Hasbro just had worst month in 18 years, and chart points to more pain

With Halloween over, a handful of stocks are coming off a major scare.

Twitter, Hasbro, Boeing, eBay, Texas Instruments and McDonald’s plummeted in October in some of the worst performances on the S&P 500. In fact, McDonald’s suffered its worst month since 2009 and Hasbro’s had its worst since 2001.

One of those names could be in for an even worse fright, Piper Jaffray chief market technician Craig Johnson said Thursday on CNBC’s “Trading Nation.”

“The biggest trick out there still is going to be Hasbro. Here’s a stock that’s been in a failed topside breakout; it’s sitting now at the middle point of this range. To me it looks like you’ve got a 2-to-1 downside versus upside potential here in the stock, back down toward $75,” said Johnson.

Hasbro tumbled 18% in October. A decline to $75 would mark another 23% downside. It has not closed below that level since 2016.

“That’s still the spookiest stock out there out of this list at this point in time,” said Johnson. “This is one where I’d be taking the money and moving on.”

Michael Binger, president of Gradient Investments, sees two other stocks on the brink of breaking down even more.

“The two that I would tend to stay away from — number one is Boeing,” Binger said during the same segment. “We still have no timeline on the 737 Max. It appears that there are further issues and groundings on some other planes they have. To me, there’s a potential of a CEO disruption there. I think the regulator is going to watch this company like a hawk.”

Boeing has been under pressure for the bulk of this year after the groundings of its 737 Max jets following two fatal crashes. In addition, Boeing said last month that inspections of 810 of its 737 NG planes found 38 structural cracks requiring repair and replacement of the bad parts.

Boeing shares are down 24% from a record high set in March.

“The other one that I think that I would stay away from and could fall further right now is Texas Instruments. I still think the semiconductor industry is more of a cyclical than a growth industry,” said Binger. “They just significantly cut their earnings in the last earnings report. This company is going to earn [around] $5 for three years in a row, so it’s really no growth.”

Texas Instruments declined 9% in October, while the SMH semiconductor ETF spiked 7%. Shares spiraled earlier this month after the chipmaker missed on earnings and issued a downbeat forecast.

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