CREE, FAZ, PEGA, TZA Among Charts to Watch

CREE, FAZ, PEGA, TZA Among Charts to Watch By Harry Boxer, www.TheTechTrader.com an AdviceTrade.com publication

Wall Street had yet another bloodbath on Wednesday. The indices were all over the place, and at the end of the day, they rolled over and got hammered. The Dow was down 520 points. It was one of the worst declines in history. Fortunately, 1100 S&P 500 was not taken out. After that kind of day, we’re going to go over stocks that acted well on Wednesday and show some positive strength as well as some ultra-shorts to see what the danger is with these, and also their potential.

Cree Inc. (CREE), which on a blow out on earnings and heavy short coverings, has been on the Box Short list for several months now. It dropped from the mid 50s to the 20s, and finally broke and turned around on Tuesday, and then ran hard on Wednesday, up 4.59 to 34.08, or 15 1/2%, on 18 million shares. It did get up to the declining topsline and above the lateral price resistance, and managed to close above the 21- and 50-day moving averages, however, at the price resistance line. It will be interesting to watch this stock over the next few days, if the market does decline, to see how it holds up. Wednesday’s low around 31 3/4 is the key level to watch.

Direxion Daily Financial Bear 3X Shares (FAZ) ultra-short ran hard from the 40s up to the 81 area, almost doubling in two weeks. It came down very hard, going from 81 down to about 61 on Tuesday, dropping 20 points in one day, and then gapping up and running 11 points on Wednesday to 72.10. Quite the volatile instrument there. Keep an eye on resistance up around 80 - 81 1/2, if the market does get crazy and it spikes up, that would be the resistance.

Pegasystems Inc. (PEGA) had a big day on Wednesday. It spiked on earnings, up 5.50 to 40.68, or 14%, on 1.77 million shares, which is huge volume for this stock, especially on a day like we had on Wednesday. It closed off the highs and was up to nearly 48 at one point, and managed to close down around the moving averages. We’ll have to see what kind of follow-through, if any, it gets. Short-term resistance is up around 44 3/4, and then 47 1/2 is the next target.

Direxion Daily Small Cap Bear 3X Shares (TZA), after running up hard from 31 to 68, the biggest percentage move of any of them, it came down hard, dropping from 68 to 52 on Tuesday alone, but on Wednesday it spiked back up 7.25, or 14%. The 51 1/2 - 52 zone is the area to watch. It’s key short-term support. A move up toward the mid to high 60s would counter resistance, and then a move through that could blow this stock into the mid to high 70s.

Other stocks in our Charts for the Day are Direxion Daily Large Cap Bear 3X Shares (BGZ), Biolase Technology, Inc. (BLTI), Caribou Coffee Company, Inc. (CBOU), Direxion Daily Emrg Mkts Bear 3X Shares (EDZ), Mitek Systems Inc. (MITK), Parexel International Corp. (PRXL), SodaStream International Ltd. (SODA), stmp, iPath S&P 500 VIX Short-Term Futures ETN (VXX).

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