Now wasn’t that a pretty day on Tuesday? The markets gapped down and stayed down all day in declining channels, and closed near the lows for the day, down substantially. The technicals weren’t good either. We’re going to go over some longs and some shorts. There were some stocks that stood out on Tuesday.
Fabrinet (N:FN) took off on Tuesday, exploding 2.93 to 28.02, or 12%, on 2.9 million shares. I almost put a swing on this stock. It broke out on Friday to 24 3/4, and reached up to 29 1/2 on Tuesday with a breakaway gap and beautiful top. It didn’t close at the high for the day, but that was the biggest volume this stock has ever had. This kind of move often leads to high levels. Look for a target around 33 1/2. It has 2.66 days to cover.
Michael Kors Holdings Limited (N:KORS) had another good day today, up 2.93 to 28.02, or 12%, on 2.3 million shares. This stock was on the Boxer Short List for a long time, going from the 100s down to the mid 30s. As of late, it has been acting like it formed at the base, and then it broke down. It snapped back and had a nice breakaway gap. That breakaway gap, and that kind of surge, should lead to higher levels. The near-term target is 53, and see if it gets an extension in the next day or two.
Mattel, Inc. (O:MAT), one of our swing trades, had a wonderful day on Tuesday on earnings and exploded 3.70 to 28.36, or 13.8%, on 28.6 million shares. It did get to my swing-pick trade. The next target is at 30. With the surge and that kind of volume, this stock could get to 31-2. If it does it could be ready for a pullback. If it thrust further it could get up to the mid 30s. It has 10.64 days to cover.
Other stocks on the long side included Fabrinet (FN), Michael Kors Holdings Limited (KORS), Direxion Daily S&P Biotech Bear 3X ETF (N:LABD), Mattel, Inc. (MAT), Oclaro, Inc. (O:OCLR), ProShares UltraShort Bloomberg Crude Oil (N: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), Capella Education Co. (O:CPLA), Fossil Group, Inc. (O:FOSL), Global Payments Inc. (N:GPN), Papa John's International Inc. (O:PZZA), LendingTree, Inc. (O:TREE), Verint Systems Inc. (O:VRNT), and Williams-Sonoma Inc. (N:WSM).