It was a nasty day on Wall Street. There were the 5-wave declines, and then a formation of bear wedges at the end of the day, and a last minute pullback. It was a nasty 1 1/2-3/4% day down for most indices. Let’s take a look at some ultra-short longs, and Boxer Shorts here.
The ProShares Ultra VIX Short-Term Fut ETF (ARCA:UVXY) has had a big run, up 7.82 on Wednesday to 48.05, or 19%, on 20 million shares. For the first time in a while, very big volume has come in for this stock. It has had big volume before, but this is the biggest we’ve ever seen. The chart shows this stock as having several spikes, and it broke each time to the downside. These are ETFs, but, in my opinion, made to be declining-balance type stocks. Great for day trades, but it needs a follow-through on Thursday, or it could come right back down to the high 30’s, or to test Wednesday’s low at the 42-3 range. If it does get above Wednesday’s high at 49 1/2, you may see 56-7 short-term.
The Direxion Daily FTSE China Bear 3X ETF (NYSE:YANG), along with the other Chinese ETFs, has exploded with the collapse of the Chinese markets. On Wednesday, this stock was up a whopping 19.07 to 105.90, or 22%, on 1.6 million shares. It has gone from 47.00 to Wednesday’s high at 106.10, and from 55.00 to 106.00 in a week and a half. If it does get a follow-through on Thursday, and the market does come down in the morning, watch for a move up to 115 plus, possibly 8-10 points higher. If that occurs, it’s important to be careful because it will have gone 100% up in a week and a half.
Stocks on the Short Side….
Qualys, Inc. (NASDAQ:QLYS) had a nice uptrend, then a breakaway gap to the downside, a rising wedge that took out price resistance and 50-day moving average, and formed a perfect parallel down channel on only waves one and two. Wave three is well on its way. You can see on the chart how this stock is collapsing. It was down 98 cents to 36.50, or 2.6%, taking out the low and closing right on it. The long-term trendline is right underneath there. The target is 30.
TriNet Group, Inc. (NYSE:TNET) was a Boxer Swing Short in late May, early June, then rolled over, and is coming down. On Wednesday, it dropped 25 cents to 25.21, or 1%, on just over a half million shares. It’s at its first target at 25. The next target is set at 22-22 1/2.
Other stocks on Harry’s Charts of the Day included Direxion Daily Gold Miners Bear 3X Shrs (NYSE:DUST), Direxion Daily Jr Gld Mnrs Bear 3X ETF (NYSE:JDST), Direxion Daily Emrg Mkts Bear 3X ETF (NYSE:EDZ), Direxion Daily Russia Bear 3X ETF (NYSE:RUSS), and ProShares UltraShort DJ-UBS Crude Oil (ARCA:SCO).
Stocks on the short side included Pacira Pharmaceuticals, Inc. (NASDAQ:PCRX), TAL International Group, Inc. (NYSE:TAL), Universal Electronics Inc. (NASDAQ:UEIC), United Rentals, Inc. (NYSE:URI), and Yelp, Inc. (NYSE:YELP).