It was a very nasty day on Wall Street, though not unexpected. The markets are in a dramatically dropping mode, although the oscillators aren’t quite oversold. They’re getting there. The entire trend may be in doubt, and potentially headed lower. We’ll be looking at ultra-shorts and shorts here to see what's going on.
The Direxion Daily S&P Biotech Bear 3X ETF (NYSE:LABD) really exploded recently with the implosion of biotech stocks. It has gone from 29.00 to 59.00 in six sessions, and is right up again the high from September. There could be some pullback opportunities, but the momentum could take it into the mid 60s. It was up 10.31 to 57.03, or 22%, on two million shares on Monday. Let’s see where it goes from here.
The ProShares UltraShort Bloomberg Crude Oil (NYSE:SCO), which we have been following, is doing really well. On Monday, it was up 4.01 to 86.91, or 4.66%, on 656,000 shares traded. It is in a wedging pattern or some sort of basing pattern. If it gets up through 95.00 it will rock higher.
The CEB Inc. (NYSE:CEB), a Boxer Short, got whacked, formed a bear wedge, then a bear flag. It was down 1.71 to 68.51. It’s four waves down and could go a fifth wave down to 60, and then 62. Those are the targets on this stock.
ManpowerGroup Inc. (NYSE:MAN) was down 3.81 to 79.25 on Monday. It has a beautiful drop and rising wedge, having rolled over from 90 to 79 in a week and a half. It’s headed to the mid 70s, and then low 70s, or lower.
Other stocks on the long side include ProShares Ultra VIX Short-Term Futures (NYSE:UVXY), ProShares UltraShort NASDAQ Biotech (NASDAQ:BIS), Direxion Daily Emrg Mkts Bear 3X ETF (NYSE:EDZ), Direxion Daily Energy Bear 3X ETF (NYSE:ERY), ProShares UltraPro Short S&P 500 (NYSE:SPXU), VelocityShares Daily 2x VIX ST ETN (NASDAQ:TVIX), and Direxion Daily Small Cap Bear 3X ETF (NYSE:TZA).
Stocks on the short side include Tableau Software, Inc. (NYSE:DATA), Harman International Industries, Incorporated (NYSE:HAR), Mallinckrodt (NYSE:MNK) Public Limited Company (NYSE:MNK), Qualys, Inc. (NASDAQ:QLYS), Red Robin Gourmet Burgers Inc. (NASDAQ:RRGB), TAL International Group, Inc. (NYSE:TAL), TriNet Group, Inc. (NYSE:TNET), Tupperware Brands Corporation (NYSE:TUP), Universal Electronics Inc. (NASDAQ:UEIC), and United Rentals, Inc. (NYSE:URI).