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The stock market had a very rough opening on Monday. It did come back quite a bit, but just couldn’t make it to the plus column. It backed off a little at the end and was kind of a consolidation day. We expected a pullback day and we got one. Let’s see what happened, and what will happen going forward. We have both longs and shorts here, and below you will see that we highlighted a few of those.
Adial Pharmaceuticals, Inc. (ADIL), a swing trade of ours, popped on Monday, gaining 30 cents, or 4.3%, to 7.27, 295,521 shares traded on an inside day. Low volume, good technicals. It’s right at the apex of an ascending wedge. If this breaks out, it will certainly go to 9 1/2-10, and eventually to the high teens.
American Superconductor Corporation (AMSC) is moving up. It had an engulfing reversal day on Monday of 53 cents, or 4.5%, to 12.28, on 287,170 shares traded. You can see resistance at the top of the bar on Monday at about 12 1/2, which is what needs to be taken out in order to get to the 15-16 range.
Canopy Growth Corporation (CGC) had a big day on Monday, with the state of New York licensing, jumping 4.24, or 11%, to 42.49, on 33.6 million shares. They will be investing a lot in New York and creating jobs. But the bottom line is, it’s been up seven days in a row, taking it from the 28 level to Monday’s high at 43.56. My target for Tuesday is 46 3/4. Then I’m looking for a pullback consolidation, and if it gets one, my targets will be in the high 50’s, even the high 60’s.
eHealth, Inc. (EHTH), one of my Top 30 for the year, really looks stellar, and on Monday with the engulfing bar it was up another 1.56, or 3.83%, to 42.30, on 181,003 shares traded. Volume was light. I think it’s going to get to 50, so keep an eye on this one.
Mirati Therapeutics, Inc. (MRTX) continues its run-up for seven days in a row, 12 out of the last 13. That’s almost every day for three weeks, crossing key resistance in the 41 zone. On Monday it was up 2.85, or 4.68%, to 63.71, reaching a high at 64.46. The target at 65.35 was almost met. Keep an eye on this one, too.
New Age Beverages Corporation (NBEV), another marijuana stock, ran 83 cents, or 13%, to 7.01, on nearly 29 million shares on Monday. Solid volume. Looks like it wants to move higher. Target is up around the double-top at 9 1/2.
Stocks on the long side included Aurora Cannabis Inc. (ACB), Canopy Growth Corporation (CGC), Adial Pharmaceuticals, Inc. (ADIL), American Superconductor Corporation (AMSC), Boot Barn Holdings, Inc. (BOOT), eHealth, Inc. (EHTH), iCAD, Inc. (ICAD), Marin Software Incorporated (MRIN), Mirati Therapeutics, Inc. (MRTX) New Age Beverages Corporation (NBEV), Okta, Inc. (OKTA), SMTC Corporation (SMTX), VelocityShares 3x Long Natural Gas ETN (UGAZ), United States Natural Gas (UNG), and VIVUS, Inc. (VVUS).
On the short side, stocks included Automatic Data Processing, Inc. (ADP), Barrett Business Services, Inc. (BBSI), Carvana Co. (CVNA), GrubHub Inc. (GRUB), IntriCon Corporation (IIN), IRadimed Corporation (IRMD), Medifast, Inc. (MED), Mimecast Limited (MIME), NeoGenomics, Inc. (NEO), Polaris Industries Inc. (PII), Tailored Brands, Inc. (TLRD), and TechTarget, Inc. (TTGT).