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Axon Enterprise, Inc. (AAXN), formerly TASR, had a big drop in July, formed a rising wedge before it collapsed, double-topped, and rolled over, going from 75 to 42, it bounced, and on Tuesday it reversed and dropped another 1.54, or 3.4%, to 43.64, on 948,586 shares traded. This was one of the worst closes since May. It does have some downside support at 41, and if it gets ugly, we could see 37.
Daqo New Energy Corp. (DQ) formed a bear flag back in June, rolled over from the mid 40’s to the low 20’s, bounced around and formed a big wedge, and on Tuesday, it was down 1.53, or 5.77%, to 24.97, on 138,245 shares traded. If it breaks down look for 21, and 18 are targets.
IntriCon Corporation (IIN) dropped 1.00, or 2.83%, to 34.34, on 261,414 shares traded. The top on this was just too compelling. I gave the short around 52, it made it down to around 31, formed a bear flag, and on Tuesday it had a nasty reversal bar, after spiking up right to the channel top, it reversed and closed with a loss for the day. That’s what we call an engulfing bearish bar. I can see this going to at least 31, and it wouldn’t shock me if it went to the mid 20’s.
Polaris Industries Inc. (PII) we put out as a swing not too long ago. It broke support, and then rallied right back to it. It fell hard on Tuesday, dropping another 9.99, or 10%, to 91.63 from 101.62, on 719,606 shares traded. This one looks like it’s headed to 79-80.
Shutterfly, Inc. (SFLY) is getting slammed dunked and hard. This stock has come from June’s high of over 100, to Tuesday’s low of under 48.00, dropping another 2.15, or 4.33%, to 47.53, on 1.1 million shares. I would not be shocked if it makes a dive into the low 40’s
Vicor Corporation (VICR) was first a nice long stock that we had, and now it’s a short. Two obvious bear flags in the last six weeks tell me that it’s going lower. On Tuesday it was down another 3.13, or 8%, to 35.34, on 371,391 shares traded. Targets are 28, 24, and eventually 21.
On the short side, stocks included Axon Enterprise, Inc. (AAXN), AxoGen, Inc. (AXGN), TopBuild Corp. (BLD), Copart, Inc. (CPRT), CRISPR Therapeutics AG (CRSP), Cutera, Inc. (CUTR), Daqo New Energy Corp. (DQ), Electronic Arts Inc. (EA), Fortinet, Inc. (FTNT), GrubHub Inc. (GRUB), Installed Building Products, Inc. (IBP), IntriCon Corporation (IIN), IRadimed Corporation (IRMD), Intuitive Surgical, Inc. (ISRG), Medifast, Inc. (MED), Norbord Inc. (OSB), Polaris Industries Inc. (PII), PTC Inc. (PTC), PVH Corp. (PVH), Shutterfly, Inc. (SFLY), and Vicor Corporation (VICR).
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Days to cover is the amount of short interest divided by the company's average daily share volume. In other words, the number of days required to close out all the short positions. A higher number means more potential fuel to a stock’s rally as shorts cover, and thus accelerate the move, when the stock’s price rises.
On Balance Volume (OBV), developed by Joe Granville, is a running summation of volume on up-days minus volume on down days. OBV rises when volume on up days outpaces volume on down days -- and falls when volume on down days is stronger. A rising OBV reflects positive volume pressure that can lead to higher prices. Conversely, falling OBV reflects negative volume pressure that can foreshadow lower prices.