Market Vulnerable? Go Short and Go Long

NEW YORK (TheStreet) -- The market is vulnerable here. So today we're going to look at a couple of shorts in addition to longs.

On the long side, China XD Plastics (CXDC) exploded on Wednesday, up 85 cents, or 17.6%, to $5.74 on 1.6 million shares. That's unprecedented volume for the stock, breaking it above the double-top in the $5.50 area from October and November. (On Thursday at 3:45 p.m., the stock had cooled down to $5.30.)

Looking at the longer-term chart, the stock has formed a major base going back three years, which may have been taken out. But the stock needs to follow through above Wednesday's high at $5.90 to get it up to our next target at $7.25.

Keryx Biopharmaceuticals (KERX) has been in a rising channel, which followed its big spike up in January 2013 and then the multi-month consolidation. The stock in recent months has stair-stepped up its channel in a series of small corrections, or falling wedges, and then breakouts. On Wednesday it had a big spike-up out of its most recent correction, up 2.45, or 17%, to $16.54 on 16.4 million shares. That's the second highest close the stock has seen since 2006. There's key resistance up around $19.00, which is the next potential target going forward.

Keryx continued it charge ahead Thursday, and at 3:45 p.m. it was at $16.84.

On the short side, Barrett Business Services (BBSI) has come down hard in recent months. It initially bounced at around the $60 level, but then rolled over. On Wednesday it cracked that support zone, falling $2.39 to $59.06. On Thursday at 3:45 p.m. the stock was at $59.44. Looking for this stock to move quickly down toward $49. 

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