Today I’m going to talk about six longs and six shorts. There’s reason for optimism on both sides.
Starting with longs, Human Genome Sciences (HGSI), after a 2-month base, broke out with big energy yesterday on huge volume. It actually had a beautiful follow-though today and ran from just about 24 to over 28, so more than 4 points today, on nearly 30 million shares. That is down a little bit from yesterday’s 41 million, but still, a very strong day. It certainly looks like, since this is 9-year highs, that this could go higher. I’m looking for something in the low 30s, potentially, short term.
Revlon Inc. (REV) has been a monster in the last week, as you can see from gapping up around 6 to reaching 11.36 today, nearly doubling in just the last 4 sessions. Yes, it’s ahead of itself, but I wanted to point out that today’s action takes out a 12-year declining channel. Major turn around underway, potentially, and that’s something to be cognizant of. It’s had a big run and it may need to come down and do a consolidation for a period of time, but it’s worth watching as momentum may not have been “here” yet.
Other longs that you will want to take a look at on Harry’s Chart of the Day are: Protalix Biotherapeutic, (PLX), Qiao Xing Mobile Communication Co, Ltd. (QXM), Trina Solar Ltd. (TSL), U.S. Energy Corp. (USEG).
Now, let’s move over to the Boxer Short’s List and show you where there’s about a half dozen stocks that look rather negative to me.
As you can see, Dollar Thrifty (DTG) plunged on heavy volume and basically has gone nowhere but sideways for a couple of days, three days. It did bounce today 84 cents off this key lateral support level. A break of that level could quickly move it down to 15 – 15 1/2 or even lower. So that’s a stock I’d keep my eye on, on the short side, particularly, if it does snap back towards that 21 – 22 zone on lower volume and with negative technicals.
Pool Corp. (POOL), a sporting goods organization, broke its trend line, formed a flat head and shoulders top trading range, broke down hard, and also formed, like many of the other stocks, a real mini bear wedge or bear pennant, whatever you want to call it. Certainly this is cause for concern technically. With the technicals in poor shape, I would have to say that any snap backtowards 20 3/4 – 21 may be used as a possible shorting opportunity.
Fuqi International Inc. (FUQI), Goodyear Tire & Rubber (GT), Monsanto Company (MON), Monolithic Power Systems (MPWR) are also on the short list on Harry’s Chart of the Day.
There you have it, some longs and shorts. Let’s see how the market goes and which ones break out and drop, but those are my recommendations for the next day or two.
