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It was kind of a mixed, sloppy day on Tuesday. We still had a lot of stocks that did well, but the shorts are also doing well. So, let’s take a look at some longs and shorts here.
Match Group, Inc. (MTCH) is doing very well. It has been having a nice run of it lately. New all-time highs are just above the initial IPO thrust into 16-17. On Tuesday it was up 50 cents to 16.93, or 3%, on 1.3 million shares on Tuesday. The 16.93 close is 6 points off the new all-time high. It has a target of 19 1/2.
Stocks on the Short Side......
Royal Caribbean Cruises Ltd. (RCL) is backing off after yesterday’s reversal bar and was down a little bit more today, 29 cents to 70.10, on 1.3 million shares. I’m looking for this to fail miserably and take out 64, which is my next target, and then the mid to low 50’s.
Red Robin Gourmet Burgers Inc. (RRGB) has been in this down trend since early 2015. On Tuesday, it was down another 35 cents to 48.98, on 117,000 shares traded. I’ve given you several shorts on this stock. Anything below 47 is going to test 40, and may go lower.
Stamps.com Inc. (STMP) continues to give. On Tuesday it dropped down 3.38 to 68.82, and closed at 71.34, or 4.5%, on 2.86 million shares. Looking at support, I’m not surprised it bounced. Look for it to go to the high 50’s.
Stocks on the long side included Acacia Communications, Inc. (ACIA), Cemtrex Inc. (CETX), Cypress Semiconductor Corporation (CY), Match Group, Inc. (MTCH), Ocean Power Technologies, Inc. (OPTT), Shopify Inc. (SHOP), Silicon Motion Technology Corp. (SIMO), scla, Sophiris Bio, Inc. (SPHS), Teladoc, Inc. (TDOC), Weibo Corporation (WB), and Yirendai Ltd. (YRD).
On the short side, stocks included athenahealth, Inc. (ATHN), Cal-Maine Foods, Inc. (CALM), Cray Inc. (CRAY), Enanta Pharmaceuticals, Inc. (ENTA), Foot Locker, Inc. (FL), Luxoft Holding, Inc. (LXFT), Royal Caribbean Cruises Ltd. (RCL), Red Robin Gourmet Burgers Inc. (RRGB), Stamps.com Inc. (STMP), and Virtusa Corporation (VRTU).
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.