Today we cover two longs and two shorts for playing this volatile market.
On the long side, MaxLinear (MXL) - Get Report had a big snapback day on Wednesday, up $2.11, or 16%, to $15.60 on 2.8 million shares. That's the biggest volume since early November and second biggest since June. The maker of RF and mixed-signal circuits said it sees fourth-quarter revenues near the high end of guidance, above estimates, and first-quarter revenue above consensus. The move broke the stock out of a month-long declining channel. The longer-term rising channel points to a target of 20.
The ProShares UltraShort Bloomberg Crude Oil (SCO) - Get Report is also very strong. After the head-and-shoulder bottom in October, and the platform or flag in November, it exploded through $100, and ran up to the $147 area. It backed off to $123.70, but rallied for $13.31, or 9.4%, on Wednesday to $154.50 on 629,000 shares traded. It reached as high as $156.15 intraday, a new all-time high, and looks like it's going to run up another $10-to-$15 before it gets into a pullback mode.
On the short side, Comfort Systems USA (FIX) - Get Report recently broke down from a rising channel. It formed a slightly rising bear flag late last month, but has broken down through that as well. It was down only a small fraction on Wednesday, off 23 cents to $27.61, on 6.4 million shares. The targets remain $25.50, which is the low from September 28, and then $22.
Middleby (MIDD) - Get Report is a new stock that we discovered that looks pretty bearish. It broke down from a rising channel in August, but bounced back up to resistance and failed several times. It recently has been in a rising bearish wedge, which it broke down from in the last several sessions. On Wednesday the maker of food service equipment fell $6.17 to $101.75 on no news and is right up against key lateral support. A break here at about $101 could take the stock to the low $90s or even mid $80s short-term.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.