"Sell in May and go away" -Wall Street Adage Here are a list of stocks that I find to be prime for a good pullback or crash based on the following criteria: 1. Parabolic Curve. 2. Daily RSI has recently hit >75. 3. Current or future daily RSI bearish divergence. The main strategy behind these trades are bearish RSI divergence in addition to extremely overextended stocks (parabolic). These stocks are not "Hard to Borrow" in many brokerages.
Warning: Parabolic stocks are high-momentum stocks that can keep on rising irrationally. Have multiple entries and start with small position sizes. Best entries are when it starts making new highs that is RSI divergent.
DDOG
DDOG has recently been in a parabolic run. 93 Daily RSI and touching the 3 standard deviations. Price gap below. A new high could be a good short entry.
SGEN
SGEN has long-term parabolic curve. Could be a nice entry if it makes a new high. It will likely be divergent. PYPL
PYPL has recently been going vertical. A new high will likely be divergent. Price gap below.
PTON
PTON has recently been parabolic. Daily RSI showing divergence. New high will likely also be divergent. Price gap below.
MDB
This likely still has a lot more to run. It's been forming a megaphone pattern. Watch how it reacts to the pattern resistance and wait for RSI divergence to form.
EVBG
EVBG parabolic long-term. Wait for new highs and/or RSI divergence.
W
This is starting to diverge. A new high could be a good short entry. Price gap below.
MASI
MASI is parabolic in long-term. Daily RSI divergence already showing. This could be a good short if it makes a new high.
MRNA
Parabolic and RSI already diverging. A good pullback is likely on the way.
Good Luck bears!
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