A bit of a hangover Monday at the moment. Given the insanity of college basketball over the weekend, not to underscore the big move over the last month, it doesn't appear to be much of a worry yet.
Still, a tough market to chase, but the bulls don't want to seem to quit and the bears have slunk back into hibernation for now. Still tough to chase, but those willing to do so have been rewarded. I would maintain smaller sizes here or tight trailers, given the size of the move over the last month, but nothing in the technical picture is broken yet for the bulls.
I've watched 3D Systems (DDD) continue a monstrous 66% move this year and have to wonder if it will finally spill over into a few other names.
The ExOne Company (XONE) tops my list right now as a potential secondary play. This one has been strong this year, up some 14.5%, but it looks like it might have room for some more here.
The stock has this very clear "W" pattern, although it also resembles a crown. A clear stop of $10.25 is what I can see, although a close under the 10-day simple moving average (SMA) of $11.14 would give me concern.
While the secondary indicators have made some lower highs, they appear to be moves related to price consolidation, rather than a sign of weakness. A close over $12.20, and this one should be set to see $14. I'm taking a half-sized position, as the overall market appears to be trying to bounce here today, and a name with a short interest in the mid 20% range along with a strong price pattern attracts my interest.
For those looking for a beaten-down, but well-known name potentially setting up on the long side, take a gander at FireEye (FEYE). A few years ago this was all the chatter, but with a 50% drop in the last six months, FEYE has disappeared from traders' radars.
Another sizable short name with 11.6% of the float on the short side of the table, FEYE may get some life here. Again, we see a similar technical picture, but I'm eyeing a potential cup and handle formation here.
The initial upside target is only a buck higher on resistance, but $2 higher for the cup and handle. I believe a realistic upside here is the $21-$22 area.
I would not want to be long under $17, but given the beaten-down nature of this stock plus a fairly robust options market, I think this is one name traders should put back on their radar.
For now, I'm only in XONE, but taking a much harder look at FEYE.