The markets had an interesting day on Tuesday, gapping up and running, and then backing off midday, but coming on at the end of the day. It was definitely a good way to start the week and the year, with the Dow Jones 30 up over a hundred points, and the rest of the indices strong, particularly Nasdaq 100. We’re going to take a look at mostly longs, but a few shorts.
Cemtrex Inc (NASDAQ:CETX) has had a nice little move since the swing trade. It popped, pulled back, formed a wedge, exploded out of the wedge, formed a breakaway gap, and ran up. On Tuesday, it was up 67 cents, or 9%, to 8.05, on 1.9 million shares traded. My target is 8-8 1/4. It’s already up in my target zone, so I would look for some pullback consolidation. Ultimately, this could be a stock that reaches in the low teens, maybe 12 or 13.
Depomed Inc (NASDAQ:DEPO), on rumors of a takeover, popped 2.32, or 13%, to 20.34, on 6 million shares traded on Tuesday, and closed at the upper end of the range. Key resistance now lies at about 21 1/2. Watch the gap and double top. If it gets through that, look for it to be a 24 1/2-25-dollar stock. It has 9.5 days to cover .
Geo Group Inc (NYSE:GEO) extended its move and broke out, up 50 cents, or 1.39%, to 36.43, on 648,589 shares traded on Tuesday. Its volume needs to be a little bit better, but it looks like it’s making a run up towards 371/2-38 short-term, and then 40 intermediate-term. There’s 3.28 days to cover .
Supernus Pharmaceuticals Inc (NASDAQ:SUPN) may be on the verge of coming out of a wedge. On Tuesday, it popped up through, up 70 cents, or 2.77%, to 25.95, on 365,319 shares traded. If it can get the volume up to about 400,000, this stock could be a 32-34-dollar stock.
Stocks on the long side included Aerie Pharmaceuticals, Inc. (AERI), Cymabay Therapeu (NASDAQ:CBAY), Cemtrex Inc. (CETX), Ceragon Networks Ltd. (CRNT), Depomed, Inc. (DEPO), VelocityShares 3x Inverse Natural Gas linked to S&P GSCI Natural Gas Excess Return (NYSE:DGAZ), The GEO Group, Inc. (GEO), Direxion Daily Junior Gold Miners Bull 3X Shares (NYSE:JNUG), Direxion Daily Gold Miners Bull 3X ETF (NUGT), Supernus Pharmaceuticals, Inc. (SUPN), Valero Energy Corporation (NYSE:VLO), and Zynerba Pharmaceuticals, Inc. (ZYNE).
On the short side, stocks included Ambarella Inc (NASDAQ:AMBA) and DexCom Inc (NASDAQ:DXCM)