Tuesday Evening

Tuesday Afternoon

ES (Sep) 15min

The bulls have been defending the 1300ish level since last night... and have pushed out of the high volume zone from yesterday marked in red. The 1308ish level is being tested as I'm typing this... and so far it appears the bulls are trying to hold it and the bears are drying up.

Tuesday Morning

FIO Weekly Chart

FIO Daily Chart

Fusion-io has been a disappointment to say the least.  Since late April the stock price has dropped about 40% and nearly 60% since hitting it's all-time high in November.  It has only closed twice (9/21-22) below Monday's last trade of 17.61.  It still has a lofty P/E of 55 based on forward estimates and the last daily candle was a bearish engulfing beauty.  Not a pretty picture.  Analyst estimates range from 20 to 35 so everyone is wrong so far.

On Monday FIO announced they now have CSCO as a customer.  That list also includes ORCL, HPQ, IBM, DELL, AAPL, SMCI, FB, SAP, RHT and CTXS among others. 

The short interest is nearly 20% and on average trading it would take more than 5 days to cover.  I can't say it's a buy right here right now but it sure is tempting.  I'll be keeping it on my screen and a green candle is about all it will take for me to dip a toe with a tight stop.

(Short interest information is from Finviz.)