Harry's Charts of the Day videos are available to members on Monday-Thursday evenings, with one video per week available to non-members. Members please login and see Charts of the Day in the "Videos" menu dropdown.
Exelixis, Inc. (EXEL) did fantastic on Tuesday, moving up again another 54 cents, or 2.7%, to 20.57, on 6.7 million shares traded. If it pops through the most recent top line, it could accelerate. Mid-channel line is at about 22 3/4. If it gets through that, it could see the high 20’s.
Finisar Corp. (FNSR) broke back out on Tuesday, up 76 cents, or 2.5%, to 30.89, on 2.7 million shares traded, although it didn’t hold the close. I’m going to leave this as a swing trade on volume. I need to see it continue a little bit above the 50. It closed at 30.89, and I need a follow-through to get this one up towards 33 1/4. Beyond that, I would be looking at something around 35 1/2.
KEMET Corporation (KEM) popped two days ago, had an inside day on Monday, and on Tuesday it had another solid day, up 17 cents, or 2.23%, to 7.81, on 652,880 shares traded. It looks like it’s about to take out the 7.90 area, and run up towards 9.00-9 3/4.
Magellan Petroleum Corporation (MPET) continues to swing after the big reversal. It did not see any downside momentum, and is moving back up again. It was up 80 cents, or 6%, to 13.82, 469,846 shares traded on Tuesday. If it can get above 14.30 as early as Wednesday morning, targets are 16 1/2, even 20. It has a powerful pattern.
Stocks on the long side included Achaogen, Inc. (AKAO), Century Aluminum Co. (CENX), Cemtrex Inc. (CETX), Esperion Therapeutics, Inc. (ESPR), Exelixis, Inc. (EXEL), Second Sight Medical Products, Inc. (EYES), Finisar Corp. (FNSR), Health Insurance Innovations, Inc. (HIIQ), KEMET Corporation (KEM), Magellan Petroleum Corporation (MPET), Netflix, Inc. (NFLX), and Weibo Corporation (WB).
On the short side, stocks included Carter's, Inc. (CRI), G-III Apparel Group, Ltd. (GIII), L Brands, Inc. (LB), PVH Corp. (PVH), Restoration Hardware Holdings, Inc. (RH), Signet Jewelers Limited (SIG), Under Armour, Inc. (UAA), and Urban Outfitters, Inc. (URBN).
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.