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Akorn, Inc. (AKRX) is doing well. On the chart, you can see the base, breakout, and pullback. We gave you a by on the swing thinking this is going to be temporary. On Tuesday, it has a nice reversal, running up to a high of 35.40, before pulling back and closing up 1.05 or 3.28%, to 33.04, on 5.2 million shares traded. That’s the best volume in about five sessions. Resistance is at 33.60, and then 35. If it gets through there, I’m looking for 39-39 1/2. It has 5.26 days to cover.
Akari Therapeutics, Plc (AKTX) is recovering from a big pullback, going from 6 1/4 to 22.20, and then had a nasty pullback that lasted a week, taking it down nearly 10 points. On Tuesday, it reversed 1.66, or 12 1/2%, to 14.97, on 707,875 shares traded. The volume picked up a little, but not enough to make it special. Resistance is at 15, and if it gets through that, I’m looking at the 18 1/2-19 zone as the target on this one.
Sears Holdings Corporation (SHLD) just keeps looking good. After a couple days that it rested, it pulled back near the top of the prior peak, and then held and popped. It was only up 52 cents, or 4%, to 13.99, on 1.6 million shares traded, but with 9.2 days to cover, I’m looking for a run to 18 on this one.
Supernus Pharmaceuticals, Inc. (SUPN) popped out of a little wedge on Tuesday. It didn’t close great, but it was still up 60 cents, or 2%, to 31.85, on 532,147 shares traded. It looks to me like it wants to go up to the 35-6, maybe even the 37 range. It has 3.9 days to cover.
Stocks on the long side included Akorn, Inc. (AKRX), Akari Therapeutics, Plc (AKTX), Blue Buffalo Pet Products, Inc. (BUFF), CBL & Associates Properties, Inc. (CBL), Majesco Entertainment Company (COOL), Everbridge, Inc. (EVBG), GNC Holdings, Inc. (GNC), Highpower International, Inc. (HPJ), Immunomedics, Inc. (IMMU), Imprimis Pharmaceuticals, Inc. (IMMY), Kronos Worldwide, Inc. (KRO), Lumber Liquidators Holdings, Inc. (LL), MiMedx Group, Inc. (MDXG), MicroVision, Inc. (MVIS), Sears Holdings Corporation (SHLD), Stratasys Ltd. (SSYS), Supernus Pharmaceuticals, Inc. (SUPN), Titan International, Inc. (TWI), Boingo Wireless, Inc. (WIFI), and XOMA Corporation (XOMA).
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.