Markets ended the day quite nicely, led by the biotechs as I have been writing about. LABU continues to trend in an upward channel. It is trading at the highest level since January boding well for the markets.
ARRY: Bit bigger float than I like to trade but worth a trade if the volume picks up. Broke above resistance level closing at $3.85. Support is around $3.65. Needs volume to move, but with Biotechs strong it should come into play. And with 12 days for shorts to cover my target is $6.25 where it will fill the gap from March.
CLDX: I went long this stock at the close today at $4.98 as it broke above long term resistance. Stock trade 250,000 right at the close at $5.00. Then the stock traded up after hours to $5.09. If it has momentum to follow through and stay above the resistance of $4.95 this stock could move up quickly to fill the gap to $6.25. Shorts, 7 days to cover so could add to the momentum.
CLRB: Low float stock that has come down from $30.00 trading as low as $1.00. Recently, it had a big spike up hitting a high of $4.93 before backing off in a wedge formation. Today it popped up $.74 to close at $3.89. It has critical resistance at the old high of $4.93. A break above that level and this stock could easily trade to the $7.00 level. Ultra low float so expect volatility.
FIVN: I wrote about this stock last night and today it did not disappoint. Stock continues to trend up in a channel formation today breaking out above resistance at $11.00 and closing at $11.23 as I had targeted last night. It is trading now in all new high territory. Next target is $12.50. Shorts, 4 days to cover.
KERX: Nice winner for me today as I caught the break out $6.20/$6.45 (going long at $6.48) and trading it out at $6.90. Stock pulled back and closed at $6.69. I will look to go long if it trades above today's high with a price target of $8.00 and then $10.00. Shorts should be getting nervous with 13 days to cover.
PETX: I reiterate my note from last night. It closed today at $7.56 but needs to trade above the double top at $7.75. $9.00 is my first target and then $11.00. Shorts, 6 days to cover.
Shorts to cover refers to the short interest. You take the number of shares short divided by the average daily volume and if only the shorts bought stock, that is how many days it would take them to cover. It is just an indicator of how much extra buying may be generated if a stock is moving higher and shorts need to cover to unwind their position
Jacko - Nothing has changed from my note in the watch list.
Hey TurboBob. Finding your posts as excellent resource. Fully appreciative. I'm brand new, reading more than I remember. We traders can locate particular stocks "short volumes" day to day? Can we get that real time? At least per this post, a main strategy on the mid-squeeze longs is watching the covers, is that right? Thanks. Like your followers, enjoying your content very much. Keep it coming. All the best.
Short interest is only reported twice per month, 15th and 30th. The short interest (days to cover) is just an indicator that if a stock gains momentum, a large short interest will contribute to the move.
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