The stock market had a very interesting snapback on Thursday after a very nasty opening following Wednesday’s late sell-off. They did a retracement back to key resistance and in the last hour they rolled over again. We took a look at the shorts in our last video, so we’ll cover, not only some longs, but some of our recent swing trades to see how they are doing.
8X8 (EGHT) had a big day on Thursday, up 59 cents, or 85, on 2.1 million shares. It went from 7.14 to 8.10 before pulling back and closing at 7.14. That’s the best volume it’s had all year except for a big down-day in February. As a result, with this stock crossing the multi-year highs and closing right at the upper end of the range, it wouldn’t be surprising to see this stock continue its rising channel at some point and getting up to 10 plus. We’re holding off on any further swing trade until we see if it gets any downside or upside follow-through.
Hewlett-Packard Company (HPQ) had a big day on Thursday. We like this stock, but we’re worried about the 5-wave advance that has taken place over the course of the last several months since November when it went up to resistance, and then pulled back sharply in April, held, consolidated, and on Thursday, it exploded for 3.63, or 17%, on 88 million shares. This stock popped from an opening at 23.24, pulled back to 22.90, and then went to 24.95 right at our target at 24.90-25.00. It backed up a little bit but not much, and closed near the high end of the range right at key-lateral resistance. Based on the overall structure of the weigh pattern and the channel angle, it looks like this stock is headed to 29. That’s the next swing-trade target.
Nordion Inc. (NDZ) has an interesting chart. It shows a key breakout above key resistance, and Thursday’s breakout of 90 cents, or 12.6%, on 1.8 million shares, the biggest volume since February, gets it into the big-gap zone from the September disaster. There is some resistance slightly above here at the 8.15 range. If it gets through that, we could see 9 and then 10. It's also a potential swing trade here based on the breakout on Thursday on heavy volume.
ServiceSource International, Inc. (SREV) had a big breakout on Thursday as it moved across key-lateral resistance. The volume surged to 2.3 million shares, and it's another stock we would put out as a swing trade normally, but we’re waiting to see what kind of market follow-through it gets.
Other stocks on Harry’s Charts of the Day are ACADIA Pharmaceuticals Inc. (ACAD), Aegerion Pharmaceuticals, Inc. (AEGR), Ambarella, Inc. (AMBAImmersion Corporation (IMMR), MannKind Corp. (MNKD), Revolution Lighting Technologies, Inc. (RVLT), SolarCity Corporation (SCTY), Sarepta Therapeutics, Inc. (SRPT), TearLab Corporation (TEAR), Tesla Motors, Inc. (TSLA), MEMC Electronic Materials Inc. (WFR), and Weatherford International Ltd. (WFT).