The stock market did not like the results of the election on Tuesday night. It was down 313 on the Dow, and had whopping losses on the S&P 500 and the NDX. We certainly cracked the back of this market. It’s getting oversold and could get some downside movement in addition to where it is now. The problem with oversold is that it can get more oversold. So until it actually reverses, we have to be cautious. In the meantime, we’ll look at both longs and shorts. Some stocks did well on Wednesday, especially for this market.
Centene Corp. (CNC) ran up from its spike low in June, going from the mid 20’s to the low 40’s, formed a falling wedge, popped out, flagged, and then on Wednesday, it exploded 4.01 to 43.88, or 10%, on 2.6 million shares. The long-term pattern shows how this stock had be swinging back and forth, but the key is the breakout above the right-hand V on a weekly basis could mean that it may be heading to much higher levels. At least a test of the 47 range short-term, and then maybe a test of the double top at 50 – 51.
Tenet Healthcare Corp. (THC) exploded on Wednesday, up 2.39 to 27.34, or 9.6%, on 9.5 million shares. That’s the biggest volume in 5 or 6 weeks. It looks like it may be headed to the 30-dollar level short-term.
Stocks on the Short Side…
Acacia Research Corporation (ACTG) had a massive top formation and broke down sharply in July, In Aug and part of Sept, it was in a rising wedge that failed. It came down to test support in a corrective-type bear wedge, and then rolled over, down 92 cents, or 4%. It looks like it’s about to crack and test the 22 range. It is potentially headed to the mid-to-high teens.
Buffalo Wild Wings Inc. (BWLD) has been sitting in a bear flag for 2 weeks after getting crushed 2 weeks ago. On Wednesday, it was down 2.02, or 2.6%. If this stock cracks, it’s going to come down hard for at least a quick test of the 70 range. A move below that is to the mid-60 range.
Other stocks on Harry’s Charts of the Day are eHealth, Inc. (EHTH), Direxion Daily Financial Bear 3X Shares (FAZ), HCA Holdings, Inc. (HCA), Mobile Mini, Inc. (MINI), Novogen Limited (NVGN), Smith & Wesson Holding Corporation (SWHC), Direxion Daily Small Cap Bear 3X Shares (TZA), and ProShares Ultra VIX Short-Term Fut ETF (UVXY).
Stocks on the short side include Berry Petroleum Co. (BRY), Cepheid (CPHD), Chart Industries Inc. (GTLS), Mellanox Technologies, Ltd. (MLNX), and Titan Machinery, Inc. (TITN).