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Exelixis, Inc. (EXEL) is one of our best stocks of the year. It broke out in May, had a run-up, a breakdown day, falling wedge, pop, breakaway day, another falling wedge, and then on Tuesday, it broke out of the wedge, up 1.33, or 7.6%, to 18.91, on 9 million shares traded. It’s 4 waves up, and the fifth wave could take this stock up into 29-30. But, for now, it’s broken out, and the short-term target is 20 as early as Wednesday, and then let’s see if it can get to midchannel at 22.
LeMaitre Vascular, Inc. (LMAT) is in the Top 26, and is looking awesome, up 1.32, or 5.2%, to 26.59, on 214,943 shares traded on Tuesday. The volume wasn't big, but it's the biggest volume in about three weeks. I think this stock is headed to the low 30’s.
MINDBODY, Inc. (MB) reached the top of my channel on Tuesday, up 75 cents, or 3%, to 26.40, on 363,656 shares traded on Tuesday. I like the look of this stock. I gave it to you originally on Nov 15 at 20.80, it pulled back, consolidated, broke out, flagged, and now it’s running. At that point, my targets were 24 and 27.
Shopify Inc. (SHOP) is acting great. We put a swing on it and it ran up, pulled back for a couple days, got very quiet, on Monday, it had a quiet inside day, and on Tuesday, it started moving, jumping 69 cents, or 1.46%, to 47.87, on 1.6 million shares traded, reaching up to 49.13. Let’s see if it extends. Targets are 55, and 63.
Stocks on the long side included Achaogen, Inc. (AKAO), Array BioPharma Inc. (ARRY), Baozun Inc. (BZUN), Carnival Corporation (CCL), Cliffs Natural Resources Inc. (CLF), EMCORE Corporation (EMKR), EnteroMedics Inc. (ETRM), Exelixis, Inc. (EXEL), The GEO Group, Inc. (GEO), GenMark Diagnostics, Inc. (GNMK), Health Insurance Innovations, Inc. (HIIQ), HealthEquity, Inc. (HQY), Direxion Daily S&P Biotech Bull 3X ETF (LABU), LeMaitre Vascular, Inc. (LMAT), MINDBODY, Inc. (MB), Mimecast Limited (MIME), Mechel PAO (MTL), Shopify Inc. (SHOP), Sarepta Therapeutics, Inc. (SRPT), Tower Semiconductor Ltd. (TSEM), VelocityShares 3x Long Natural Gas ETN (UGAZ), and Zynerba Pharmaceuticals, Inc. (ZYNE).
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.