Our technical scanner analyses hundreds of US equities across the S&P 500 and Nasdaq 100 each trading day, scoring every stock on a range of momentum, trend and volume indicators. When bear signals significantly outnumber bull signals, a stock surfaces as a potential short candidate — meaning the technical picture suggests further downside may lie ahead. Below are the five stocks that generated the strongest sell signals on 1 September 2026.
Important risk warning: Short selling is a high-risk strategy. Unlike a long position, losses on a short are theoretically unlimited, and stocks can move sharply against you on unexpected news. The technical signals below are analytical observations only and should never be the sole basis for a trading decision. Always size positions carefully and use appropriate risk management.
1. Edison International (EIX) – 16 technical sell signals
Price: $53.98 | Daily change: -23.07%
View the full technical analysis of Edison International
Edison International leads this week’s short-candidate list with 16 bear signals against only 7 bull signals, and its price chart tells a dramatic story. The stock suffered its worst single session in roughly a quarter of a century in mid-August, shedding nearly a quarter of its value in one day — a collapse not seen since the California energy crisis of 2001. The catalyst was the California legislature’s decision to strip wildfire liability protections for utilities from a bill that had been championed by Governor Newsom, leaving Edison exposed to potentially substantial legal and financial risk from future fire events.
The sector-wide sell-off also caught peers PG&E and Sempra in its wake, underscoring that this is not merely a company-specific issue but a structural regulatory concern for California-based utilities. With the legislative path to liability protection now uncertain, investors appear to be reassessing the long-term risk profile of the entire sector.
From a technical standpoint, a drop of this magnitude typically leaves behind significant chart damage — broken support levels, elevated selling volume and bearish momentum readings across multiple timeframes. While some analysts have suggested the stock may trade at a discount to earnings, the combination of regulatory headwinds and severely weakened technicals makes this one of the more closely watched short setups in the current market.
2. Wabtec (WAB) – 16 technical sell signals
Price: $285.93 | Daily change: -2.16%
View the full technical analysis of Wabtec
Wabtec matches Edison International’s bear signal count with 16 sell signals, though it carries only 3 bull signals, giving it one of the more lopsided ratios on today’s list. The rail equipment maker has been a strong operational performer — its second-quarter results showed revenues rising by double digits year-on-year, backlog growth was healthy, and margin improvement was evident. Full-year guidance was also revised upward, reflecting genuine business momentum.
The technical concern, however, appears to centre on valuation rather than fundamentals. Recent commentary has noted that the stock carries a premium valuation, and a report from late August highlighted that an insider trimmed their stake while the share price hovered near $297 — close to multi-year highs. That kind of insider activity, combined with stretched valuation multiples, can act as a headwind even when underlying earnings are growing.
It is worth stressing that Wabtec’s operational story remains intact, and several analysts retain a constructive view on the company’s aftermarket services business and fleet modernisation pipeline. The bearish technical setup here is primarily a valuation and momentum story, not a fundamental deterioration. Prospective short sellers should be mindful that strong earnings revisions could quickly reverse any technical weakness.
3. PG&E Corporation (PCG) – 14 technical sell signals
Price: $13.27 | Daily change: -20.06%
View the full technical analysis of PG&E Corporation
PG&E Corporation shares the same legislative catalyst as Edison International: the California legislature’s rejection of Governor Newsom’s proposed wildfire liability protections sent the stock down by roughly 20% in a single session in late August. With 14 bear signals and only 3 bull signals, the technical picture is clearly negative. The removal of proposed liability protections reintroduces a level of legal and financial uncertainty that investors had been hoping the new legislation would resolve.
The timing is particularly notable given that PG&E had been building a more constructive narrative around its business. Just weeks before the legislative setback, the company reported a solid second quarter and announced a substantial $73 billion grid investment plan through 2030, alongside a growing data centre pipeline. Some analysts had argued the stock remained undervalued even after recent gains, pointing to long-term earnings visibility as a reason to hold.
That positive backdrop has now been overshadowed by the regulatory reversal. At a price just above $13, the stock is trading near levels that reflect significant distress risk. While fundamental buyers may see value at these levels, the technical damage from a 20% single-day decline is considerable, and price action is likely to remain volatile until there is greater clarity on the legislative and liability front.
4. TKO Group Holdings (TKO) – 13 technical sell signals
Price: $182.61 | Daily change: -1.10%
View the full technical analysis of TKO Group Holdings
TKO Group Holdings, the parent company of WWE and UFC, appears on this list with 13 bear signals and 5 bull signals. The business itself continues to generate considerable interest from both analysts and institutional investors — the $7.7 billion Paramount deal for UFC rights has been widely cited as a transformational agreement that broadens reach, reduces barriers to entry for fans and strengthens the company’s negotiating position in future rights negotiations. Record UFC viewership figures have followed, lending credibility to that optimistic view.
Despite the strong fundamental narrative, the technical indicators are flashing caution. The stock has been trading near elevated valuation levels, and a debt-funded share repurchase programme announced earlier this year adds leverage to the balance sheet at a time when the technical picture is softening. While buybacks can support a share price over time, financing them with debt introduces additional risk if business conditions or interest rates move adversely.
The modest daily decline of around 1% on its own is unremarkable, but in the context of 13 bear signals and relatively few offsetting bull signals, the scanner is flagging a pattern of deteriorating momentum. Analysts remain broadly bullish on the fundamental case for TKO, which means prospective short sellers face a meaningful risk of being caught in a sentiment-driven rally if any positive catalyst emerges.
5. 3M (MMM) – 12 technical sell signals
Price: $171.83 | Daily change: -1.44%
View the full technical analysis of 3M
3M rounds out this week’s list with 12 bear signals against just 3 bull signals. The industrial conglomerate has had a genuinely encouraging period operationally — its second-quarter results handily beat Wall Street expectations, prompting management to raise full-year guidance. The announcement of a long-term supply agreement with Airbus for the A220 programme added further credibility to the company’s turnaround narrative, and several analyst price-target upgrades followed. The stock surged by more than 6% in pre-market trading on earnings day, suggesting real investor enthusiasm for the improving story.
The technical concern, then, is likely a function of the stock having run hard into that good news. After a sharp earnings-driven rally, momentum indicators can roll over even when the fundamental picture remains positive, as short-term traders take profits and the easy gains from the initial catalyst are absorbed. The ex-dividend date in late August may also have introduced some additional selling pressure as the shares adjusted.
It is important to emphasise that 3M’s turnaround credentials appear genuine, and the analyst community has become more constructive on the name. For those considering a short position based on the technical signal, the strong fundamental backdrop represents a meaningful risk factor that should be carefully weighed. Any further positive newsflow on earnings, contracts or litigation resolution could swiftly overwhelm the bearish technical setup.
Disclaimer: This article is produced for informational and educational purposes only and does not constitute financial advice, a recommendation to buy or sell any security, or an invitation to trade. All investments carry risk, and short selling in particular involves the potential for unlimited losses. Past technical patterns are not a guarantee of future price movements. Always conduct your own research and consult a qualified financial adviser before making any investment decision. The Wall Street Stock Investors Club and its contributors may or may not hold positions in the securities mentioned above.