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Clovis Oncology Inc (CLVS) had a very good day on Tuesday. It popped in the morning all the way up to 47, pulled back down to 38, which was a big drop, it popped again, formed a falling wedge in a perfect 5-wave decline, popped out of the wedge, and formed a beautiful bull coil. It moved out of the bull coil, made it up to 42 1/2, flagged, and closed-up 2.04, or 5%, to 42.52, on 4 million shares traded. On the daily chart, I like to see both swings, and then see it get through 40, which it did with a big thrust, but it pulled back, and literally ended up as an inside day. It finished strong. Let’s see if there’s a follow-through on Wednesday. My targets are in the 46-49 zone, and then I’m looking for 54. It has 5.2 days to cover.
Conatus Pharmaceuticals Inc. (CNAT), which we put a swing on Tuesday, had a huge day, up 2.77, or 141%, to 4.73, on 40 million shares traded. On Tuesday morning, it gapped up, ran up, and then pulled back, formed a double-top, and pulled back again. It looks like it is forming a coiling-type pattern. Let’s see what comes from this, whether it gets a breakout to the upside or pulls back and retests the lows. This is the pattern I’m looking at for a potential run back up and through resistance, which would get it up to 7.00, and then 8.00. There’s 3.64 days to cover.
Supernus Pharmaceuticals, Inc. (SUPN) is a great-looking chart, running up to resistance two days in a row, hitting 27.05, after running up 45 cents, or 2%, to 26.10, on 728,795 shares traded on Tuesday. It was kind of an inside day, but it was an up day,. I think that once it gets through 27.05-.10, I’m looking at 32-33 as the target. That may happen very quickly. It has 3.4 days to cover.
Tower Semiconductor Ltd. (TSEM) looks great. Now, it did have an inside day in a very narrow range, and actually dropped a dime to 19.70, on 1.1 million shares traded on Tuesday. I like this stock a lot. It seems to be the type of stock that would pop and pull back, pop and pull back several times, but it was a constructive day, despite that fact that it did make a lot of progress. Targets are 23 1/4-1/2 short-term, but 24, 25 1/2-26 are the intermediate-term targets. It has 2.9 days to cover.
Stocks on the long side included Akebia Therapeutics, Inc. (AKBA), Advanced Micro Devices, Inc. (AMD), Air Transport Services Group, Inc. (ATSG), Ciena Corporation (CIEN), Clovis Oncology Inc (CLVS), Conatus Pharmaceuticals Inc. (CNAT), CARBO Ceramics Inc. (CRR), Clayton Williams Energy, Inc. (CWEI), Editas Medicine Inc. (EDIT), Foresight Energy LP (FELP), Fred's, Inc. (FRED), Ferroglobe PLC (GSM), Hawaiian Holdings, Inc. (HA), Ionis Pharmaceuticals, Inc. (IONS), KEMET Corporation (KEM), CarMax Inc. (KMX), Magellan Petroleum Corporation (MPET), NeuroDerm Ltd. (NDRM), NVIDIA Corporation (NVDA), Impinj, Inc. (PI), Pier 1 Imports, Inc. (PIR), SkyWest, Inc. (SKYW), SodaStream International Ltd. (SODA), Supernus Pharmaceuticals, Inc. (SUPN), Tailored Brands, Inc. (TLRD), Tower Semiconductor Ltd. (TSEM), Tesaro, Inc. (TSRO), TTM Technologies Inc. (TTMI), Winnebago Industries, Inc. (WGO), and United States Steel Corp. (X).
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.