Though the market's inched higher this week, its rising tide is no longer lifting all boats equally. In other words, now's the time to start hand-picking what look to be the best of the best trading opportunities. Universal Display Corp. (PANL), Spectrum Pharmaceuticals, Inc. (SPPI), Ruby Tuesday, Inc. (RT), and GENova Biotherapeutics Inc. (GVBP.OB) are four good ones to think about at this point. Take a look.
How's this for a non-committal hedge?......
Ruby Tuesday, Inc. (
RT) could be close to a massive breakout out, or a complete breakdown. OK, we're not being elusive - we're just trying to fairly explain what's going on with the chart.
The bullish potential lies in the upside-down head-and-shoulders pattern we've seen form since the beginning of 2008 for Ruby Tuesday. The so-called neckline is between $8.80 and $9.20. If it fails to hold RT shares down, there's a lot of room for recovery here.
The flipside is the potential bearish breakdown that Ruby Tuesday shares have not yet escaped. A couple of support lines are framing the make/break line for RT, the lowest of which is at $6.547 right now (and rising).
Yep, Ruby Tuesday is definitely one you want on your watchlist.
This look at
GENova Biotherapeutics Inc. (
GVBP) isn't so much a new trading idea as much as it is a lesson learned.
Back on September 14th we suggested GENova Biotherapeutics had peaked. Oh, the momentum was great, and the stock was going nuts... the chart just gave us all the tell-tale signs of a top. As it turns out, we were two days early - RT didn't peak until the 16th, but it did indeed peak and reverse as described in the warning that day (after a major outside reversal).
Though the stock was halted a few days later, the resumption of trading in GENova Biotherapeutics took the stock right back to the August lows.... where the whole mess started.
Lesson learned though GVBP? The major reversal bars are great clues, and past support and resistance levels are frequently future support and resistance. At this point, GENova is actually a speculative 'buy' again.
----------------------------------------------------------------------
Sign-up for Free to Receive Future Commentary and
Trading Alerts on GVBP, PANL, SPPI, and RT.----------------------------------------------------------------------
Yesterday's high-volume surge from
Universal Display Corp. (
PANL) didn't actually seal the deal, but it got the stock within striking distance of a breakout.... again.
The chart of Universal Display below is pretty clear. There are a couple of rising support lines, and one big horizontal resistance line. The result is a wedge shape that's getting close to its tip - PANL will have to break one edge or the other.
While both outcomes remain possible, we view the higher-odds outcome is the bullish breakout move from Universal Display Corp. shares. Don't think pre-emptively here though; wait for PANL to move above $12.88 (and perhaps confirm it or build a base there) before piling in. There's plenty of room for the stock to run once above that ceiling.
And finally, if there was anybody left who though
Spectrum Pharmaceuticals, Inc. (
SPPI) shares might recover from the move to the $6-ish area before things got any worse, don't get your hopes up.
Our last look at SPPI was from September 25th, when we pointed out the stock had fallen under a key Fibonacci retracement line (38.2%), and it looked like the $4.75 mark was in its sights. Since then, that 38.2% Fib line has acted as resistance for Spectrum Pharmaceuticals shares. That's not going to help the stock's bullish case.
Bottom line... we still feel Spectrum Pharmaceuticals is going to retest the second Fibonacci retracememt line at $4.75 before rebounding. If for some reason SPPI does move back above $6.83 before that happens though, we won't view that as a bullish hint; there's still a rising support line (blue) in play.
If you'd like to know of any changes in our opinion of RT, GVBP, SPPI, or PANL (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered 2 to 3 times per week.
