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It was an up-day for the market, saved by AAPL and some of the Nasdaq stocks. Nasdaq did very well on Wednesday, but the S&P 500 not so much. It was a mixed session, but the technicals weren’t too bad at all. So, let’s see about the long and short side, and how some of the stocks we follow are doing.
bluebird bio, Inc. (BLUE) is doing very well. After the wedge popped, it’s now accelerating. On Wednesday, it was up 1.10, or 1.5%, to 75.60, on 737,644 shares traded. It should test near 80, maybe as early as Thursday, and then we’re looking at the mid-80’s and low 90’s. It has 9.2 days to cover. That should fuel the fire.
Cara Therapeutics Inc. (CARA) hit my 17 target on Wednesday with a 17.20 high before backing off. Still, it was up 1.17, or 7.6%, to 16.49, on 4.7 million shares traded. That’s huge volume for this stock, the biggest volume for the year, so far, on an up-day. It had 5-wave advance near resistance. Caution should be taken in this zone on the premise that it may pull back and consolidate, but momentum could carry it a little bit further towards 18.
Stocks on the Short Side….
Carter's, Inc. (CRI) is still falling and looking pretty bad. On Wednesday, it was down another 1.05, or 1 1/4%, to 82.70, on 690,087 shares traded. The bottom of this channel is beckoning, in my opinion. I’m looking for a move down towards 73-74.
Signet Jewelers Limited (SIG) is continuing to look bad. It was down another 66 cents, to 77.01, 1.5 million shares traded on Wednesday. It now only tests the 72-3 range, but takes it out and drops into the low-to-mid 60’s.
Stocks on the long side included Apple Inc. (AAPL), Acxiom Corporation (ACXM), Achaogen, Inc. (AKAO), Advanced Micro Devices, Inc. (AMD), Arconic Inc. (ARNC), bluebird bio, Inc. (BLUE), Cara Therapeutics Inc. (CARA), Carbonite, Inc. (CARB), Clovis Oncology Inc (CLVS), Cirrus Logic Inc. (CRUS), Exelixis, Inc. (EXEL), Direxion Daily Jr Gld Mnrs Bull 3X ETF (JNUG), Kronos Worldwide, Inc. (KRO), Direxion Daily S&P Biotech Bull 3X ETF (LABU), NVIDIA Corporation (NVDA), Pulmatrix, Inc. (PULM), tnav, Tower Semiconductor Ltd. (TSEM), and United Rentals, Inc. (URI).
On the short side, stocks included AutoZone, Inc. (AZO), BJ's Restaurants, Inc. (BJRI), Carter's, Inc. (CRI), Ellie Mae, Inc. (ELLI), L Brands, Inc. (LB), PVH Corp. (PVH), Red Robin Gourmet Burgers Inc. (RRGB), and Signet Jewelers Limited (SIG).
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.