6 Stocks To Watch: Avis, Essent, Gap, Macy's, NantKwest, Penn National Gaming

1. Avis Budget Group

Avid Budget Group (NASDAQ:CAR) broke out on Wednesday, and jumped 3.36, or 18%, to 21.97, after reaching a session high of 22.10, and then another 18 cents to 22.15 in after-hours. It came out of a base pattern with a thrust on 13.3 million shares traded. That was a good move and I think this stock is headed to 27 at this point.

2. Essent Group

Essent Group (NYSE:ESNT) broke out of a base on Tuesday, and then followed through on Wednesday with a breakaway gap, taking it up 4.64, or 14%, to 37.42, with a session high of 37.81, on nearly 6 million shares traded. I wouldn’t be shocked to see a quick move to 38 1/2-39, and then 42 1/2.

3. The Gap

The Gap (NYSE:GPS) is running out of a base pattern, with a head and shoulders, then a double right shoulder, and a breakaway gap above a triple-top, gaining 1.64, or 18.4%, to 10.57, and closing just 3 cents off the session high at 10.60, on 21 million shares traded, and then another 18 cents to 10.76 in after-hours. It’s probably going to test 11.35 near-term, and then the secondary target would be upwards of 12 3/4.

4. Macy's

Macy's (NYSE:M), another retail group, probably moved on short covering. It broke out of a coil on Tuesday, gapped, and formed a breakaway run on Wednesday, with a move up of 1.21, or 19.6%, to 7.38, reaching a session high of 7.48, on 96 million shares traded, and then another 49 cents to 7.86 in after-hours. That is big volume for this stock, just short of 99 million shares traded a couple months ago. Nevertheless, this gap may be in play and I’m looking for a run-up to test 8.35.

5. NantKwest

NantKwest (NASDAQ:NK), in the healthcare sector, exploded late in the day, after an explosion midday, it coiled, and broke out again, with a move up of 2.13, or 39%, to 7.58, having reached a session high of 8.34, on 22.2 million shares traded. This is a stock to watch because I think, it will get a follow-through. Th spike-up from Jan 16 that took us to 9.90 could very well get tested.

6. Penn National Gaming

Penn National Gaming (NASDAQ:PENN), a swing trade of ours, formed a V-bottom mid-May, formed a platform swing trade, and has gone from 10 to 33. On Wednesday, it popped 3.10, or 10 1/2%, to 32.39, with a session high of 32.65, on 25.4 million shares traded. It has had a beautiful run. Any extension here could retest the highs at 39.

Stocks on the long side

Alcoa Corporation (NYSE:AA), Allegheny Technologies Incorporated (NYSE:ATI), Avis Budget Group, Inc. (CAR), Carnival (NYSE:CUK) Corporation (CCL), Coherus BioSciences, Inc. (CHRS), DraftKings Inc. (NASDAQ:DKNG), Essent Group Ltd. (ESNT), Evofem Biosciences, Inc. (NASDAQ:EVFM), The Gap, Inc. (GPS), U.S. Global Jets ETF (JETS), Lumber Liquidators Holdings, Inc. (NYSE:LL), Macy's, Inc. (M), Remark Holdings, Inc. (MARK), Mersana Therapeutics, Inc. (NASDAQ:MRSN), Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL), Nabors Industries Ltd. (NYSE:NBR), Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH), NantKwest, Inc. (NK), Penn National Gaming, Inc. (PENN), Royal Caribbean Cruises Ltd. (NYSE:RCL), Teva Pharmaceutical Industries Limited (NYSE:TEVA), Triumph Group, Inc. (NYSE:TGI), U.S. Concrete, Inc. (USCR).

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