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It was a pretty good day on Wall Street on Monday. The markets ran early, consolidated midday, and backed off, but gave back just a little bit of it. The stocks we follow, particular new, recent issues, really had a big day. We’ll just have to take a look at the charts and get a clear picture of them.
Clayton Williams Energy, Inc. (CWEI), a swing trade of ours, officially made it's 200% since our recommendation. It was under 20 back in May, and reached 60 at one point. It had a 60.18 high on Monday, up 3.62 to 59.42, or 6.5%, on 528,013, with 5.9 days to cover. This stock may still get to the 69-70 range at the top of the channel, but it is extended, so be careful.
Eleven Biotherapeutics, Inc. (EBIO), one of our swing trades, extended nicely, reaching 5.77 before backing off on Monday, up 64 cents, or 13 1/2%, on 9.1 million shares. That was the biggest volume in two weeks. I like the way this is acting, and the 8-dollar target may be at hand, but it will take a real push, because this stock is only at the 5.35 range.
Gigamon Inc. (GIMO) has been great since the April time period when it quickly got to the first target and pulled back, then moved dramatically from 28 to Monday's high at 47, up 91 cents closing at 46.82, or 2%, on 665,386 share traded. It’s in a nice rising channel and I do think it has a shot of getting up toward the 52 range. There’s 4.27 days to cover.
Progenics Pharmaceuticals, Inc. (PGNX) is doing great. After the pop and flag, it broke out, had a little 3-day wedge, and on Monday, it popped again, up 23 cents to 6.91, or 3.4%, on 1.4 million shares. That’s the best volume in four days. I’m thinking this stock is headed up toward 8-8 1/2. It has 3.67 days to cover.
Stocks on the long side included Acacia Communications, Inc. (ACIA), Alarm.com Holdings, Inc. (ALRM), The Chemours Company (CC), Callon Petroleum Company (CPE), Clayton Williams Energy, Inc. (CWEI), Eleven Biotherapeutics, Inc. (EBIO), Exact Sciences Corporation (EXAS), Five9, Inc. (FIVN), Flotek Industries Inc. (FTK), Gigamon Inc. (GIMO), GoPro, Inc. (GPRO), Healthways, Inc. (HWAY), Micron Technology, Inc. (MU), Nektar Therapeutics (NKTR), Oclaro, Inc. (OCLR), Ocular Therapeutix, Inc. (OCUL), Progenics Pharmaceuticals, Inc. (PGNX), Resolute Energy Corporation (REN), U.S. Silica Holdings, Inc. (SLCA), Talend SA (TLND), Twilio, Inc. (TWLO), Twitter, Inc. (TWTR), VelocityShares 3x Long Crude Oil ETN (UWTI), Weibo Corporation (WB), 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.