Harry Boxer
The Technical Trader
The stock market started off the year with a huge thud. The day started out with huge gaps down as international markets are down sharply, China down 7-8 points, international tensions between Saudi Arabia and Iran, and other bad news around the globe. Oil prices did move up a little bit, but the indices plunged at the get-go, taking the Dow, S&P 500, and Nasdaq 100 down very sharply early on. They tried a 3-wave corrective rally by midday, and then pulled back to retest, but when those lows held, they actually made higher lows. In the last thirty minutes, the market staged an explosive, short-covering-type rally, taking the NDX all the way back for 4447 to 4497, 50 points in half an hour. The S&P 500 jumped from 1994 to 2013, nearly 20 points, and then they had a very, very sharp move at the highs for the rally going away at the close.
Net on the day, the Dow was down 276.09 at 17,148.94, 190 points off the lows. The S&P 500 was down 31.28 to 2012.66, 23 points off its low. The Nasdaq 100 was down 95.41 to 4497.86, but looked a lot worse earlier when it dropped down to 4439, a 58-point rally off the lows.
Advance-declines were worse than 2 to 1 negative on New York Stock Exchange and 22 to 6 1/2 negative on Nasdaq. Up/down volume was nearly 3 to 1 negative on New York, and traded 4.2 billion shares. Nasdaq traded 2 1/2 billion shares and had a 3 1/2 to 1 negative volume ratio.
TheTechTrader.com board was mostly lower today. Priceline Inc. (PCLN) was down 29.58 to 1245.37, 17 points off its low, Google Inc. (GOOG) closed 10 points off its low, down 17.04 to 741.84, Amazon.com Inc. (AMZN) dropped to 9 points off its low, down 38.90 to 636.99, and Netflix, Inc. (NFLX) down 4.42 to 109.96, 4 1/2 points off its low.
Tesla Motors, Inc. (TSLA) lost 16.60 to 223.41, and Baidu, Inc. (BIDU) dropped 5.01 to 184.00. Facebook, Inc. (FB) gave back 2.44 to 102.22, 2 1/2 points off its low.
Biotech's had a hard session. Prothena Corporation plc (PRTA) was down 5.89 to 62.22, and NewLink Genetics Corporation (NLNK) down 1.66 to 34.73, The Direxion Daily S&P Biotech Bull 3X ETF (LABU) fell 2.08 to 19.02.
Bristol-Myers Squibb Company (BMY) lost 1.76 to 67.03.
On the upside, there were a lot of stocks way off the lows, but very few that were in the plus column today. Apple Inc. (AAPL) managed to go from 102.00 to 105.37, only 2 cents off the high, up 9 cents to 105.35.
There were a lot of comebacks today. The market sure gave a good account of itself, especially in the last half hour, but, still, net-net, when you look at the overall pattern, it was a very sharp drop, followed by a couple rallies, a retest, and late explosive move.
Checking the TheTechTrader.com percent-gain leaderboard, SunEdison, Inc. (SUNE) gradually climbed 66 cents to 5.75, or 13%, on 50 million shares.
Low-priced General Steel Holdings, Inc. (GSI) popped 1.41 to 2.74, or 106%, on 1.5 million shares. Trading was halted in the morning, and then reopened. 3D Systems Corporation (DDD), which had gone from nearly 100 in Jan, 2014, to as low as a recent low of 8.69, ran 1.14 to 9.83, or 13%, on 7.6 million shares, and traded as high as 10.15 earlier in the day.
Nautilus Inc. (NLS) had a good day, up 1.76 to 18.48, or 11%.
The ProShares Ultra VIX Short-Term Futures (UVXY) jumped 3.61 to 31.96, or 13%, on 42.3 million shares, and trading as high as 34.84.
Stepping back and reviewing the hourly chart patterns, basically they plunged at the opening, came down in a 5-wave decline, spiking down to 4440 NDX, and 1990 S&P 500 before rallying midday, pulling back late in the day, and exploding into the close
Let's see what happens tomorrow.
Good Trading!
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