Three Short-Term Volatility Plays

A potentially volatile and profitable combination for a stock is large short interest and price contraction near key resistance. It sets up a platform for the classic squeeze rally, and today I have three potential candidates for this short-term volatility play.

The stock price of the data-storage device manufacturer Fusion-io (FIO) gapped up in August, taking out its 200-day moving average, and continued higher over the next two months. The drop-off that began in October took it back down through the 200- and 50-day moving averages and closed the gap in mid-November. The stock has been trading in a horizontal channel for the last two months, with the channel top currently marked by the nexus of the resistance line and the 50- and 200-day moving averages....288 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.