It was an interesting day on Wall Street on Wednesday. They plunged them, they ripped them, and they closed them lower, but way off the low. There was a massive Nasdaq 100 rally, a 185 points, and about 66 for the S&P 500. It was a huge move off the low, and pretty much a strong reversal.
The Direxion Daily S&P Biotech Bull 3X ETF (N:LABU) was an awesome trade on Wednesday, up 1.09 to 9.55, or 12.88%, on 13.8 million shares, after getting down to what appears to be an all-time low. That’s the biggest volume this stock has ever seen. The reversal to the upside is very well for future price progress. Look for a follow-through on Thursday, and once it gets through the 10-10.50 range, the targets are 11.00 and 12.50.
Nautilus Inc. (N:NLS) has been acting great. The action over the last couple weeks when the market was pulling apart, NLS held up well. Yes, it pulled back from 21.00 to 16.00, but on Wednesday it popped back to 20, up 1.77 to 19.75, or 9.8%, on 6.8 million shares. The volume and OBV both increased. There’s still resistance around 21 1/4-1/2. That’s the level to watch going forward. If it gets through that, look for a run up to 23. Anything beyond that and it will be headed to the high 20s.
Zafgen, Inc. (O:ZFGN) had some big drug news on Wednesday, and exploded from 5, and change, to 10.00, up 4.42, or 79%, on 24 million shares. It reached as high as 11.88 earlier in the day. That kind of historical volume coming out of a gap, it looks like double resistance as well as the moving averages, and trend line. Look for a run at the 19 range going forward and see if it gets a follow-through there.
Stocks on the long side included Bluebird bio, Inc. (O:BLUE), Celldex Therapeutics, Inc. (O:CLDX), Esperion Therapeutics, Inc. (O:ESPR), Exelixis, Inc. (O:EXEL), Direxion Daily S&P Biotech Bull 3X ETF (LABU), Neurocrine Biosciences Inc. (O:NBIX), Nautilus Inc. (N:NLS), Omega Protein Corporation (N:OME), Rovi Corporation (O:ROVI), Wayfair Inc. (N:W), Zafgen, Inc. (O:ZFGN).