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Was it turn-around Tuesday? I don’t think so. But there were a lot of stocks that we follow and traded that did well on Tuesday.
Advanced Micro Devices, Inc. (AMD) had beautiful action on Tuesday, up 49 cents, or 7%, to 7.50, on 78.7 million shares traded. The wedge was taken out with good volume. Strong OBV is telling me that this is going higher to 8.00, and then 9-10.00.
NVIDIA Corporation (NVDA) is fantastic. On Tuesday, it was up another 1.16, or 1.64%, to 71.86, on 10 million shares traded. This stock continues to push and looks to me like it’s going to the mid-to-high 80’s.
Stocks on the Short Side.....
ATHENAHEALTH, INC. (ATHN) finally is collapsing, down 4.59, or 5%, to 108.37, on 741,900 shares traded, and has dropped in the last week from 134 down to 108. The 108 break through to the 119-120 zone is what I think accelerated this stock. At this point, I’m actually looking for further downside under 100 towards 95, and then maybe 88.
Luxoft Holding, Inc. (LXFT), a Boxer Swing short, has a long coiling, bear coil two waves down, and possibly three and four down. The fifth wave could get ugly. On Tuesday, it was down 65 cents, or 1.27%, to 57.00, on 134,100 shares traded. If it breaks 46, this stock could fall away hard to the high 30’s.
Stocks on the long side included ACCO Brands Corporation (ACCO), Advanced Micro Devices, Inc. (AMD), Blueprint Medicines Corporation (BPMC), CoreLogic, Inc. (CLGX), Crane Co. (CR), Clayton Williams Energy, Inc. (CWEI), VelocityShares 3x Inv Natural Gas ETN (DGAZ), New Oriental Education & Technology Group Inc. (EDU), Direxion Daily Jr Gld Mnrs Bull 3X ETF (JNUG), Direxion Daily Gold Miners Bull 3X ETF (NUGT), NVIDIA Corporation (NVDA), Swift Transportation Company (SWFT), Tilly's, Inc. (TLYS), Vale S.A. (VALE), and Valero Energy Corporation (VLO).
On the short side, stocks included athenahealth, Inc. (ATHN), BJ's Restaurants, Inc. (BJRI), DexCom, Inc. (DXCM), G-III Apparel Group, Ltd. (GIII), Luxoft Holding, Inc. (LXFT), The Michaels Companies, Inc. (MIK), Rogers Corporation (ROG), Gentherm Incorporated (THRM), Texas Roadhouse, Inc. (TXRH), and Veeva Systems Inc. (VEEV).
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.