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It was another positive day on Wall Street on Monday. Despite the late sell off, we had a lot of stocks that trended nicely.
Ambarella, Inc. (AMBA), a swing trade of ours, is acting well. After it broke out of a base and a flag, it popped and flagged again for a week. On Monday, it spiked 2.42 to 57.44, or 4.4%, on 1.5 million shares. It looks like it’s headed to test 60 1/2. It may take a run up to the Dec high at 62. That’s my short-term target.
Swing trade BroadSoft, Inc. (BSFT) is acting well, up 97 cents to 45.76, or 2%, on 726,500 shares traded on Monday. It was up nicely for two weeks from 39 to Monday’s high of 46. More importantly, the long-term chart shows that it has a shot at moving into the low to mid 50’s in the 53-54 range.
Gigamon Inc. (GIMO) is doing great. It popped out of a flag on Monday and jumped 1.94 to 41.58, or 4.89%, on 1.2 million shares. Even though it just went through resistance, the channel top is in the 43-44 zone, and it looks to me like that is the swing target. Because of the angle of ascent, this could take off and run to the high 40’s eventually.
Teladoc, Inc. (TDOC) is one of our swing trades that is doing great. It advanced 60 cents to 16.05, or 3.88%, on 1.2 million shares on Monday. I firmly believe that it consolidated bullishly, and is set up to run to over 16.40. We’re looking at 18 and 20 as the next targets.
Stocks on the long side Energy Transfer Equity, L.P. (ETE), Acacia Communications, Inc. (ACIA), Ambarella, Inc. (AMBA), Advanced Micro Devices, Inc. (AMD), BroadSoft, Inc. (BSFT), Cemtrex Inc. (CETX), Eleven Biotherapeutics, Inc. (EBIO), Five Below, Inc. (FIVE), Gigamon Inc. (GIMO), GOL Linhas AÃ©reas Inteligentes S.A. (GOL), Joy Global, Inc. (JOY), Lannett Company, Inc. (LCI), Nintendo Co. Ltd. (NTDOY), Oclaro, Inc. (OCLR), TASER International Inc. (TASR), and Teladoc, Inc. (TDOC).
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.