It was a consolidation day on Wall Street. The pullback wasn’t bad, an orderly, 5-wave, constructive pullback that wasn’t too deep, and the underlying technicals weren’t bad. There were actually more advances than declines on New York. I find that to be positively divergent, so I wouldn’t give up on this rally yet. I think we have more to go. There are some pretty good looking charts, several of which we’re trading and/or swinging. Let’s take a look at them.
Abercrombie & Fitch Company (N:ANF), one of our swing trades, earlier this year pulled back in a 3-wave corrective move right to the breakout point. The move in the last. week is almost vertical from 23 1/2 to 26.81. OBV is making steady progress. It has four waves up. The fifth wave should take it to the 33-34 zone.
The Direxion Daily Gold Miners Bull 3X Shares (N:NUGT) had another spectacular move on Thursday, up 8.41 to 54.72, or 18%, on 12.5 million shares. There’s resistance at the next target at 69-70, and then 85-87. Look for it to get to the low to mid 60’s on Friday.
ORBCOMM Inc (O:ORBC), a swing trade of ours, has been acting great. On Thursday, it was up 39 cents to 8.25, or 5%, on 1.2 million shares. It has now moved in a 5-wave move and may extend the fifth wave, potentially, up around 9.00 short-term, which is the next swing-trade target. The secondary target is at 12.00. OBV is surging, the volume is excellent, and we’re looking at the possibility of this stock exploding.
Other stocks on the long side included Abercrombie & Fitch Co. (ANF), Cray Inc (O:CRAY), Direxion Daily Junior Gold Miners Bull 3X Shares (N:JNUG), Direxion Daily Gold Miners Bull 3X ETF (NUGT), Juno Therapeutic (O:JUNO), Kinder Morgan, Inc. (N:KMI), Mitek Systems Inc (O:MITK), Universal Display (O:OLED), ORBCOMM, Inc. (ORBC), Regulus Therapeutics Inc (O:RGLS), Silver Wheaton Corp (N:SLW), ORBCOMM, Inc., Vuela Compania de Aviacion SAB de CV (N:VLRS), and Wynn Resorts Limited (O:WYNN).