The long and short of two stocks. Here’s your trade on Abiomed (ABMD) and Hertz (HTZ). (September 27, 2016)
ABMD HTZ
I want to look at Abiomed ( NASDAQ:ABMD ) and also one other stock that is going the other way. First of all, I covered this yesterday in the Chart of the Day. The analysis was (you may want to go check out that video for some of my comments there), that this was a pullback on lower than average volume, after heavier than average volume a couple days here, and this was a real bullish sign, so go ahead and buy the stock. Today, the stock hit a new high; I think it is still okay to buy. If the stock pulls back a bit then I think you are good to go. The uptrend continues here, and if you made that trade I would suggest just hanging in there. Just hang on to it, let the stock work. It will probably oscillate a bit here and there, but you are going to be fine.
Now one other thing, Hertz ( NYSE:HTZ ). This stock is just about to fall through support here at $41.00. If it does you ABSOLUTELY don’t want to be long this stock. I wouldn’t want to be long this stock anyway, because it is coming out of a volatility squeeze on the downside. You may even consider shorting this stock. If you do just make sure you have a buy stop just in case you get a move the other way. I am not really inclined to be shorting things in this market because there is this underlying bid to the market. I don’t know of anybody who would, other than maybe some dedicated short seller who has a vested interest in the market going down. There are a LOT of folks with a vested interest in the market going up. So be careful about shorting stocks. But, if you are looking for one this is pretty good candidate.
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