Stocks This Week: Sell Short Corning And Omnicron

Stocks This Week: Sell Short Corning And Omnicron

The short sale recommendations have done well in this bear market. This coming week is June post-options (OPEX) week. As we can see in the histogram below, the S&P has historically been bearish in this interval since 1985. Given this outlook and currently weak technical condition of the market, the index is likely to fall further next week. However, this may be the last week of declining prices for some time. The composite of the one, four, and ten year cycles bottoms in late June and rises through July and August. This is the same cycle that accurately projected a weak second quarter. It may be wise to close out short positions at the end of the coming week.

S&P 500 Returns in Post OPEX Week in June

The trading recommendations are derived from an S&P 500 screen that combines seasonal rank and current relative strength.

Corning has weak relative strength and July is the weakest month of the year for its share price. The stock has fallen about 56% of the time in July. Both the weekly and monthly cycles are falling. Price may reach $28.5.

Corning Daily Graph

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Corning Monthly Cycle

Omnicrom Group also turns up on the bear screen. The stock is relatively weak. Price hit a new low last week and may fall to the $55-$60 area.

Omnicron Daily Graph

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