Ditching School Stocks

I was running some scans and education stocks jumped out at me as looking particularly weak, despite their last few days of gains. Let’s look at Corinthian Colleges (COCO), but you can look at any other stock in this sector (Apollo Group (APOL), Career Education Co. (CECO), DeVry (DV)) and you see the same patterns of lower highs and lower lows. Even after its recent bounce off its 200 day MA, it’s most likely going to find resistance near its 50 day MA.

If you’re looking for an edge to play on the short side consider this sector. Observe that volume is declining and scaling in this week on market weakness, with stops at its 50 day MA, would be low risk with decent reward.