CARBO Ceramics Inc. (NYSE:CRR) dropped sharply today before having a mega reversal. The stock hit a low of $47.01 before reversing the sharp losses and going positive. It just hit a high of $53.96. This is a major reversal and comes after hitting a new 52 week low. When a stock reverses off major losses at a 52 week low, it is often a signal of a major bottom. Heads up to traders and investors looking for a potential long opportunity.
Just a couple months ago, Janet Yellen issued a warning that biotechnology may be in a bubble. Today, the iShares NASDAQ Biotechnology Index (ETF) (NASDAQ:IBB) are 20% higher. While Janet Yellen was wrong at the time, we should all remember that Alan Greenspan issued the same warning on Dot.com companies in the late 1990's. He was early on that call but ultimately right. [more]
This morning, the leading social networking stocks are coming under some heavy distribution. The catalyst for today's decline in the social networking stocks comes after the poor market reaction to the Facebook Inc (NASDAQ:FB) earnings that were released last night. In sympathy to the decline in Facebook Inc stock you will also see weakness in Twitter Inc (NYSE:TWTR), and LinkedIn Corp (NYSE:LNKD).
A way that traders can play the social networking sector is by using the Global X Media Index ETF Funds (NYSEARCA:SOCL). According to the weekly chart of SOCL it appears that the leading social networking stocks are likely to trade lower in the near term. It seems that the SOCL will have chart support around the $16.50 area. This was the level where the SOCL was defended by the institutional money back in May 2014. Often, old pivot areas will serve as solid support when retested. Either way, traders should expect a further pullback in the near term in the social networking stocks.
The iShares Dow Jones Transport. Avg. (ETF) (NYSEARCA:IYT) ran firmly into double top today. This is an epic bounce of $20 in less than two weeks. The chart is short term overbought and should see a pull back. Markets will be closely watching the FOMC Policy Statement tomorrow. This will be the driving force behind the next major move in the markets. Near term bias on the iShares Dow Jones Transport. Avg. (ETF) (NYSEARCA:IYT) is negative.
Gareth Soloway [more]
In the last few weeks there has been quite a lot of movement in shares of Chimerix Inc (NASDAQ:CMRX). This company reportedly had a drug that would help fight the nasty Ebola virus. Once the market caught wind of this, Chimerix Inc (NASDAQ:CMRX) shot up nearly 50% in a few trading sessions. Since making a high of $36.75 the share price has dropped about 20% as the Ebola fears subsided and traders/investors took profits. So where is the stock of Chimerix Inc (NASDAQ:CMRX) headed? I have isolated two very good support levels at $25.75 and $22.75. These price targets should provide a substantial amount of support as these were the breakout levels and there are also some proprietary calculations which point to these numbers. My advice to those who wish to buy this company is to initiate a position at the first price level and then add at the lower level if it continues to sell off. This is a very volatile stock, so keep your position small and look to be rewarded in a big way. [more]