It was a very bad day for Wall Street on Monday, and a difficult way to start the new year. It was the worst start for the market in 84 years, down more than 465 points at one point in the day, but it did come back. It was a beautiful rally in the last 35-40 minutes, or so, which was definitely nice to see, but it doesn’t mean much, since it was a technical bounce. We’ll see if there is any follow-through on Tuesday. There are some longs and some shorts to take a look at here.
Abercrombie & Fitch Co. (N:ANF) is looking good. It’s a retail stock that has come way down. Over the course of several years, this stock was trading in the 80s, and has been on the Boxer Short list for some time now. As recent as the last couple years it’s been trading in the 50s, and then it dropped down, and consolidated before dropping to a spike low in August, 2015, to 10 1/2, then the spike up, a pullback, and breakout. It looks like a complete inverse-type formation with a breakaway gap above the moving averages. At this point, it ran up, formed a consolidation platform, a little pop before the pullback, and then a nice reversal on Monday, up 36 cents to 27.36, or 1.3%, on 3 million shares. That’s the biggest volume in the last seven or eight trading sessions. If there is a follow-through, look for it to run up to 29 1/2, and eventually to the swing-trade target at 34. It has 4.48 days to cover.
Constellium N.V (N:CSTM) had nice action on Monday. It has a swing trade on it, 4 or 5 day pullback on low volume, and then the volume picked up on Monday, the best volume in six sessions. This stock popped 47 cents to 7.59, or 6%, on nearly a million shares. The structure of this stock can support a big move into the high teens, low 20s at some point, but first it must test the Aug high up around the 11.90 range, which is the swing-trade target, followed by 15-16.
Rovi Corporation (O:ROVI) has been acting great. It formed a long base, a breakaway gap, then ran up and formed a beautiful, little falling wedge. It was up 43 cents to 17.09, or 2.6%, on 2.4 million shares on Monday. It looks like it has the energy to move up towards 20 short-term, 23 intermediate-term, and then as high as 27. It looks pretty interesting with 7.35 days to cover.
Other stocks on the long side included Actinium Pharmaceuticals, Inc. (N:ATNM), Lululemon Athletica Inc. (O:LULU), SunEdison, Inc. (N:SUNE), Smith & Wesson Holding Corporation (O:SWHC), Guggenheim Solar ETF (N:TAN), and Vuzix Corporation (O:VUZI).
Stocks on the short side include ANI Pharmaceuticals, Inc. (O:ANIP), Capella Education Co. (O:CPLA), CVS Health Corporation (N:CVS), Comfort Systems USA Inc. (N:FIX), Global Payments Inc. (N:GPN), Papa John's International Inc. (O:PZZA), Restoration Hardware Holdings, Inc. (N:RH), and Red Robin Gourmet Burgers Inc. (O:RRGB).