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It wasn’t too bad of a day on Tuesday. Quite volatile. Lots of swings back and forth, but we had a lot of stocks that did well. Steel stocks and metal stocks have done well. Let’s take a look at some of them and see how they are doing.
Clayton Williams Energy, Inc. (CWEI), one of our swing trades, exploded on Tuesday 5.02 to 38.25, or 15%, on 912,103 shares traded. I know 912,000 shares is not much, but it’s already made it four waves up, and a fifth wave is well on its way. It could spike up. There’s some resistance at the 42 1/2 range, which is the short-term target. Then we’ll see if it can get up to 46-47.
CONSOL Energy Inc. (CNX) was a good swing of ours back in March, and continues to do well. It broke out of a flag on Tuesday, and popped 1.18 to 18.35, or 6.87%, on 6.4 million shares. It has 6.6 days to cover. The OBV is doing well. It looks like this stock wants to go higher. Some resistance may be a near-term target at 19 1/2, followed by the mid 20’s.
CyberArk Software, Ltd. (CYBR) stocks are acting well. The major declining channel was broken in May. It’s been trending beautifully. Popped on Tuesday, up 1.98 to 56.98, or 3.6%, on 1 million shares, and got through to near the top of the channel. There is some resistance. I’m looking for some acceleration to take this to the 63 range.
Exact Sciences Corporation (EXAS), a swing trade of ours, not only took the 15-dollar swing out, but it also took 17 out, all in one day, a move of 3.75 to 16.21, or 30%, on 29.8 million shares. But, it is at the top of the channel, and there is no lateral resistance, so there’s a possibility it could extend and get as high as 22 near-term. First, let’s see if it consolidates for two days and gets it up there.
Stocks on the long side included AK Steel Holding Corporation (AKS), BioTelemetry, Inc. (BEAT), Cliffs Natural Resources Inc. (CLF), CONSOL Energy Inc. (CNX), CryoLife Inc. (CRY), Clayton Williams Energy, Inc. (CWEI), Cypress Semiconductor Corporation (CY), CyberArk Software, Ltd. (CYBR), Cynosure, Inc. (CYNO), Eleven Biotherapeutics, Inc. (EBIO), Exact Sciences Corporation (EXAS), JetBlue Airways Corporation (JBLU), LogMeIn, Inc. (LOGM), Las Vegas Sands Corp. (LVS), Puma Biotechnology, Inc. (PBYI), Pacific Ethanol, Inc. (PEIX), United States Steel Corp. (X), and Yirendai Ltd. (YRD).
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.