Dow Puts Up A 200+ Points Rally Providing News Plays
Zion Oil & Gas, Inc (ZN) continued its upward momentum as I mentioned in my previous post. ZN put up increasing volume yesterday and followed it today with similar volume. This clearly is bad news for shorts. Keep watching and don’t short it yet. Let the selling begin before taking a plunge on the short side.
Tanzanian Royalty Exploration (TRE) cracked -5% as gold sold off after hitting $1000.00. I believe this is actually opportunity for bullish traders to buy on dips. Fundamentally gold is the right investment to be in. Every now and then you will get a sell off like i posted yesterday. Check here
Minefinders Corp (MFN) too had similar result to TRE. MFN couldn’t break the $7.00 resistance and dropped -7% for the day. Check here
Smith & Wesson Holding Corporation (SWHC) is a manufacturer and exporter of firearms. SWHC is reaching its critical 200 dma. This could setup an interesting short play. Every pop has eventually been sold into and I see similar action again. The only thing that is alarming is that the volume is actually rising. This could put more buying/short covering pressure as early shorts get squeezed out. Lets see if 200dma resistance holds ?
Anadys Pharmaceuticals, Inc. (ANDS) is a biopharmaceutical company focused to develop medicines in the areas of hepatitis C and oncology. This stock has run up from $2.00 to $8.00 in matter of a month. The volume is drying out and now we saw the second day of selling giving nice 5.7% gain on the downside. However this is not done yet. This stock can keep going lower and lower and wont find support till $6.00.
PharMerica Corporation (PMC) is an institutional pharmacy services company. PMC is another stock that is slowly approaching its 200 dma at $19.88. Current RSI is above 70 and indicates overbought levels. This is short play below the 200 dma, with stop loss on the break of $20.00
Other potential shorts to keep watching are: MYL, HTH, BWLD,
On the long side, HPQ as recommended yesterday played out perfectly. After recovering from its lows HPQ bounced back up nicely. I expect the run up to continue since the double bottom held well.
All long plays suggested yesterday were green (INTC, MCD, JNJ and FRO), with INTC popping up 5%.
[...] long worked out perfect as mentiond in previous post. Once it double bottomed it rallied nicely providing almost $2.00 gain. RSI is improving and I [...]