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It was a sloppy day on Wall Street on Tuesday. A lot of stocks we follow did well, but it was a tough day. Most of them didn’t hold their gain.
Celldex Therapeutics, Inc. (CLDX) popped, went through the declining topsline and backed off. It was up 27 cents, or 6.75%, to 4.27, on 5.5 million shares traded on Tuesday. That was the biggest day on an up-day since March. It has a nice, multiple-month base pattern. Resistance is around 5.00, and when it gets up to 5.00, the next target is 6 1/4, and eventually 8 1/2 and 9 1/2.
Editas Medicine Inc. (EDIT) was a monster when it went public, exploding from 16.90 to the 40’s, has had a steady rollover since then, in April it came all the way down to 13, and on Tuesday, it popped 1.43, or 10.6%, to 14.92, on 718,665. That was the biggest volume on an up-day since the IPO. It looks like it broke out of a very long, perfectly formed wedge on Tuesday. I’m looking for a move to test 17 1/4. It may get up to 18-19-20, but let’s just take it one step at a time.
Etsy, Inc. (ETSY) had a nice day on Tuesday. After the recent pop, breakout, and swing that I put on it, it pulled back in a neat, orderly falling wedge on lower volume. It picked up on Monday, and followed through on Tuesday, backed off a little bit, but it was still up 65 cents, or 4.4%, to 15.37, on 2.7 million shares traded. That was better volume than even on Monday. If it can get through here, the channel-top target comes in around 17 1/2-3/4.
NOVAN, INC. (NOVN), a new IPO, was up 54 cents, or 2.76%, to 20.14, on 182,309 on Tuesday. After spiking off the lows in the 13-14 range, it went up 10 points to 23, and backed off. On Tuesday, it formed a consolidation, wedge-type pattern, the OBV is moving up, and if it can get up to 21, it will start to move. Also, the declining topsline comes in at about the 21 range. Any punch up through that area and it could take off and run. Short-term target is 23 1/2, intermediate-term target is mid to high 20’s.
Stocks on the long side included Acacia Communications, Inc. (ACIA), Advaxis, Inc. (ADXS), Aurinia Pharmaceuticals Inc. (AUPH), Canopy Growth Corporation (CGC.TO), Celldex Therapeutics, Inc. (CLDX), Direxion Daily Gold Miners Bear 3X ETF (DUST), Direxion Daily Jr Gld Mnrs Bear 3X ETF (JDST), Direxion Daily Jr Gld Mnrs Bull 3X ETF (JNUG), Direxion Daily Gold Miners Bull 3X ETF (NUGT), Silver Wheaton Corp. (SLW), VelocityShares 3x Long Silver ETN (USLV), Editas Medicine Inc. (EDIT), Etsy, Inc. (ETSY), GRIDSUM HOLDING INC. (GSUM), Momo Inc. (MOMO), NOVAN, INC. (NOVN), Progenics Pharmaceuticals, Inc. (PGNX), SINA Corporation (SINA), Vipshop Holdings Limited (VIPS), Weibo Corporation (WB), and YY Inc. (YY).
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.