The Biggest Losers – Asset Management Addition

• Posted by Greg Harmon
• on July 13th, 2011

From my days working at a large asset management firm (State Street, Ticker: $STT), I know how important the value of assets under management is to the bottom line. So when the pundits start talking about the potential for a market crater over debt ceiling negotiations or a Fed ‘requirement’ for QE3 I first look to see which charts are in the worst shape, set up to be the biggest losers. Here are the top three I found tonight.

Blackstone Group, $BX

Blackstone Group, $BX, is testing support at 15.90 for the third time since March. As it sits on top of it currently it has a Relative Strength Index (RSI) that is sloping lower and a Moving Average Convergence Divergence (MACD) indicator that is crossing negative. These support a further downside move. If it can get below 15.90 then it has support lower at 15.50 and 14.75 before 14.10. Short interest is low at just under 2%. Use the break down level area as a stop. Note that earnings are released July 21.

Eaton Vance Group, $EV

Eaton Vance Group, $EV, has already broken support at 29, tried to retake it Wednesday and failed. As it sits at 28.56 closing near the low of the day, it has support lower at 28.10 and then 27.38 before the gap down to 27.05. With a MACD that is crossed lower and a RSI pointing down, hop on for the ride lower. Short interest is a bit higher in this one at just under 6% and earnings are not released until August.

Federated Investors, $FII

Federated Investors, $FII, also has broken down through support at the 50% Fibonacci level at 23.76. It is sitting at support at 23.10 after a strong move lower following a retest of the breakdown. The next leg down sees support at 22.74 and then 22.00 before 21.00. The RSI is now moving lower and the MACD has crossed down, supporting more downside. This one is a bit trickier as short interest is over 12%. you might gain some comfort by playing this with a purchase of August 22.5 Puts, which closed Wednesday at 85c, and spreading them against the August 20 Puts as the price moves lower, or stopping them out on a move of the stock back over 24.00.

As always you can see details of individual charts and more on my StockTwits feed and on chartly.)

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