BGZ, FAZ, SCO, TZA, VXX - Stock Charts to Watch
The market got slam dunked hard on Wednesday. There still may be some more downside to go, but the market is getting quite oversold. The charts review both longs and shorts on the charts so that you see how both sides are doing overall, but we’re going to highlight the Ultra-short ETFs for Wednesday. It’s going to take a real market spike down to get up there, but it could occur. Right now they’re looking really well so we want to take a closer look at them.
The Direxion Daily Large Cap Bear 3X Shares (BGZ) was in a big down trend that started back in December. It got down into the 32 level in April, bounced to a low that was retested late in May, and reversed. The stock spiked up from 33 1/2 to 35 1/4 and just kept going. It reached near 40 on Wednesday, up 1.97 to 38.19. If it continues this run up it could test the 42 1/2-3/4 zone short-term. That would be a key test of overhead resistance. A breakout above that could lead to even higher levels, but let’s see what the market does here.
The Direxion Daily Financial Bear 3X Shares (FAZ) is also in a very good position after coming down over the last year or two. It finally stabilized in the 37 range three times from February to mid-May, retested each time, and is now moving up to test resistance. It backed off, the moving average held, and it spiked up from 41 3/4 - 42 zone to 52 1/4, about a 10-point move, and then it had a quick 2-day pullback. On Wednesday it had a gap up and run, up 2.92 to 51.22, or 5%, on 13 million shares. It’s right at resistance, and a move through here could get it to the high 50s potentially if the market cascades lower.
The ProShares UltraShort DJ-UBS Crude Oil (SCO) had a significant move on Wednesday. Over the last month or so this stock has been consolidating. After coming down in a falling wedge it popped out on big volume in May, and consolidated sideways for about four weeks. Last week it took a little bit of a move, backed off Tuesday, and popped out right up to the 6-month resistance level on Wednesday, up 3.30 to 48.55, or 7 1/4%, on 2.4 million shares. It that’s taken out it could lead to higher levels. Targets are at 53 1/2 and then 59 1/2. That would probably mean oil is coming down pretty hard for that to occur.
The Direxion Daily Small Cap Bear 3X Shares (TZA) has been breaking out over this month. It pulled back on Tuesday and then on Wednesday it spiked right back up 2.11 to 41.82, or 5.3%, on 24 million shares. That’s the biggest volume this year, and may indicate it wants to move higher. The target is at 45 - 45 1/2 short-term, and 48 1/4 - 48 1/2 going forward.
The iPath S&P 500 VIX Short-Term Futures ETN (VXX) broke through the declining topsline, and on Wednesday it spiked up to the 50-day moving average, up 1.l9 to 24.43, or 8 1/2%, on 49 million shares. It’s the heaviest volume since March and may be increasing here. It will be interesting to see if it gets through the lateral price resistance at 25 - 25 1/2. The projected price resistance is at 23 - 23 1/4, which you may see as early as Thursday. If 25 1/2 is taken out, this stock could get up into the high 20s.
Other stocks in our Charts for the Day are Clean Diesel Technologies Inc. (CDTI), Coffee Holding Co.Inc. (JVA), Korn/Ferry International, (KFY), LiveDeal, Inc. (LIVE), Oncothyreon Inc (ONTY), Sequenom Inc. (SQNM), Express-1 Expedited Solutions Inc (XPO).
The Boxer Shorts in our Charts for the Day are Aruba Networks, Inc. (ARUN), Cree Inc. (CREE), Cyberonics Inc. (CYBX), DigitalGlobe, Inc. (DGI), Dawson Geophysical Co. (DWSN), Gen-Probe Inc. (GPRO), Pioneer Southwest Energy Partners L.P. (PSE), Rockwell Automation Inc. (ROK), Sina Corp. (SINA), Sohu.com Inc. (SOHU), Stratasys Inc. (SSYS), Trimble Navigation Limited (TRMB).