BGZ, FAZ, NU, SNCR Among Charts to Watch

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It was certainly a slam dunk day on Wall Street on Tuesday. It’s also very oversold and a lot of the Boxer Shorts have gotten hammered. We were going to take a look at those, but they’re in such oversold condition that we’re going to take a look at the longs instead, and prepare for what could be a snapback rally at some point as well as a few ultra-shorts.

Ultra-short ETF Direxion Daily Large Cap Bear 3X Shares (BGZ) has come way down from the mid 90s, as recent as a year ago, to the low 30s, bounced sharply toward the 40 area, came down again to the low 30s, triple bottoming before a resounding snapback surge on the last six or seven sessions has taken it from about 32 to nearly 40 at 39.72, closing just a penny off its high. It will be interesting to see whether the market can follow through. This move was accompanied by very heavy volume and a sharp surge in technicals that could lead to a breakout and a run to the low 40s short-term. It could stall late and back off, so keep an eye on this one.

Ultra-short ETF Direxion Daily Financial Bear 3X Shares (FAZ) broke out on Tuesday, up 4.00, or 8%, on nearly 18 million shares. That’s the heaviest volume in a couple months. It went through a double top in June and a band of resistance, and looks like the lateral price resistance that lasted eight or nine months is broken and there’s a new high here. If the market does continue, it could spike up to the high 50s, maybe low 60s short-term, but it could also back off right at this point. This is a key point for the market and a lot of the ultra-shorts.

Nu Skin Enterprises Inc. (NUS) was up 3.19 on Tuesday, reaching a high of 41, and closing at 40.54, or 8 1/2%, on 2.4 million shares traded. That’s the biggest volume since early May when it spiked and started to get that increase moving. There could still be more upside to this stock. If it gets through the Tuesday high at 41, it could reach the 43 – 45 zone very quickly.

Synchronoss Technologies, Inc. (SNCR) was probably the best mover on Tuesday, up 6.30, or 22%, on 2.5 million shares traded. This was by far the biggest volume since February, and one of the biggest volumes in the last 52 weeks. The declining topsline was taken out on Tuesday, but the lateral price resistance was not. It actually approached the lateral price resistance and backed off. If it moves through 36, this stock could very quickly move up toward the 40 range short-term and the mid 40s on an intermediate basis.

Other stocks in our Charts for the Day are Asia Entertainment & Resources Ltd. (AERL), Akorn, Inc. (AKRX), Arcos Dorados Holdings Inc. Cla (ARCO), Interphase Corp. (INPH), Imperial Sugar Co. (IPSU), Mitek Systems Inc. (MITK), Direxion Daily Small Cap Bear 3X Shares (TZA), ZAGG Incorporated (ZAGG).