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It was a pretty interesting day on Thursday. Kind of volatile Thursday morning, down first, then back up in the afternoon. A lot of stocks we follow are still doing well.
Exact Sciences Corporation (EXAS), after a two-day pullback, and an inside day on Wednesday, it popped 75 cents to 20.89, or 3.7%, on 2 million shares. That was low volume for this stock, so it may have to back and fill. Ultimately, after reaching my swing trade target three ago, the target is 25. There are 3.36 days to cover.
Exelixis, Inc. (EXEL) had a good day on Thursday, up 35 cents to 10.97, or 3.3%, on 5.1 million shares. It had a big pop two weeks ago, and then a nice wedge, or coil, started to pick up in volume. It needs to take out the high at 11.66, obviously, and then look at 12 as the next target. Secondary target is at 16. It has 8.1 days to cover.
Puma Biotechnology, Inc. (PBYI), a swing trade of ours is doing great. I love the inverse head-and-shoulders after the declining topsline, long-term down channel, breakaway gap, run up to resistance, pullback flag, and now it’s moving again, up 1.65 to 50.76, or 3.36%, on 541,160 shares traded on Thursday, with a high of 52.41. With almost 8 days to cover, I’m looking for this to make it to 55, and eventually 65.
Shopify Inc. (SHOP) is doing great, up another 1.51 to 40.25, or 3.9%, on 2.2 million shares on Thursday, and reaching a high of 40.65. After pulling back from resistance it snapped right back. Watch the 41 level. If it gets through there we’re going to see mid 40’s. It has 1.76 days to cover.
Stocks on the long side included Advanced Micro Devices, Inc. (AMD), Aegean Marine Petroleum Network Inc. (ANW), Arrowhead Research Corp. (ARWR), Clean Energy Fuels Corp. (CLNE), Comstock Resources Inc. (CRK), Encana Corporation (ECA), Direxion Daily Energy Bull 3X ETF (ERX), Exact Sciences Corporation (EXAS), Exelixis, Inc. (EXEL), Healthways, Inc. (HWAY), Marathon Oil Corporation (MRO), NetApp, Inc. (NTAP), InVivo Therapeutics Holdings Corp. (NVIV), Puma Biotechnology, Inc. (PBYI), Rapid7, Inc. (RPD), Shopify Inc. (SHOP), and Weibo Corporation (WB).
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.