Even though the markets are volatile and difficult to see the direction, the primary trend remains up. And as always, the trend is your friend. The NDX did make a nominal new high at 6009 last week and both the NDX and SPX remain in an up trending channel (and have since 2009). The Dow transportation index is also looking bullish so there is no negative divergence with the other indices. It is trading at the lower end of its up trending channel. The small caps (IWM) is a mixed picture but remains in a sideways basing pattern. It is, currently in a short term down trending channel in the middle of the base range.
Biotechs appear to be leading the market now the two ETFs, LABU and BIB, have broken above lateral resistance and have some room to move to the upside before coming into resistance again.
The semiconductors (SMH) are in a consolidation/distribution phase. The technicals, to me, are pointing to distribution. Many of the big names are looking weaker or already have broken down.
Financials (FAS) even look worse. The ETF has broken through the up trending channel support line and appears to have made a head and shoulders pattern. The neck line of that pattern has been broken. FAS could lead the markets lower.
Gold (GLD) has started a new up trend having broken through the long term descending tops line. It is at the top of the shorter term up trending channel and lateral resistance so we may see it correct in here. GDX is also right on the lateral resistance and a break through $25.50 area it should run to $29.00. The GDXJ (junior miners) is still lagging but has broken out across the declining tops line and is up against lateral resistance. NUGT and JNUG, the 3x leveraged gold miner ETFs are much the same.
ABEO: After the run up from $10.50, the stock traded as high as $15.25 and has pulled back and consolidated. It has held support in the low $13 range. Yesterday it traded as high as $14.20 closing at $13.85. I would look to go long this stock of $14.20 with adds over $15.25 (or sell if it fails). Above that range and $17.50 is the price target. Short ratio, 10.8 days to cover so if it pops it could really go as shorts get squeezed.
ADAP: Stock doubled in two days and ran into lateral resistance at $9.00 from last year. It is somewhat extended but if momentum continues then $11.25 is the price target.
AVEO: Stock is in a nice rising trend channel after popping off its base below $1.00. It is near the top of the channel and lateral resistance at $4.25. But through that level and $6.00 is the price target.
CONN: A stock I wrote about in the past has come back and is trading right near the recent highs. On Friday it traded up to lateral resistance at $23.75 and closed at $22.60. It has had a big move in the last 6 days coming from $17.00. It needs to get through $23.65. But if it can then $29.00 is the price target. Short ratio, 14.6 days to cover so any break out could fuel a short squeeze.
CORT: Very strong chart pattern and the stock just keeps trading higher after I alerted it at $13.00. On Friday it traded as high $17.50 closing at $17.26. It may be at the top of the up trending channel. Though with this acceleration the angle of ascent may have changed and $19.00 is the next target. I would look to go long over $17.50. Short ratio 6 days to cover.
CYRX: Since it gapped down to $2.00 it has been in a strong up trending channel and just keeps powering higher. Recently it broke through lateral resistance at $8.00 and on Friday it double topped at $9.20 closing at $9.03. Over $9.20 and $10.00 is the next target.
HDSN: Stock remains in an up trending channel. It has lateral resistance at $9.50. But the chart is strong and the fundamentals good for the company. Over $9.50 and I will add to my swing trade. Price target $12.00 and then $14.00. Short ratio 3.9 days to cover.
NLNK: What a move the last two days. On Friday it traded up to lateral resistance at $19.25 and closed at $17.67. But with the huge volume there is a lot of interest in this stock. If it trades above $19.25 then $23.00 and $25.00 are targets. Short ratio 14.5 days to cover so the squeeze may be on.
OSUR: This a very strong chart. It just keeps flagging and then breaking out and moving up. It has just recently broke out of the flag pattern in a strong up trending channel. Over $21.85 and I am looking for $24.00 as a price target. Short ratio, 5.5 days to cover.
TROX: Stock has been consolidating the last 6 months and over the last few days has broken out through lateral resistance. On Friday it traded as high $22.43 closing at the HOD. If the momentum continues then $25.00 and $29.00 are price targets.
VCEL: Biotech stock that, after forming a base for the last year broke out above $3.00 in June and then more recently out above $3.50. Over the last week it has been consolidating and closed at $4.45 on Friday. I will look to go long over $4.50. Price target is $6.50. Short ratio 3.8 days to cover.