One of the stranger trading moments last week was when O’Reilly Auto Parts announced their earnings after hours. I was short the stock (I have written about it many times), and the stock plunged from the lower 200s down to the upper 180s. “Yow-Hoo!” thought I. The stock kept getting battered lower, and when it opened the next morning, it was down hard.
I tightened up my stop quite a bit, but never thought it would get hit. When I came back to my screen a little later, my stop had been taking out, and the stock had gone from being down huge to being up huge. I could hardly believe my eyes. Thanks to my stop, I got out with a nice profit, but it was much “nicer” before.
It’s all about tech this morning – – 280 companies reported earnings yesterday, but the megacap tech stocks had blowout earnings which are pushing them all higher. This really just leaves one last monster – – Apple – – to round out the good news when it reports next week.
Leaning again on my short positions, here are three finance-related ones from my portfolio I wanted to share:
I’ve presently got fifty-seven different equity short positions. That sounds insane given what the market is doing, but there you have it. I wanted to share a few of them form the real estate sector that I think are particularly intriguing:
(Note from Tim: I have provided a hyperlink to the SlopeCharts for each symbol.)
Ignyta, Inc. (RXDX) popped 7%, or 95 cents, Tuesday, closing at $14.35 on heavy volume of 1.4 million shares traded. The move came on news of both positive clinical trial results and an announcement from the European Medicines Agency that it has given special designation and support to the company’s tumor drug. The stock has been on a strong march up since it broke above its bull wedge consolidation pattern on October 2, when the biotech company had announced positive drug data. There is significant lateral resistance around $15, notable because price could not persist above $15 the last time it was this high in December 2015. Beyond that, the rising channel top points to the potential of $22-$24.
Mirati Therapeutics, Inc. (MRTX) rose 55 cents to close at $14.25 Tuesday on no news. The stock has gained 400% since May 31. Price has been consolidating in a beautiful bull flag pattern for the past 9 days. If there is a return to momentum in the biotech sector, this oncology drug stock may run to $15.50 again in the short term and $20 soon after that. (more…)
Retail continues to perform nicely for the one bear left on this entire planet. Chico’s, for instance – – purveyor of threads to women of a certain age – – is the gift that keeps on giving.