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It was kind of a sloppy day on Tuesday, but an interesting day in terms of the formation between the Nasdaq 100 and the S&P 500. We had a lot of stocks that did well, so let's take a look at them.
Ariad Pharmaceuticals Inc. (ARIA) broke out of a flag a week ago, and it has been moving steadily every day since in a very sharply rising angle. Tuesday was a stellar day for this stock on takeover speculation, up 79 cents, or 6.5%, to 12.90, on 13 million shares traded, and reached a high of 13.05. That’s triple the average volume, and the biggest volume since July. Look for a move to 15, and then 18.
CoLucid Pharmaceuticals, Inc. (CLCD) became one of the better swing trades for this year, when it popped and it exploded, it pulled back, and then I put the swing on it. It then ran right back up to 35.48 on Tuesday, up 3.80, or 12 1/2%, to 34.00, on 1.65 million shares traded. It’s extended and reached my swing trade target. I would look for pullback opportunities, because I don’t think this is done yet.
Puma Biotechnology, Inc. (PBYI) was up a whopping 6.21, or 10 1/2%, to 65.16, on 3.4 million shares traded. I don’t think this stock is done yet. I think it’s possible for this stock to make it up in the 82 range to 80-82. 3.5 million shares traded is the biggest volume this stock has ever had on an up-day, going back some three years. It could back and fill in here, so let’s see if it holds the breakout. It would be wonderful if it held Tuesday’s low at 64ish range for now.
Zynerba Pharmaceuticals, Inc. (ZYNE), which I put a swing on Tuesday, popped 12 cents, to 12.02, on 508,223 shares traded. That’s the second biggest volume in about nine months. It may be starting a new wave up to 14, and then 18. The big rounded bottom that formed during this last year, and then a pop, falling wedge, and breakout, and the line of resistance that it took out on Tuesday, is significant. Let’s see if it will extend and run up toward 17 3/4-18, if it gets through 15, which is the near-term target.
Stocks on the long side included ariaAerogrow International, Inc. (AERO), Aerie Pharmaceuticals, Inc. (AERI), Airgain, Inc. (AIRG), Ariad Pharmaceuticals Inc. (ARIA), Cara Therapeutics Inc. (CARA), CoLucid Pharmaceuticals, Inc. (CLCD), Clovis Oncology Inc (CLVS), Eagle Pharmaceuticals Inc. (EGRX), Esperion Therapeutics, Inc. (ESPR), Exact Sciences Corporation (EXAS), Exelixis, Inc. (EXEL), Hudson Technologies Inc. (HDSN), Direxion Daily S&P Biotech Bull 3X ETF (LABU), Puma Biotechnology, Inc. (PBYI), Sorrento Therapeutics, Inc. (SRNE), Sarepta Therapeutics, Inc. (SRPT), VelocityShares 3x Long Natural Gas ETN (UGAZ), and Zynerba Pharmaceuticals, Inc. (ZYNE).
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.