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The markets had a pretty good day Tuesday morning. It pulled back in the afternoon, but it was a strong day on Wall Street. A lot of our stocks did well, so let’s take a look at some of them.
Cemtrex Inc. (CETX) had a nice pop, especially near the end of the day when it really ran. It moved up, pulled back to where I gave you a swing on it at about 4.80, then it pulled down for another few minutes, and then exploded 71 cents, or 16%, to 5.05, on 1.5 million shares traded. I put a swing on it because I think it’s going to run up to the 5 3/4-6 range, and maybe even 7.00, or more, eventually.
Emergent BioSolutions Inc. (EBS), another stock I put a swing trade on, because this one seemed like the big break away gap on the contract announcement, and then the inside day on Monday, got it ready to pop 74 cents, or 2.2%, to 34.21, on 659,037 shares traded on Tuesday. I’m looking for a test of 37, and maybe the low 40’s. It has 10 days to cover short.
Lannett Company, Inc. (LCI) popped 85 cents, or 3.5%, to 24.95, on 843,834 shares traded. I think I may have put a swing on it prematurely. What I missed was the lack of volume and lack of technicals. Beware, I am going to put strict stops on this one underneath 22-22.40. I don’t want to see it under that line because then it could roll over. The good thing is that it moved up across moving averages, which it crossed over, and then popped on Tuesday, before backing off nearly a point. Right now, it could be one big wedge and break down from it. That’s why I want the stop protection. The upside, however, if it does accelerate, could see this stock trading in the 29-30 range. It has 6.7 days to cover, which could fuel the fire, so to speak.
Opko Health, Inc. (OPK) is looking good. It has a long-term head-and-shoulders, or basing pattern, and it may be coming out of it right now. It traded 26 cents, or 2.2%, to 11.91, on 6.2 million shares traded. That's a total of 13 million shares traded in the last two sessions with Monday’s pop, and then the follow-through on Tuesday. I then put a swing on it on Tuesday. I think it has room for 13, 15, and 17, potentially, as targets. It has 18.6 days to cover.
Stocks on the long side included Argan, Inc. (AGX), Achaogen, Inc. (AKAO), Asure Software, Inc. (ASUR), Avianca Holdings S.A. (AVH), Cemtrex Inc. (CETX), Callon Petroleum Company (CPE), Emergent BioSolutions Inc. (EBS), Lannett Company, Inc. (LCI), Organovo Holdings, Inc. (ONVO), Opko Health, Inc. (OPK), Orbotech Ltd. (ORBK), Terex Corporation (TEX), Tailored Brands, Inc. (TLRD), Tower Semiconductor Ltd. (TSEM), Western Digital Corporation (WDC), and Vericel Corporation (VCEL).
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.