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It was another sloppy day on Wall Street and an ugly way to start the week.
Exact Sciences Corporation (EXAS) had a big day on Monday. I really like the way it consolidated. It’s been holding the line of support at 17.51 for a couple months. It popped 1.40, or 7.6%, to 19.73, on 3 million shares traded, and has been acting well, but watch resistance at about the 19.90 area. Look for it to get to 22 1/2-3/4 at the double top. It has 10 days to cover.
NOVAN, INC. (NOVN) had a very good day on Monday, up 1.56, or 8%, to 20.53, on 146,233 shares traded. The falling wedge has been broken, it formed a mini-base over the last two weeks, popped to resistance, and pulled back. Keep an eye on this one, because if it gets through 21, it will get to 22 pretty quickly.
Stocks on the Short Side….
Advance Auto Parts Inc. (AAP) broke a wedge and got smacked on Monday, down 3.37 cents, or 2.3%, to 143.27, on 800,000 shares traded. You can see that there was a possibility it had some support, but I’m actually looking lower at the 134-36 zone initially. If you look back a little further, you can see that the declining bottom line is all the way down at 105-110. Keep an eye on that one.
G-III Apparel Group, Ltd. (GIII) is looking pretty ugly, down 93 cents, or 3.22%, to 27.97, on 445,685 shares traded. This stock continues to show wedge after wedge, flag after flag, and now it’s showing a falling flag. It looks like it’s about to collapse down to 22, my next target.
Stocks on the long side included General Cannabis Corp. (CANN), Cannabis Sativa, Inc. (CBDS), Canopy Growth Corporation (CGC.TO), CannaGrow Holdings, Inc (CGRW), ContraVir Pharmaceuticals, Inc. (CTRV), Egalet Corporation (EGLT), Exact Sciences Corporation (EXAS), Hudson Technologies Inc. (HDSN), Mentor Graphics Corp. (MENT), NOVAN, INC. (NOVN), Nova Lifestyle, Inc. (NVFY), and Resolute Energy Corporation (REN).
On the short side, stocks included Advance Auto Parts Inc. (AAP), Cal-Maine Foods, Inc. (CALM), Chipotle Mexican Grill, Inc. (CMG), Flowers Foods, Inc. (FLO), G-III Apparel Group, Ltd. (GIII), Leggett & Platt, Incorporated (LEG), LifePoint Health, Inc. (LPNT), Life Storage, Inc. (LSI), Luxoft Holding, Inc. (LXFT), The Michaels Companies, Inc. (MIK), Natural Health Trends Corp. (NHTC), Royal Caribbean Cruises Ltd. (RCL), Restoration Hardware Holdings, Inc. (RH), Signet Jewelers Limited (SIG), Gentherm Incorporated (THRM), Texas Roadhouse, Inc. (TXRH), and WebMD Health Corp. (WBMD).
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.