JPMorgan Becomes Top Stock to Short as Market Declines

JPMorgan CEO Jamie Dimon

Let's check out three stocks that appear technically bearish and ready to short.

While we will not weigh in with fundamental analysis on these issues, we will pop the hood for a look at the charts.

Let's dig in:

1. Top Bank JPMorgan Reflects the Pain

The downtrend for JPMorgan (JPM) is clearly in tact, with lower highs and lower lows. There is no guessing as to when the selling is going to abate, but rest assured when it does stop the stock is probably due for a substantial rally.

But as we know, the trend is the trend and it is down, no dispute about that.

Money flow is positive but getting worse and the MACD is on a sell signal. RSI is bending lower at a steep angle, this means more downside is likely. We see the stock is well below the 200-day MA, and as such the short term moving averages are coming down fast.

There is a gap open from May last year near $240, let's target that spot here, put in a stop at $300 just in case.

2. Bell Not Ringing for Chime

Financial technology (engineering?) companies have been under a great deal of selling pressure, and no doubt they lean hard against a strong economy. When things start slowing down there is risk for these firms like Chime Financial (CHYM).

The chart shows a miserable looking downtrend channel, lower highs and lower lows mark the dominant force here. The channel is well-defined. RSI is making lower highs as well and not quite oversold yet.

Money flow just went bearish and the MACD crossed over for a sell signal this past week, just nothing bullish in this chart. Let's target the November lows and then some, perhaps a move down to $12 is in order. Put in a stop at $21 just in case, but this trend is very bearish here.

3. Semtech Fails to Hold the Uptrend Line

A huge disappointment for Semtech (SMTC) shareholders this week after an earnings miss and a sharp drop in the stock price. The trend has now shifted down after the stock failed to hold support.

A new channel of lower highs, lower lows is in place and that will continue until further notice. MACD just went bearish and the money flow is weak as well.

Nothing good on this chart but there are some downside targets ahead. The gap from August needs to be filled and that comes in around $62, a good first target. Beyond there we see potential to fill the gap around $52, but first things first.