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It was a difficult start to the week on Wall Street on Monday. The markets were down most of the session, but at the end of the day they did come back, but still ended lower. It was a particularly difficult day for biotech stocks, but the oil stocks did well. Let’s take a look at Charts of the Day above and the stocks that did do well.
Stocks on the long side included Advaxis, Inc. (ADXS), Cemtrex Inc. (CETX), Callon Petroleum Company (CPE), California Resources Corporation (CRC), Constellium N.V (CSTM), Clayton Williams Energy, Inc. (CWEI), DepoMed Inc. (DEPO), Ebix Inc. (EBI), Emerge Energy Services LP (EMES), Energy Recovery, Inc. (ERII), Flotek Industries Inc. (FTK), GasLog Ltd. (GLOG), Resolute Energy Corporation (REN), Shopify Inc. (SHOP), SM Energy Company (SM), Sanchez Energy Corporation (SN), and Tronox Limited (TROX).
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.