The market sentiment surrounding SolarCity (SCTY) is anything but sunny with the shares down 56% year-to-date and 40% of its float sold short. Michael Parness, CEO of Trendtrade.com, said investors should consider shorting the solar provider because the future does not look bright for the stock. ‘It’s up about 40% since its recent lows and with the market hitting key resistance levels here at S&P 2,000 I think this is a good entry point for the short side,’ said Parness. Parness also recommends shorting Netflix (NFLX), which has seen its shares fall 12% so far in 2016 after a particularly volatile ride last year. Parness said a trend he has been seeing with Netflix is that the stock has consistently sold off into its quarterly earnings report. Netflix reports first quarter results on April 13. ‘I think with the stock near resistance at around $100 this is a good entry point and the stock will go to $75 or lower,’ said Parness.
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