The market had a very interesting, but very negative morning, and a very nice, late rally on Tuesday. Does it mean anything? Verdict is still out on that one, but we’ll see if they get a follow-through. There were a lot of stocks that acted positively. So, we’re going to go over some longs, and some shorts that got blasted, although, at this point, there may be some stocks that are over-extended to the downside, so there’s a need for some kind of backing and filling, or challenging overhead resistance, etc.
MaxLinear, Inc. (MXL) had a nice snapback on Tuesday, up 1.05 to 14.62, or 7.7%, on 2.9 million shares. We’ve been liking this stock all along. It has four legs up with a 3-wave corrective move, and could get as high as the low 20. But first, before it gets there, it has to take out 16.20. On Tuesday, it only got up to the 50-day moving average, and did back off. It wasn’t a great close, but still up on the day. The volume was the best since Nov. So if it begins to move, it may reach 18ish. That’s the target.
Primo Water Corporation (PRMW) has been phenomenal for three years. This stock has moved from under a dollar to 10 dollars, a ten-fold increase, and has consolidated now for four months. This base constitutes a good move. Tuesday’s action of a pop of 64 cents to 8.82, or 7.8%, on 131,100 shares traded. It does need better volume. The target is 9.60-5, and when it gets through that, it could go all the way up to 12 1/2-13.
Swift Transportation Company (SWFT) had a pretty good day on Tuesday, up 69 cents to 17.26, or 4%, on 3.9 million shares. The transportation sector, trucking, railroads, airlines, etc, are really picking it up, and could lead the market higher. Swift has gone from 11 3/4 up into the 16-17 zone and consolidated. If it gets through the 17 3/4 range, it should see 20 1/2-21, and maybe as high as 24-5. Those are the targets on Swift going forward. I like the way it looks. It may end up being a swing trade.
Other stocks on the long side included Direxion Daily Gold Miners Bear 3X ETF (DUST), VelocityShares 3x Inverse Crude Oil ETN (DWTI), ProShares UltraShort Bloomberg Crude Oil (SCO), Direxion Daily Energy Bear 3X ETF (ERY), First Solar, Inc. (FSLR), Direxion Daily S&P Biotech Bull 3X ETF (LABU), MaxLinear, Inc. (MXL), Primo Water Corporation (PRMW), and Swift Transportation Company (SWFT).
Stocks on the short side included Akamai Technologies, Inc. (AKAM), Brookdale Senior Living Inc. (BKD), Global Payments Inc. (GPN), j2 Global, Inc. (JCOM), Kate Spade & Company (KATE), Papa John's International Inc. (PZZA), Qlik Technologies, Inc. (QLIK), Qualys, Inc. (QLYS), and LendingTree, Inc. (TREE).