It was a tough day for the market on Wednesday. Very tough. Very tedious-type trading, and a bit harrowing as well. There aren’t very many days like that, but Wednesday was one of them. It looks like they are either at a short-term low, or they are going to have a severe crack, and it will get much deeper if they do. It is a critical time for the market, but let’s keep vigilant and hope for the best. We’re going to take a look at both shorts and longs here, starting with the long side.
Nektar Therapeutics (NASDAQ:NKTR) was up 88 cents to 13.45, or 7%, on 6.8 million shares, and has been up 7 days in a row. It formed a head-and-shoulder base pattern that started to move. On Wednesday, it had a breakaway gap that may very well catch momentum and head up towards 14 1/2 short-term. The secondary target is 16 1/4.
Sorrento Therapeutics, Inc. (NASDAQ:SRNE) has been doing very well of late. It got all the way up to 17.80, before backing off and closing at 16.67 on Wednesday, barely up 2 cents on 1.1 million shares, so perhaps there’s a reversal in progress. A lot of biotechs got that reversal. SRNE was trading at 8.00 and change just 7 weeks ago, and has gone up 5-waves. The fifth wave may have more to go. Be careful on this one. Keep watching the 16.78 level and Tuesday’s low at the 12 1/4 range for a possible stop. Long-term targets are 20-20 1/2, and then the mid 20’s.
Stocks on the Short Side….
Michael Kors Holdings Limited (NYSE:KORS), a retailer, topped, stair-stepped down, flagged and formed a bear wedge over and over on its way down. It then made a breakaway move to the downside, forming an exhaustion gap or spike-down climax. However, the wedge that formed below the gap is indicating that it wants to move lower to 45 1/2. If it breaks here, it could drop 8-9 points. Be careful with this one.
SanDisk Corp. (NASDAQ:SNDK) is falling down despite takeover rumors. It spiked down, formed a bear flag, spiked down again, formed a bear wedge, and now it’s coming down again right on support. If it gets through 63-63 1/2, then it should see the mid 50’s, maybe even 52-3.
Other stocks on Harry’s Charts of the Day included Applied Optoelectronics, Inc. (NASDAQ:AAOI), Alder Biopharmaceuticals Inc. (NASDAQ:ALDR), Anacor Pharmaceuticals, Inc. (NASDAQ:ANAC), Rockwell Medical, Inc. (NASDAQ:RMTI), and Take-Two Interactive Software Inc. (NASDAQ:TTWO).
Stocks on the short side included Fossil Group, Inc. (NASDAQ:FOSL), Norfolk Southern Corporation (NYSE:NSC), Open Text Corporation (NASDAQ:OTEX), Pacira Pharmaceuticals, Inc. (NASDAQ:PCRX), TAL International Group, Inc. (NYSE:TAL), TriNet Group, Inc. (NYSE:TNET), Universal Electronics Inc. (NASDAQ:UEIC), Union Pacific Corporation (NYSE:UNP), and Workday, Inc. (NYSE:WDAY).