It was a really interesting day on Wall Street on Monday, a little choppy, a little sloppy, and a little worrisome. When markets go up and technicals are not cooperating, it is not good. Negative divergences or lack of cooperation are the first things that show a market is getting long in the tooth, tired, or ready to rollover. Be careful the next day or two especially. There are still some stocks that are acting strong. Lets take a look at some of them.
Aceto Corp. (O:ACET), which we’ve mentioned a couple times, particularly on the breakaway gap, the run-up, it formed a wedge, and on Monday, it broke out of the wedge, up 1.58 to 29.61, or 5.6%, on 272,100. The volume wasn't huge. It’s not a heavily traded stock. It does have 3.2 days to cover. The breakout could get a retest up near the 31.90 area, maybe even 32.00 short-term.
Central Garden & Pet Company (O:CENT) has really been strong the last couple of months, and on Monday, it was up 96 cents to 17.27, or 5.9%, on 242,600 shares traded. It has gone from 8 1/2 to 17 1/2. Doubling, yet the longer-term chart shows a major breakout at the 2006 high up around 18.50-.60. That could be the target short-term, and then it could take it further.
JetBlue Airways Corporation (O:JBLU) is one of several airlines that did great on Monday, up 76 cents to 26.86, or 2.9%, on 6.1 million shares. It broke out of a consolidation pattern, and may very well be on its way to 30-31.
Natural Health Trends Corp. (O:NHTC) has been going very strong since late August. On Monday, it was up 4.31 to 35.64, or 12%, on 470,000 shares traded. It’s going to come up against the double-top that comes in around 44 3/4. I love the declining topsline break, and the pullback to test the 50. From that level it has gone to 28 1/4, and then to 401/2 in just a week and a half. That’s the near-term target, but ultimately, this stock could get up into the high 50’s.
Other stocks on the long side include Aquinox Pharmaceuticals Inc. (O:AQXP), Anavex Life Sciences Corp. (OTC:AVXLD), Can-Fite BioPharma Ltd. (N:CANF), Eros International (N:EROS), Entravision Communications Corporation (N:EVC), SkyWest Inc. (O:SKYW), Juno Therapeutics Inc. (O:JUNO), NovoCure Limited (O:NVCR), and Pure Storage, Inc. (PSTG).