Applied Opt (NASDAQ:AAOI) has been one of our Top 25 stocks and has been for months now. It went from 8.00 to 56.00, 7 times their money, since last May. In just the last 60 days, it has gone from 21.88 to Tuesday’s high at 56.14, nearly tripling. It was up 3.08, or 6%, to 54.54, on 1.9 million shares traded. As far as I am concerned, this stock is overbought. It looks to me like the momentum can’t carry it to 60-65, so you have to be very careful up in that area. It could very well pull back, consolidate, and make a move to the 70-80’s, but, for now, you have to be careful. There are 3.9 days to cover .
Aerie Pharmace (NASDAQ:AERI) is doing very well, continuing in a nice orderly run-up. On Tuesday, it ran up another 1.25, or 2.57%, to 49.95, on 834,980 shares traded. With 13.2 days to cover , and making new all-time highs, I think it’s going to continue to move up the channel, and may even start to accelerate. If it does that, we’re looking at a 60-70-dollar stock, and the short position could fuel the fire on that one.
Stocks on the Short Side….
Dick’s Sporting Goods Inc (NYSE:DKS) had a really bad report on Tuesday and got whacked down 4.53, or 8.6%, to 48.08, on over 25 million shares traded, making new multi-month lows. It looks like the trendline and support have been broken, and it is headed toward 43 1/2-44.
Papa John's International Inc (NASDAQ:PZZA) was down another 1.12, or 1.44%, to 76.44, on 436,535 shares traded on Tuesday, and is headed lower. It looks like the flag has been taken out and it’s headed down toward 74-74 1/2. If it gets through that, it looks like it’s going to fall all the way down to the mid-to-low 60’s.
On the long side, stocks included Applied Optoelectronics, Inc. (AAOI), Aurinia Pharmaceuticals Inc (NASDAQ:AUPH), TG Therapeutics, Inc. (TGTX), Momo Inc (NASDAQ:MOMO), MeetMe, Inc. (MEET), Aerie Pharmaceuticals, Inc. (AERI), Foundation Medicine, Inc. (FMI), Innoviva, Inc. (INVA), Vocera Communications, Inc. (VCRA), and Yirendai Ltd. (NYSE:YRD).
On the short side, stocks included AutoZone, Inc. (NYSE:AZO), Cardtronics Inc (NASDAQ:CATM), Dick's Sporting Goods, Inc. (DKS), Express Scripts Holding Company (NASDAQ:ESRX), G-III Apparel Group, Ltd. (GIII), Hibbett Sports, Inc. (HIBB), iRobot Corporation (IRBT), Papa John's International, Inc. (PZZA), Ralph Lauren Corporation (NYSE:RL), Sally Beauty Holdings, Inc. (SBH), Signet Jewelers Limited (SIG), Tempur Sealy International, Inc. (TPX), Texas Roadhouse, Inc. (TXRH), Under Armour, Inc. (UAA), and United Parcel Service, Inc. (NYSE:UPS).