It was a lousy day on Wall Street on Monday, but proved positive that you can trade on the wrong side if you have the right stock as we did today. These two are the first two highlighted here.
Avanir Pharmaceuticals, Inc. (NASDAQ:AVNR) soared 85.3%, up 5.75 to 12.49, on 88.7 million shares after reporting positive clinical trial results for an Alzheimer-related drug. It opened at 9.35, ran all the way up to 13.09, before pulling back to close at 12.49. That’s the best volume this stock has ever seen. Looking at the long-term pattern, the highest this stock has ever reached is 17.33, which is a potential short-term target. It will get there possibly in the next day or two.
ReWalk Robotics Ltd. (RWLK) continues to surge on the second day of its IPO. On Monday, it pulled back, then exploded 11.55, or 45%, on 11.2 million shares. Since the IPO, it popped, coiled, popped, dipped, popped again, formed a little wedge, and then accelerated. After reaching all the way up to 43.71, it backed off to the mid-to-high 30s. The pattern that formed looks like some sort of coiling consolidation. If it moves under the 35 1/2 area it would be a disaster. Just so it doesn’t move under 32. If it moves to mid channel, the target is 45. The top of the channel is mid-60. Do I think it could get that high? No, but it doesn’t mean it can’t.
Stocks on the Short Side…
CalAmp Corp. (NASDAQ:CAMP) hasn’t been looking too bad. The top is in, it declined, formed a rising wedge, another quick fall, a bear flag, and then on Monday, it dropped 1.41, or 7%, on 1.2 million shares. The volume picked up a little bit, and that was the best in about 7 or 8 weeks. Look for a retest of the 16 3/4 range, if that breaks, then 14 1/2, and it could get all the way down to 11-12 if it falls apart.
Terex Corp. (NYSE:TEX) formed a top in Feb-Mar, rolled over, formed another topping pattern, broke down, snapped back to resistance, and then on Monday it had a big rollover, down 2.23, or 6.4%, and the volume spiked to 6.1 million shares. It looks like it wants to go lower, eventually down to 27.
Other on Harry’s Charts of the Day are Cliffs Natural Resources Inc. (NYSE:CLF), Catalent, Inc. (NYSE:CTLT), and Vimicro International Corp. (NASDAQ:VIMC).
Stocks on the short side include Arctic Cat Inc. (NASDAQ:ACAT), Core Laboratories NV (NYSE:CLB), eith, ITT Educational Services Inc. (NYSE:ESI), Grifols, S.A. (NASDAQ:GRFS), Interactive Intelligence Group Inc. (NASDAQ:ININ), Kindred Healthcare Inc. (NYSE:KND), Michael Kors Holdings Limited (NYSE:KORS), Nu Skin Enterprises Inc. (NYSE:NUS), Qihoo 360 Technology Co. Ltd. (NYSE:QIHU), Tupperware Brands Corporation (NYSE:TUP), and Waddell & Reed Financial, Inc. (NYSE:WDR).