BTU, NSM, ATHN, MNST, VOC Among Charts to Watch
Posted on October 23, 2012 at 00:04 AM EDT
There was some interesting action in the stock market on Monday as the session ended in the plus column. So we’ve discussed both longs and shorts here, more shorts than longs. Peabody Energy Corp. (BTU), a swing trade of ours, had big action on Monday, jumping 3.06 to 28.95, or 11.8%, on 34 million shares. The down trend and lateral price resistance were taken out two days ago. On Friday, it pulled back sharply, and on Monday, it jumped right back up again and made a new high for the last several months. It may be ready for a run at the target at 31 1/2, or thereabouts. Nationstar Mortgage Holdings Inc. (NSM) broke out of a nice wedge on Monday. It indicates the beautiful rising channel may continue, and if it does, look for a test of the 37 range short-term, and then the next target, which is set at 40. Athenahealth, Inc. (ATHN), which has been on the Boxer Short list since last week when it cracked, fell another 3.23 to 70.08, or 4.41%. It rolled over hard, but it's right at support. If it does break, it may be headed to the channel bottom around the 61-62 zone. If it bounces and consolidates, it may be set up for further downside. Monster Beverage Corporation (MNST) has had a terrible time of late, with a big crack of key support, and yet it can’t bounce. It has made its way lower, down another 1.71 to 75.30, or 2.2%, and has very little support all the way down to the 64-66 zone. VOC Energy Trust (VOC) had a tremendous drop in the last few days. It cracked on Friday and followed through on Monday, down another 1.05 to 15.08, or 6.5%. It is bouncing, and did bounce off the low on Monday, down around 14.33. It may very well test the low teens before long. Other stocks in our Charts of the Day are Gulf Resources, Inc. (GURE), James River Coal Co. (JRCC), Direxion Daily Gold Miners Bull 3X Shrs (NUGT), SUPERVALU Inc. (SVU), and Xinyuan Real Estate Co., Ltd. (XIN). Stocks on the short side include Abaxis Inc. (ABAX), Corporate Executive Board Co. (CEB), Church & Dwight Co. Inc. (CHD), Coinstar Inc. (CSTR), Innophos Holdings Inc (IPHS), Mellanox Technologies, Ltd. (MLNX), Nike Inc. (NKE), The TJX Companies, Inc. (TJX), United Parcel Service, Inc. (UPS) Zumiez, Inc. (ZUMZ).