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The markets had an interesting day on Tuesday. They were up in the morning, came down sharply, tested, ran up, made new highs, and then consolidated, coiled, and broke out at the end of the day. It was a very nice close for the markets, and a great start to the week.
Exelixis, Inc. (EXEL) had a very good day on Tuesday. It broke out of an ascending coil, and ran up 54 cents, or 4.7%, to 12.08, on 6.4 million shares traded. It looks like it’s ready to run up to 14 1/2-15 short-term, and the secondary target is 18. It has 5.9 days to cover.
LeMaitre Vascular, Inc. (LMAT), one of our swing trades, did well on Tuesday, up 2.45, or 13%, to 20.80, on 710,757 shares traded. It doesn’t sound like a lot of volume, but it’s the best volume since June 2015, and a 52-week volume high. Last week it broke out of a flag, pulled back, and on Tuesday it exploded. My target was right about 21, and it ran up to 21.12. The secondary target is at the top of the channel at 23. It may get there quickly, with 4 days to cover.
Nektar Therapeutics (NKTR) had a nice move on Tuesday, up 48 cents, or 2.6%, to 18.93, on 1.2 million shares traded. It popped above resistance from the spike high, and has now been up five days in a row. It appears to be moving up very slowly and steady. I think it’s going to make it to 21 short-term, and then 23 intermediate-term.
U.S. Silica Holdings, Inc. (SLCA), one of our swing trades, continues to look good. It was up again on Tuesday, having popped 1.16, or 2.8%, to 42.10, on 1.6 million shares traded. Right now it’s testing the August 19 high when it hit 42.38. Tuesday’s high was 42.15. If it gets through support at 42.70-72. I’m looking at 46 3/4-47, and then 51-52 as targets. This stock has a really nice pattern.
Stocks on the long side included Acacia Communications, Inc. (ACIA), Approach Resources, Inc. (AREX), Accelerate Diagnostics, Inc. (AXDX), CoLucid Pharmaceuticals, Inc. (CLCD), Clayton Williams Energy, Inc. (CWEI), cybr, Energy Recovery, Inc. (ERII), Exelixis, Inc. (EXEL), LeMaitre Vascular, Inc. (LMAT), MabVax Therapeutics Holdings, Inc. (MBVX), Nektar Therapeutics (NKTR), Novavax, Inc. (NVAX), Progenics Pharmaceuticals, Inc. (PGNX), Resolute Energy Corporation (REN), U.S. Silica Holdings, Inc. (SLCA), Targa Resources Corp. (TRGP), Twilion, Inc. (TWLO), Weibo Corporation (WB), Xinyuan Real Estate Co., Ltd. (XIN).
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.