Top Stocks To Short As Market Ignores Widespread Protests
As the rally continues in the face of mass protests, US and China tensions, and terrible economic news, it would be wise to take a few short positions to protect your downside and increase your alpha over the long term. Yes, the economy is slowly reopening and there are unprecedented amounts of fiscal and monetary stimulus happening currently. But the stock market never goes from the bottom-left to the top-right without some sort of correction, and you do not want to get caught without some positions to benefit from the next pullback. Our deep learning algorithms paired with out Artificial Intelligence (“AI”) technology has identified several top shorts today.
The first top short today is Digital Ally Inc, with terrible factor scores assigned by our AI systems of F in Technical, F in Growth, F in Momentum Volatility and C in Quality Value. The stock recently popped higher as the body-camera making company has seen a surge of potential demand as protests increase around the country. However, the company promptly issued a massive (compared to its market cap) $5.1 million equity offering, sending the shares sharply lower. Expect more of the latter according to our deep learning algorithms. The stock is up 93.14% for the year, but the longer term trend is extremely negative.
Another micro-cap company worth a short according to our AI systems is Heat Biologics Inc HTBX , a biotechnology company engaged in developing therapies that activate a patient’s immune system against cancer. The stock has simply run too far recently, gaining 92.86% for the year, and our AI technology has assigned factor scores of D in Technical, C in Growth, D in Momentum Volatility and C in Quality Value for the company. Don’t believe in the recent rally, the stock looks extremely overbought here – according to our deep learning algorithms.
MannKind Corp MNKD is another small-cap biotechnology company on the top short list today, according to our AI systems. It has been assigned factor scores of F in Technical, F in Growth, C in Momentum Volatility and D in Quality Value, some of the worst today. The company focuses on the development and commercialization of inhaled therapeutic products for diabetes and pulmonary arterial hypertension. With negative earnings and a year-to-date rally of 9.92%, a short position is recommended from current levels.
Continuing the top shorts of biotechnology companies today is Brickell Biotech Inc. Even after losing 24% this year, and over 85% in the last full year, our deep learning algorithms thinks it is worth a short position. The stock has been given factor scores of D in Technical, F in Growth, F in Momentum Volatility and F in Quality Value, as not much seems to be going right for it this year. Future prospects appear bleak, so get in on the short while you can.
And finally, our last top short today is EyePoint Pharmaceuticals Inc – you guessed it, another biotechnology company. Clearly, our AI system has identified the small/micro-cap biotech sector as problematic right now. This company is engaged in developing and commercializing ophthalmic products for various eye diseases, but the stock has crashed 45.81% year-to-date and over 67% from its 52-week high made in the fall of 2019. Factor scores of C in Technical, F in Growth, F in Momentum Volatility and F in Quality Value point to further downside in the stock.