DMD, LOGI, PCYC, UVXY - Stock Charts to Watch
Charts of the Day video for Wed May 16th 2012
The stock market has come down pretty hard over the last couple weeks, and reached both the session and multi-week lows on Wednesday. It’s in oversold conditions, with the McClellan oscillator at -233, which is quite oversold, but not as steep as we’ve seen. We may have another day or two of this, but I think we’re getting close.
We’re going to take a look at some of the longs that are doing very well. The Boxer Shorts have been pounded relentlessly, and many of them have spiked down so sharply, they’re extremely oversold. We could get a two, three, four-day rally, and if we do, we could see some of the stocks here do quite well.
Demand Media, Inc. (DMD) had an interesting decline, it based, and then broke out of the breakaway gap, backed off three times below the moving average and the breakout point, and on Wednesday, it popped 63 cents, or 7 1/2%, on 854,000 shares, which is the best volume in a week. This stock closed at the high end of the range in the 9.09 area. Look for the short-term target in the 10 1/2 zone.
Logitech International SA (LOGI), one of our favorites, had a beautiful base, a breakout, a pennant or wedge, and on Wednesday, it popped 63 cents to 10.50, or 6.38%, on 1.5 million shares. The high for the day was at 10.84. Once it gets through there, look for something up around the 12.00 - 12.10 area short-term.
Pharmacyclics Inc. (PCYC), one of our Top 20 for the year, had been consolidating for 3 months, and on Wednesday, it jumped 1.97 to 29.31, or 7.2%, on 1.1 million shares. It closed right up against March’s high. That’s an indication that this stock might gap on Thursday for the next day or two, until it can break through, and run up to the next target in the 35-5 zone.
The ProShares Ultra VIX Short-Term Futures ETF (UVXY) major channel has been broken, the moving averages came down, and flat down, but the 10- and 21-day have turned up. The 50-day was pierced on Wednesday, and closed above it for the first time in a very long time, up 1.23 to 19.42, or 6.7%, on 14 million shares. It’s possibly a turnaround, but may very well test the level around 20, which is the short-term target. If it gets a pullback, watch it, and if it breaks out, the next target is 25 1/2, and then 30.
Other stocks in our Charts for the Day are Citi Trends (CTRN), the Direxion Daily Emrg Mkts Bear 3X Shares (EDZ), Lumber Liquidators Holdings, Inc. (LL), Patrick Industries Inc. (PATK), Threshold Pharmaceuticals, Inc. (THLD), VirnetX Holding Corp (VHC), Vringo, Inc. (VRNG), Xenoport, Inc. (XNPT).