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What a nice day on Wall Street on Monday, reversing from Friday’s huge drop. It had an opening gap down, Nasdaq 100 going from 4660, and running up to 4772, more than 115 points from top to bottom. The S&P 500 went from under 2120 to 2163, in nice, 45-degree angles, but I would be careful on Tuesday.
Exact Sciences Corporation (EXAS) looks really good, up 24 cents, or 1.27%, to 19.07, on 3 million shares traded. It had a nice reversal off support, 50-day, lateral price support, going from 17.61 to 19.08, closing just a penny off the high on a nice reversal day. I want to see if it gets up to the 20.29 zone. If it gets to 20-20.05 we’re going to have a run-on. I’m looking for wave five, which could take this stock up substantially.
Exelixis, Inc. (EXEL) looks great, up 42 cents, or 3.5%, to 12.40, on 4.3 million shares traded. on Monday I love the way this stock came down, held at the double top, consolidated with reversal day off the low, and basically tested the bottom of the channel. It could be spiking up towards 15 pretty shortly. Keep an eye on this one. It has 6 days to cover.
Nektar Therapeutics (NKTR) is one of my favorite biotech’s this year. It was up 66 cents, or 3.56%, on 1.2 million shares traded on Monday. I really like the way it’s acting, even though it pulled back, but it snapped back from 18.58 to 19.32, and closed at the highs for the day going away. The volume was solid but not strong. The next target is 21 1/2, and then 23.
Puma Biotechnology, Inc. (PBYI) had a breakout day on Monday, up 4.92, or 8.35%, to 63.82, on 806,616 shares traded on Monday. It popped, consolidated, had a breakout day 3 weeks ago, and popped and ran. I expect the same with Monday’s breakout. I’m looking for 72, and then 74 as targets.
Stocks on the long side included Acacia Communications, Inc. (ACIA), Ambarella Inc. (AMBA), Accelerate Diagnostics, Inc. (AXDX), bluebird bio, Inc. (BLUE), Clovis Oncology Inc (CLVS), Conns Inc. (CONN), Clayton Williams Energy, Inc. (CWEI), Exact Sciences Corporation (EXAS), Exelixis, Inc. (EXEL), Gigamon Inc. (GIMO), Himax Technologies, Inc. (HIMX), Momo Inc. (MOMO), NII Holdings Inc. (NIHD), Nektar Therapeutics (NKTR), NeoPhotonics Corporation (NPTN), Novavax, Inc. (NVAX), Puma Biotechnology, Inc. (PBYI), Resolute Energy Corporation (REN), Reata Pharmaceuticals, Inc. (RETA), Supernus Pharmaceuticals, Inc. (SUPN), Vuzix Corporation (VUZI), Wynn Resorts Ltd. (WYNN), and Xencor, Inc. (XNCR).
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.