Stocks were up marginally most of the day but then sold off into the close. One of the bright spots, though, is the biotech sector as shown by the ETF LABU. After making a double bottom back in February and March and then a higher low in May, the sector has been trending up nicely. It has really built a nice base and I think Biotechs are heading higher. That is very good for us traders.
AMD: The chart is looking quite strong for this stock. But I have a reluctance to trade it as the float is 650 million. But it had gapped up, formed a nice wedge and then broke out of the wedge to the upside closing at $4.04. If the stock broke above $4.20 I would look to go long for a $.40 move to $4.60. Not my favorite set up, but it could have a nice 10% move in it tomorrow if markets are stronger. Over 4 days to cover.
AQMS: I wrote about this stock last Thursday night and traded it for nice profits on Friday. It had great follow through today, just sorry I was away for the Queen's birthday (Victoria day long weekend in Canada, eh). But it did hit my target that I called on Thursday at $12.29 (I was calling for $12.00). But now it is trading at the top of its channel. I am looking for this to consolidate of the next 2 weeks. Then a move into the $15.00 range. I will be keeping a close eye on this stock.
ARIA: Another winner off my earlier watch lists but it is a large float stock. It is now running into areas of resistance closing at $8.08. I will look to go long above $8.25 with first resistance at $8.70. If it can break through that level then $10.00 is my target. Over 8 days for shorts to cover so could add to the momentum.
CLRB: A trade I nailed last week (4 times) and I would have traded today for sure as it has good follow through and the chart is one of my perfect set ups to trade. It hit a high today of $4.93 on over 30 million shares (float 3 million shares). I would like to see a few days of consolidation with the stock holding the $2.80 support level. I will look to go long above today's high (probably the round number of $5.00. If it does, my target is $7.00. Shorts should be nervous on this one.
CPXX: Another big winner off my watch list from last week. I was calling to go long over $17.25 and the stock traded up as high as $18.18 today closing at $17.82. My target for this stock is still $25.00.
NTRA: Stock broke out of a wedge formation to the upside today closing right at resistance of $12.12. On a break above $12.22 I will look to go long and with shorts, 22 days to cover, this could really rocket. First target, $14 and then $16.50. High on my watch list for the morning.
VUZI: Not so enamoured with the long term chart but it did break above the descending trend line to close $5.48. A break above $5.70 and my next target is $6.25/$6.50 quite quickly. Nearly 13 days for shorts to cover.
Cheers!
great comments...thanks.
What do you mean by the shorts have "x" number of days to cover? I know many technical terms but this I still gotta figure out If you could help.
shorts days to cover is an indicator on how large the short position is. You take the total outstanding and divide by the short interest and that gives you a number that, if only the people short bought the stock, with the average volume, that is how many days it would take for them to cover the complete short position. The larger the number, the greater the relative short position is and if a stock spikes up, it will add more momentum to the movement as shorts scramble to cover.
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