Another ugly day on Wall Street on Thursday. We’re not going to look at the indices yet, but I think we’re not going directly lower. Instead, we’re probably going to back and fill and maybe do a wave four consolidation, or the final wave down. I’m looking at some longs and shorts here. What is really interesting is that all of the biotech’s, particularly junior biotech’s, were moving very nicely on Thursday.
Stocks on the Long Side….
The Direxion Daily Jr Gld Mnrs Bull 3X ETF (NYSE:JNUG) was up 1.01, or 11%, to 10.30, on over 14 million shares traded, on Thursday. It broke out of the base, and now looks like gold is finally making its major move. The long-term declining topline will be tested as early as Friday up around 10.85-.95. If it gets up there and backs off, that would be normal. If it blows through it, we could see 11 3/4.
VelocityShares Daily 2x VIX Short Term linked to SP 500 VIX Short Fut Exp 4 Dec 2030 (NASDAQ:TVIX) jumped 6.09, or 9%, to 72.81, also over 14 million shares, on Thursday. It made a 3-wave corrective move, and then ran-up in a 4-wave channel move. The pullback from lateral price resistance at the top of the short-term channel is best for a pullback, but if it gets one more wave down in this market, just having pulled back for a week and consolidated, it could explode into the 110-112 range, or more. Keep an eye on it. Stop underneath 66.
Veracyte, Inc. (NASDAQ:VCYT) is another biotech that is acting great. it popped above the declining topsline on Thursday, gaining 1.09, or 9%, to 13.09, on 466,720 shares traded. The volume picked up some. It looks pretty interesting, and if it can get up through the 13.65 area as early as Friday, we may get a test quickly at 15 1/2. Ultimately, it will make it up to my swing target at 19.
Stocks on the Short Side….
Axon Enterprise, Inc. (NASDAQ:AAXN) formed another bear flag, and it’s a tight one, which usually means it’s bearish or that it’s going lower. It popped out of the flag on Thursday, dropping 1.82, or 4%, to 43.29, on nearly 4 million shares traded. The bottom line is that the next target is about 36 1/2.
Swing trade IntriCon Corporation (NASDAQ:IIN), with a head-and-shoulder top, broke down a couple times, formed two bear flags, and on Thursday, it dropped another 1.18, or 5%, to 24.63, on 201,251 shares traded. This is a stock that was up around 66-67 just three months ago. I wouldn’t be surprised if at some point it makes it all the way down to the 17-18 range.
Weight Watchers International, Inc. (NASDAQ:WTW) is a long-standing Tech Trader short swing. It dropped precipitately from 100 all the way down to 36, and doesn’t look done, quite frankly. On Thursday, it was down 3.34, or 8.37%, to 36.55, on 3.4 million shares. The next target is 34 1/2-33. It might get down to the high 20’s before it’s over, if it gets a full-fledged wave five, bear phase.
Stocks on the long side included Adial Pharmaceuticals, Inc. (ADIL), Agenus Inc. (AGEN), Arsanis, Inc. (ASNS), BioXcel Therapeutics, Inc. (BTAI), Direxion Daily Jr Gld Mnrs Bull 3X ETF (JNUG). Direxion Daily Gold Miners Bull 3X ETF (NUGT), Lannett Company, Inc. (LCI), MOGU Inc. (MOGU), Osiris Therapeutics, Inc. (OSIR), VelocityShares Daily 2x VIX ST ETN (TVIX), ProShares Ultra VIX Short-Term Futures (UVXY), and Veracyte, Inc. (VCYT).
On the short side, stocks included Axon Enterprise, Inc. (AAXN), CRISPR Therapeutics AG (CRSP), Intuitive Surgical, Inc. (NASDAQ:ISRG), Medifast, Inc. (MED), New Relic, Inc. (NEWR), Nevro Corp. (NVRO), Polaris Industries Inc. (PII), PTC Inc. (PTC), Visteon Corporation (VC), Wix.com Ltd. (WIX), and Weight Watchers International, Inc. (WTW).
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