Although the stock market ended down on the day, we are going to look at both longs and shorts here.
First Solar, Inc. (FSLR) has been acting well. A wedge was broken, it backed and filled for a month, kept coming on, and finally it broke through, flagged for three days, and popped on Tuesday, up 2.11 to 29.61, or 7.67%, on 10 million shares, closing just 12 cents off the high. The swing trade target on this one is around 30, and it's almost there. The top of the channel says this could be headed to the mid-to-high 30’s.
Netflix Inc. (NFLX) announced a big deal with Disney on Tuesday, and the stock exploded, jumping a whopping 10.65 to 86.65, or 14%, on 14.5 million shares. The key is that it broke out. If it follows-through, it could make a quick test of the 90 area, or perhaps even a move to the 97 range in the next few days on a swing trade.
On the Short Side…
Pharmacyclics Inc. (PCYC), one of our Stocks of the Year, is finally falling apart a little bit. It rolled over, formed a bear wedge, fell way down on volume, created a small rising wedge, and on Tuesday, it reversed, going from 56 1/2 to 54.32, down 1.38. If it does begin to fall, the bottom of the channel is beaconing, but before that, it has to reach the 44 area short-term.
Ross Stores Inc. (ROST) was in an uptrend, rolled over in Aug, and has been in a down channel ever since. It came down very hard from the low 70’s to the low 50’s, and then formed a rising wedge. It rolled over again a couple days ago, and on Tuesday, it began to accelerate down nearly a point to 55.41, on 2.3 million shares. It may very well test the 52-3 area, and if that is broken, then look for something down towards the 50 zone.
Other stocks on Harry’s Charts of the Day are BioScript Inc. (BIOS), 8X8 (EGHT), and Green Mountain Coffee Roasters Inc. (GMCR), Inphi Corporation (IPHI), Mindspeed Technologies Inc. (MSPD).
Stocks on the short side include Atlas Air Worldwide Holdings Inc. (AAWW), Buffalo Wild Wings Inc. (BWLD), Diebold, Incorporated (DBD), Hibbett Sports, Inc. (HIBB), Mellanox Technologies, Ltd. (MLNX), VeriFone Systems, Inc (PAY), and The Fresh Market (TFM).