‘The greatest opportunity to short on Wall Street’: an overvalued corner of the market is set to blow up as recession looms, technical analyst says

• The “bubble is about to burst” in consumer staples stocks, says veteran market technician Jeff Bierman. 
• The sector outperformed the S&P 500 last year but now it’s “overbought and overpriced”.
• “The greatest opportunity to short on Wall Street, according to risk/reward, is consumer staples,” Bierman said. 

Investors sought refuge in consumer staples stocks last year as the broader equity market sank into bear territory, but that group is now in a bubble that’s on the verge of popping, says one veteran chart technician. 

“The greatest opportunity to short on Wall Street, according to risk/reward, is consumer staples. This is the beginning of the breakdown in consumer staples, for the long term,” Jeff Bierman, chief market technician at TheoTrade, said in a note this week.