The markets had a very interesting day on Wednesday, gapping up and coming down hard in the morning. They bounced midday, rolled over and made nominal new lows on the Nasdaq 100. The problem was that the S&P 500 was nowhere near that, and when I saw the positive divergence, I said watch out for a late rally. A lot of stocks participated. Let’s take a look at a few of them that did very well on Wednesday.
Mattel, Inc. (O:MAT) had an interesting move on Wednesday, up 1.30 to 31.76, or 4%, on 17 million shares on Wednesday. Not only did it hit my first target, but it hit my second target at 32.20. There’s resistance up in this area. This stock, since its earnings report, has gone from 23.85 to 32.20, about 8 or 9 points very quickly. Resistance is in the long-term pattern. Target is 34-34 1/2, but it may need to back and fill and consolidate.
The Direxion Daily Gold Miners Bull 3X ETF (N:NUGT) ran 5.65 to 31.81, or 21.6%, on 11.6 million shares on Wednesday. It has gone from a low of 17.40 to 31.94. There’s a double top up there. If the short-term declining topline is taken out, then it’s a set-up to pull back for a higher move to the high 40s. The target is in the mid to high 40s, but the declining topline has to be tested first.
Sientra, Inc. (O:SIEN) finally had the breakout we were looking for on approval on Wednesday. It had a pullback low of 7.57 and ran up 1.02 to 8.97, or 12.8%, on 2.5 million shares. It then pulled back to the breakout point. Still, with this kind of volume, it could run up 10 3/4-11 as early as Thursday.
Other stocks on the long side included Central Garden & Pet Company (O:CENT), 3D Systems Corporation (N:DDD), Direxion Daily Energy Bull 3X ETF (N:ERX), Market Vectors Gold Miners ETF (N:GDX), Gold Fields Ltd. (N:GFI), Goldcorp Inc. (N:GG), Direxion Daily S&P Biotech Bull 3X ETF (N:LABU), Mattel, Inc. (MAT), Newmont Mining Corporation (N:NEM), Direxion Daily Gold Miners Bull 3X ETF (NUGT), Oclaro, Inc. (O:OCLR), Rovi Corporation (O:ROVI), Range Resources Corporation (N:RRC), Sibanye Gold Limited (N:SBGL), Sientra, Inc. (SIEN), ProShares Ultra Bloomberg Crude Oil (N:UCO), United States Oil (N:USO), VirnetX Holding Corp (N:VHC), Intrexon Corporation (N:XON).