The stock market had a rather negative, critical day on Monday. Some important support was broken, and in spite of the late snapback I’m not convinced that it’s done yet. You’re going to see some real destruction on Boxer Shorts, but let’s start with longs here.
Cempra, Inc. (NASDAQ:CEMP) had a very big day on Monday. It jumped 1.64, or 11.4%, and more importantly, 1.6 million shares traded as it broke through resistance. Let’s take a look at lateral resistance from the beginning of 14, perhaps. January 24 of this year, this stock traded at 15.39. On Monday, it blew through that getting up to 16.21, and closed at 16.06. If that’s the real channel bottom, then you may very well see an extension of this get somewhere up to 18 short-term, maybe as high as 20, if it gets some extension follow-through, and the volume keeps up.
Idera Pharmaceuticals, Inc. (NASDAQ:IDRA) had a nice reversal on Monday, opening at 3.80, it got up to 4.44, and closed at 4.41, up 37 cents, or 9.2%. The volume was a strong 4.7 million shares. It took out the double-top in the last two sessions, and that was a very strong close, which could lead to much higher levels. Targets going forward are 5 1/2 short-term and 6 1/2 intermediate-term.
Stocks on the Short Side….
Hi-Crush Partners LP (NYSE:HCLP), which we keep talking about, certainly got crushed 3.67, or another 10.3% on Monday. That little snapback away from resistance failed, and it rolled over. 29 1/2-30 could be an interesting buying opportunity.
Qihoo 360 Technology Co. Ltd. (NYSE:QIHU) has been down seven days in a row. It traded recently at 76.90, it's down 58.90, breaking the October lows. Based on the pattern now, and its massive head-and-shoulders at the bear flag, you could see it extend a move down the mid-40’s.
Other stocks on Harry’s Charts of the Day are ACADIA Pharmaceuticals Inc. (ACAD), Achillion Pharmaceuticals, Inc. (ACHN), Bristol-Myers Squibb Company (BMY), Celgene Corporation (CELG), Cellceutix Corporation (CTIX), Direxion Daily Energy Bear 3X ETF (ERY), ProShares UltraShort DJ-UBS Crude Oil (SCO), Exact Sciences Corporation (EXAS), Geron Corporation (GERN), Isis Pharmaceuticals, Inc. (ISIS), Tetraphase Pharmaceuticals, Inc. (TTPH), and Acceleron Pharma, Inc. (XLRN).
Stocks on the short side include Chicago Bridge & Iron Company (CBI), Core Laboratories NV (CLB), CARBO Ceramics Inc. (CRR), Ctrip.com International Ltd. (CTRP), Emerge Energy Services LP (EMES), Hornbeck Offshore Services, Inc. (HOS), Helmerich & Payne, Inc. (HP), Waddell & Reed Financial, Inc. (WDR), and Westlake Chemical Corp. (WLK).