Today I’m going to talk about market movers and a few promising ones as well.
American International Group (AIG), in particular, had a very solid session today. The 5-wave move that’s been taking place from early to mid-July until now has resulted in a more extensive consolidation. It coiled into a very narrow apex with a very narrow range on Friday, on the lowest volume in the last couple of weeks. That was followed by a reversal off the 36.30 range this morning, a 5-point move to 41.30, closing at 41.11, not far off the highs, on 55 million shares, a pick up in volume, and also a solid nearly 10% gain for the day.
From the lateral lines on the chart, not only is the gap high in early Sept, but also represents resistance going back a couple of years. A move across 43.75, or thereabouts, tomorrow with volume could be explosive.
Dendreon Corporation (DNDN), one of the biotechs for today, had a spectacular day today. It had a long multi-month coil after a huge run-up in March and April. It basically sat there between 20.00-25.00 for several months, narrowing, and then today it broke out with a thrust on 13.8 million shares, the biggest volume in nearly three months, and moved 3.62 or 15%. It’s a significant day for this stock, closing at a new all-time high excluding the April high. I would not be surprised to see a follow-through or some news soon about some kind of deal, partnership or even a take over potentially.
EDAP TMS S.A. (EDAP) has a very intriguing chart pattern. The triangular wedge pattern was broken. The stock backed off, though, and today the same thing, got up to 5.00 and then backed off. Both days were gains, 56 cents Friday on 4.9 million shares, and then backed off to 1.452 million shares today, but up 20 cents on the day. The volume and technicals, by the way, and the OBV are making new highs. Very. very bullish and if it gets over the 5.10-5.15 range, I expect it could explode.
Zoom Technologies, Inc. (ZOOM) exploded today after spiking up in Aug, then consolidating for about a month on positive results from their merger with Golden Lion. Up 212% today on a monster breakout. There was a strong surge in the morning followed by a beautiful bullish coil. The coil was broken with low volume at the end of that coil. The stock started to move and went from 6.75 to 14.25. A huge percentage gain. Only pausing for another coil around the 2:00-3:00 pm hour. The last hour alone it moved from about 11.00 to 14.25 before ending with a kind of consolidation.
Other stocks on Harry’s Chart of the Day to keep an eye on tomorrow and the next couple of days are OREX, MNKD, JAZZ, IFON, MELA. Lots of things going on. The market had a spectacular reversal today and closed at 21.39 on Nasdaq. So we’ll see how it goes tomorrow.
