and the stock is now resting on its 200-day moving average for the first time ever.

If ZIM breaks below $47, I would consider selling it short with a buy stop at $52. 

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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