Market Overview

2 Long Ideas And 2 Short Ideas Based On Technical Analysis

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Technology and biotech populate our long picks today, while retailers round out the short side as we also look for short-term downside plays.

Advanced Micro Devices, Inc. (NASDAQ: AMD) had a great day on Wednesday after reporting a narrower-than-expected loss for the fourth quarter and revenue that also topped estimates. The stock popped $1.69, or 16 percent, to $12.06, on a massive 165 million shares traded, closing near the high for the day. The move broke the stock out cleanly across the declining tops line and out of its month-long wedge. Watch for a test of the late December high at $12.42. A move through there could get the stock headed towards the channel top at around $15-$16 next.

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Cara Therapeutics Inc. (NASDAQ: CARA), a cannabis-based biotech, has been steadily climbing since the start of the year. On Wednesday the stock popped $1.17, or 7.6 percent, to $16.49 on 4.7 million shares, which is huge volume for this stock, the biggest since mid-November. The stock got as high as $17.20 intraday before pulling back into the close. It is a bit extended near the top of its channel and could pullback and consolidate before its next move, but momentum could carry it a bit further towards $18.

On the short side, Carter's, Inc. (NYSE: CRI) continues lower since its July 2016 top above $112. On Wednesday, shares in the childrenswear retailer were down another $1.05, or 1.25 percent, to $82.70, on 690,100 shares traded. The stock appears headed towards the bottom of its declining channel in the $73-$74 range.

Signet Jewelers Ltd. (NYSE: SIG) is also continuing lower. The stock rallied from the bottom of its declining price channel to the top in the last quarter of 2016, but has since broken down. Shares fell another $0.66 to $77.01 on 1.5 million shares traded on Wednesday. Watch for a test of the late September low in the $72-$73 range. A takeout of that could drop the stock near its channel bottom in the low-to-mid $60's.

See Harry's video chart analysis on these and other stocks.

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