EDZ, TZA, DECK, NFX - Stock Charts to Watch
The stock market took another hit on Tuesday, and the S&P 500, which broke on Monday, broke through the 50-day moving average. That’s the first time it’s been below the trend line and the moving average since December. So we’re going to take a look at stocks on the short side, including several ultra-shorts, to see how they’re doing.
The Direxion Daily Emrg Mkts Bear 3X Shares (EDZ) had a major top until the reversal day back in October. It was up around 37 at the time. It came down, bounced, bounced again, formed a large, and then a falling wedge. The key, however, was the declining topsline, which was near where the 50-day moving average had been. In February and March, it came down to lower lows, retested, bounced, retested, and in the process of doing this, it formed a base. In the last few days, it dropped from the 11.94 range to 14.26, and on Tuesday, it went from 13.49 to 14.26. It cleanly broke out across the first line of resistance, but back above all moving averages. The base is incomplete. The volume is 4 million shares, which is the heaviest volume going back to December. With the ultra-short surge and breakout, and the market rolling over and taking out support, it’s looking like the EDZ could be in some dire straits here. The best thing to do here at this point is to stay defensive.
The Direxion Daily Small Cap Bear 3X Shares (TZA) is acting great, especially in the last week. In the last 5 days, it’s gone from 17 to 21. This stock had a big reversal day in October as well. It was up around 63.87, and has gone all the way down to under 17, had a large falling wedge, and finally moved back above the moving averages, taking out the 10, 21, and 50-day moving averages. There will be some resistance around 21.35, but if it blows through there, it should get up around the 26 – 27, maybe even low 30’s zone.
Deckers Outdoor Corp. (DECK) has been a favorite short of ours since it cracked in December. It formed a large, 2-month wedge before it really fell. Now it’s in a sliding channel unable to make any headway. At this point, this stock may take it even lower. Currently at 62.46, 54 is the new target, followed by something in the mid-to-high 40’s.
Newfield Exploration Co. (NFX) came down hard in July, August, and September of last year, bounced, came down a couple more times and bounced, and on Tuesday, it cracked that base line, dropping 1.13, or 3.3%. The long-term chart shows the bottom of the channel down around 29.
Other stocks in our Charts for the Day are S&P 500, the Direxion Daily Financial Bear 3X Shares (FAZ), VelocityShares Daily 2x VIX ST ETN (TVIX), ProShares Ultra VIX Short-Term Fut ETF (UVXY), Alaska Air Group, Inc. (ALK), Apco Oil & Gas International Inc. (APAGF), American Public Education, Inc. (APEI), CARBO Ceramics Inc. (CRR), Cash America International, Inc. (CSH), Golar LNG Ltd. (GLNG), Great Northern Iron Ore Properties (GNI), Hi Tech Pharmacal Co. Inc. (HITK), Home Inns & Hotels Management Inc. (HMIN), Helmerich & Payne Inc. (HP), OPNET Technologies Inc. (OPNT), Pitney Bowes Inc. (PBI), Rovi Corporation (ROVI), A. Schulman, Inc. (SHLM), South Jersey Industries, Inc. (SJI), Ultra Petroleum Corp. (UPL), US Home Systems Inc. (USHS), WebMD Health Corp. (WBMD), Western Gas Partners (WES), World Acceptance Corp. (WRLD).