Sell Short Bed, Bath, And Beyond And D.H. Horton

The indices are likely to move lower. Important support levels have been broken and downside objectives have not been met. A tradable low is unlikely until late June. Here are short sale recommendations.

The short sales are derived from the S&P 500 screen below. The first column is the seasonal rank for May. The second screen is that of the current relative strength. The third column is the combined rank.

S&P 500 screen

Bed, Bath, and Beyond has been weak and is due to fall further. The monthly cycle is in a down mode and has been accurate in the last year. May has been a weak month, up only 47% of the time. The shares are likely to fall closer to $10.

Monthly Cycle

Daily graph

Daily Histogram for May

Blue: Average Percentage Change

Red: Probability of a rise on that day

Green: Expected Return (Product of the first 2)

DH Horton is also projected to be a weak stock. The daily histogram shows how bearish May is on a day-by-day basis. The daily bar chart depicts the weak relative strength. The share price is likely to fall closer to $65.

Daily Histogram for May

Daily graph

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