The markets had an interesting day on Monday. The day started out looking very promising, but midday they took a surprising turn for the worse in a 5-wave decline that took them down and kept them down for the rest of the day. We have lots to look at here, both longs and shorts, so let’s get started.
EXACT Sciences Corporation (NASDAQ:EXAS) looks very good. As far as I’m concerned it has gone five waves, retested, and then a sell off ensued for the rest of the day. An afternoon rally retested back to the lows, ending the session negative on the day. It broke out on Monday, up 91 cents, or 5%, to 20.31, on 2.3 million shares traded. The volume wasn't heavy enough for me. I would like to see 4-5-6 million. It poked its head out at resistance, and closed above it. For me, the next target to take out would be resistance around 21. It may get that as early as Tuesday. If it does, look at 22.80, and the 24 zone for targets. If this is a massive four-waves up, the fifth one could be huge, reaching the low-to-mid 30’s. It has six days to cover .
Exelixis Inc (NASDAQ:EXEL) made another new high on Monday, up 9 cents to 13.64, reaching 13.95. This stock has gone from 3.00, and change, to 13.00, and change, nearly 14.00. That is a huge move, but the momentum has not been lost, and the OBV is looking good. I wouldn’t be shocked to see 15 as my next target.
Stocks on the Short Side….
Royal Caribbean Cruises Ltd (NYSE:RCL) is right on support. On Monday, it was down 84 cents, or 1.27%, to 65.48, on 2.2 million shares traded. If it breaks below 64, it will be headed very sharply lower. Keep an eye on this one. Massive top formation is in play, and could lead to a very sharp breakdown as low as the low 50’s.
Signet Jewelers Ltd (NYSE:SIG) is rolling over in a down trend, and on Monday it was down 57 cents to 77.20, on 1.5 million shares traded. I’m looking for 70-71, maybe even mid 60’s.
Stocks on the long side included Avon Products Inc. (NYSE:AVP), Accelerate Diagnostics Inc (NASDAQ:AXDX), Colucid Pharmaceuticals Inc (NASDAQ:CLCD), Exact Sciences Corporation (EXAS), Exelixis, Inc. (EXEL), Gigamon Inc (NYSE:GIMO), Direxion Daily S&P Biotech Bull 3X Shares (NYSE:LABU), LeMaitre Vascular Inc (NASDAQ:LMAT), Mazor Robotics Ltd (NASDAQ:MZOR), PTC Inc (NASDAQ:PTC), Resolute Energy Corp (NYSE:REN), Sarepta Therapeutics Inc (NASDAQ:SRPT), and Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE).
On the short side, stocks included Chipotle Mexican Grill, Inc. (NYSE:CMG), Salesforce.com Inc (NYSE:CRM), Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH), Royal Caribbean Cruises Ltd (NYSE:RCL), Red Robin Gourmet Burgers Inc (NASDAQ:RRGB), Signet Jewelers Ltd (NYSE:SIG), WebMD Health Corp (NASDAQ:WBMD).