What happened this past week means that sales are the only thing that can be considered at this time. Having said that, sales are not necessarily offering a high probability of success (perhaps no better than 55-45), which means the sales done have to be carefully hand-picked, and even then, the ratings on the trades will not be high.

In looking at a lot of charts this week and this coming week being the end of the month, most of the stocks I looked at are going to close near the high of the month, meaning that they are going to be better shorts next week than this week. Having said that, I did find two stocks that for its "own" reasons, suggest that this week, shorting them can be considered.

RBLX Friday Closing Price - 117.52

RBLX is a global platform that bring people together through game playing. The stock has recently soared from $50 to $150 (tripled in price) over the past 4 months. Most rating companies have it rated as a buy (or strong buy) with a $175 objective. None of the above are reasons to short the stock. Having said that, the stock has lost $12.7 million in value over the past 16 days due to allegations of child endangerment and exploitation, with multiple lawsuits filed by families and state attorneys general in 2025. Further negative coverage highlights issues with addictive game design, financial exploitation of users and developers, and persistent moderation failures.

Because of the above news and in looking at the chart, RBLX generated a breakaway/runaway gap to the downside that made the stock generate a sell signal as well as a failure signal that looms negative. From what I read about these problems, they are not likely to go away anytime soon. This fundamental and chart situation has opened to opportunity to short the stock with a very good risk/reward ratio.

The breakaway gap in RBLX is between 135.65 and 135.08 and the runaway gap is between 124.97 and 121.30. The sell signal on the daily closing chart was given when it closed below 118.12. To the downside, there is absolutely no intraweek support until the 100.00 level is reached, and even then, the support is very, very minor. This short trade is absolutely a gamble given that what the company produces in very popular and in high demand. By the same token, the child endangerment problems that have surfaced is also something that most people stay away from. That makes this trade attractive is that the risk/reward ratio is very good and the present momentum (as well as the charts) are in favor of the bears.

Evidently, closure of the breakaway gap at 124.97 would be a signal to cover the shorts immediately. Nonetheless, in looking at the daily closing chart, a confirmed close above 118.12 would also be a valid reason to cover the shorts. The stock did close in the upper half of the week's trading range, suggesting further upside above last week's high at 121.30 will be seen this week. It is not unusual for the traders in such a fundamentally strong stock to test (and even get into) the gap to try to close it and get rid of that negative. This means that this week, RBLX could give the bears a good opportunity to short the stock at an attractive entry point that has a close by stop loss point that is dependable, as far as determining the future of the stock.

Sales of RBLX above 121.30 and using a stop loss at 124.97 and having a minimum 100.65 (minor daily close support) offers a risk/reward ratio of 5.6-1. My rating on the trade is 2.75 (on a scale of 1-5 with 5 being the highest).

GRPN Friday's Closing Price - 26.69

GRPN is a global marketplace that connects consumers with local merchants by offering discounted goods and services. There are 5 rating companies following the stock, where 2 are bullish, 1 is somewhat bullish and 2 are bearish. The high outlook if for $47 and the low outlook is $17. Having said that, recent news as well as the charts, suggest the lower number (or at least lower than Friday's closing price) is the most likely.

One recent problem that has crept up on GRPN is that the shares tumbled 8% following a critical report by short-seller Captain's Log, which cast doubt on the company's recent performance and questioned the sustainability of its business model. The report alleges that Groupon's purported turnaround, particularly in its North America Local segment, is misleading and accuses the company of engaging in questionable accounting practices.

Chart-wise, GRPN has dropped 29% in price over the past three weeks and closed near the low of the week on Friday, suggesting further downside below last week's low at 26.26 will be seen this week. On the monthly chart, the stock is having a key reversal, having made a new 49-month high and now trading below last month's low. On the daily chart, the stock generated a sell signal 3 weeks ago when it broke the 29.06 level, which has now been successfully tested, meaning the downtrend is continuing.

To the downside and on the daily closing chart, GRPN has some very, very minor support at 25.22 but then nothing until the previous 24 month daily closing high at 19.89 is reached, That level also finds that the 200-day MA, currently at 19.96, is there to offer additional support. As such, that area is the target of this mention.

To the upside, GRPN now shows intraweek resistance at last week's high at 29.52, and given that if the stock goes above that high this week, it would suggest that the move down is over, that should be 100% reason to cover. Nonetheless and on the intraday 10-minute chart, the 200 10-minute MA is at 27.76 and that line has not been broken (or even tested) for the past 10 days, and if the downtrend is to continue immediately, that line should not be broken. The previous 10-minute intraweek high (above that line) is at 28.38 As such, my stop loss on the trade will be at 28.48.

This all means that if GRPN is shorted at Friday's closing price of 26.69 and the stop loss is at 28.38 and the objective is 19.96, the risk/reward ratio is 3.75-1. My rating on the trade is 3.25 (on a scale of 1-5 with 5 being the highest.