I’m about to toddle off to bed, but before I do, I wanted to mention what I see going on tonight with after-hours markets. Asia was apparently on fire, roaring skyward (for no apparent reason – – bulls haven’t needed one for years). However, that seems to have reversed, and (as of this moment anyway) the ES and NQ have turned into my favorite color, and the Nikkei looks like this:
Of course, who knows what it’ll be like when I wake up. Anyway, good night, Slopers!
UPDATE: Well, I’m up, and miracle of miracles, the selloff actually stuck. The NQ was down about 50 points when I woke up. So now we shall see if, for the 3,879th time in a row, the bulls simply bid things up again or if they actually suffer a tiny, tiny bit.
Oil has been completely bananas today. Aside from this insanity, energy stocks still have some interesting topping patterns. They’ve had tremendous strength for weeks, but I think they’re ready to flip lower. Here are a couple………
Another nice “bomb” today from my collection of shorts (I think I mentioned this once yet again yesterday) Harsco………nice trendline failure!
Here are four stocks to watch riding positive earnings announcements.
Health Insurance Innovations, Inc. (HIIQ) broke out above a key resistance level on Tuesday, up $1.50, or 6.7%, closing at $23.70. The move above the $23 resistance level, which came on light volume of 945,700 shares, saw price cross over to the positive side of the 50-day moving average for the first time in two months. The stock is bouncing back from a steep decline in September, and has been climbing in a rising triangle pattern since its bottom at $12.65 on September 28. A week ago, the Web-based health coverage provider topped Wall Street’s expectations in its earnings report. Next targets: $27.75 and $33.
Lannett Company, Inc. (LCI) shot up and out of a bull wedge consolidation, gaining 15%, or $3.25, to close at $24.43 on very heavy volume of 2.1 million shares traded Tuesday. The recreational vehicle components manufacturer has thrived in the booming RV market, reporting unusually strong sales in its earnings announcement the day before. Price hit the resistance level at $25, which mirrors the October 16 high and forms a double top pattern. If the stock can close above that top, next targets will be $28 and $33. Short interest of about 23 times its average volume could fuel the move as shorts cover on a rally. (more…)
I woke up this morning to a smattering of nice down-moves, including Davita, shown below. It’s down over 10% right now, and I think, given the completed topping pattern, it has plenty more potential downside.