Harry's Charts of the Day videos are available to members on Monday-Thursday evenings, with one video per week available to non-members. Members please login and see Charts of the Day in the "Videos" menu dropdown.
CF Industries Holdings, Inc. (CF), like many others in the agriculture sector, ran on Tuesday, up 1.60, or 4.5%, to 36.85, on 10.5 million shares traded. This stock is one of our swing trades. Up three days in a row, it came from under 32 to Tuesday's high of 37, 5 points in the last three days. I’m expecting it to test its spike high on Wednesday at 37.72, which was the high in March of last year. If it gets through that, the next line of resistance is around 39 1/2. The targets are 38, 39, and 40.
Check Point Software Technologies Ltd. (CHKP) had a breakout on earnings on Tuesday, up 1.13, or 1.2%, to 98.92, on 1.8 million shares traded. Since it posted its fourth quarter and fiscal 2016 results last Friday, it has been doing quite well. Now, I’m looking for a run to 105.00. It has 9.2 days to cover.
Oclaro, Inc. (OCLR) is looking good, up 68 cents, or 7.3%, to 9.99, on 11 million shares traded. It looks like it wants to blow through the triple top area, and pop, or gap, or run on Wednesday. This stock could be headed to 13. Swing trade is on and it’s looking wonderful.
Potash Corporation of Saskatchewan Inc. (POT), in the agriculture sector, was up 98 cents, or 5%, to 19.87, on 16.6 million shares traded. That’s the best volume since August. It looks like it wants to see 21, and then 22 1/2. Once it gets through that we’ll see where it’s going.
Stocks on the long side included Allegheny Technologies Incorporated (ATI), Century Aluminum Co. (CENX), CF Industries Holdings, Inc. (CF), Check Point Software Technologies Ltd. (CHKP), Cypress Semiconductor Corporation (CY), E. I. du Pont de Nemours and Company (DD), International Paper Company (IP), Ingersoll-Rand Plc (IR), Freeport-McMoRan Inc. (FCX), Corning Incorporated (GLW), The Goldfield Chaorporation (GV), H&E Equipment Services, Inc. (HEES), II-VI Incorporated (IIVI), iRobot Corporation (IRBT), LSB Industries Inc. (LXU), The Mosaic Company (MOS), Potash Corporation of Saskatchewan Inc. (POT), Mercury Systems, Inc. (MRCY), Micron Technology, Inc. (MU), Northern Dynasty Minerals Ltd. (NAK), Oclaro, Inc. (OCLR), Universal Display Corp. (OLED), stx, Textainer Group Holdings Limited (TGH), Global X Uranium ETF (URA).
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.