It was a very nasty day on Wall Street on Thursday. A lot of stocks did very poorly. There was a very big divergence between advances and declines. The pickup was a minus 14, and the Mcclellan Oscillator got to minus 183, yet the market couldn’t bounce. We’ll have to see what the market does on Friday. We’re going to take a look at some longs, but they will be gold, oil, and some ETF’s, along with shorts.
Barrick Gold Corporation (N:ABX) was up 1.37 to 8.75, or 19%, on 32 million shares. The long-term chart shows that it traded for a while in the mid 50’s from 2008 to 2012, and then rolled over and dropped down into the single digits. After multiple waves down it formed a big wedge or coiling-type base, and then popped on high volume on Thursday, and went straight up. This was a significant breakout. It may very well be short-term, but the targets are 10 1/4-1/2, followed by 12 1/2, and then 14.
The ProShares UltraShort Bloomberg Crude Oil (N:SCO) has moved up nicely the last four sessions, 40 points in three days, and on Thursday it was up 7.15 to 161.65, or 5%, on 671,600 shares traded. The target is up at 170.70, but be careful going forward because at the October lows when it was in the 70’s, and then it ran all the way up to 163, more than doubling in the last 90 days.
United States Natural Gas Fund, LP (N:UNG), with natural gas being back up again, this stock went from the mid-teens all the way down to under 7.00, but in the last couple weeks, it’s had a run up, pulled back and flagged for four days, and on Thursday it was up again, 40 cents to 8.87, or nearly 5%, on 16 million shares. With 3.2 days to cover, and holding above the 50, if it gets to the 9.11 range it could easily reach 10.00. So, keep your eyes on this one.
Stocks on the long side included Abercrombie & Fitch Co. (N:ANF), Dynavax Technologies Corporation (O:DVAX), Direxion Daily S&P Biotech Bear 3X ETF (N:LABD), Direxion Daily Gold Miners Bull 3X ETF (N:NUGT), ProShares UltraShort Bloomberg Crude Oil (SCO), VelocityShares Daily 2x VIX ST ETN (O:TVIX), and ProShares Ultra VIX Short-Term Futures (N:UVXY).
Stocks on the short side included AmSurg Corp. (O:AMSG), ANI Pharmaceuticals, Inc. (O:ANIP), Apollo Education Group, Inc. (O:APOL), BioMarin Pharmaceutical Inc. (O:BMRN), Criteo SA (O:CRTO), Comfort Systems USA Inc. (N:FIX), Global Payments Inc. (N:GPN), Middleby Corp. (O:MIDD), Papa John's International Inc. (O:PZZA), Qualys, Inc. (O:QLYS), Restoration Hardware Holdings, Inc. (N:RH), and Red Robin Gourmet Burgers Inc. (O:RRGB).