Harry Boxer
The Technical Trader
The stock market indices were overbought and needed a pullback consolidation and that’s exactly what they got today. The day started out with a little pop to the upside, and within a minute they started to sell off in a perfect 5-wave decline on the Nasdaq 100, taking it from over 4210 at one point down to 4146 at the low. The S&P 500 dropped down from a high of 1930 to 1915. They bounced in the last ten minutes and closed not far off the lows.
Net on the day, the Dow was down 40.40 at 16,413.43. The S&P 500 was down 8.99 to 1983.83. The Nasdaq 100 was down 47.61 to 4151.49.
Advance-declines were 15 to 14 positive on the New York Stock Exchange, and 2 to 1 negative on Nasdaq. Up/down volume was 16 to 11 negative on New York, with total volume of 4.4 billion shares traded. The Nasdaq traded 1.9 billion shares and had a 2 to 1 negative volume ratio.
TheTechTrader.com board was mixed, although most of them were lower. Leading the way, Priceline.com (PCLN) had a follow-through day from yesterday’s spectacular move, up another 16.39 to 1251.95. That was it for the big boys. Google Inc. (GOOG) was down 11.05 to 697.35, Apple Inc. (AAPL) down 1.86 to 96.26, Amazon.com Inc. (AMZN) down 9.10 to 525.00, and Netflix, Inc. (NFLX) down 4.27 to 90.49.
Tesla Motors, Inc. (TSLA) lost 1.91 to 166.77, and Baidu, Inc. (BIDU) gave back 2.83 to 160.70. Facebook, Inc. (FB) dropped 1.73 to 103.47.
Intrexon Corporation (XON) pulled back 1.38 to 309.94, and NewLink Genetics Corporation (NLNK) fell 1.88 to 20.80.
Other gainers of note included Universal Display Corp. (OLED), one of our swing trades, up 2.52 to 48.54.
Checking the TheTechTrader.com percent-gain leaderboard, Lattice Semiconductor Corporation (LSCC) advanced 66 cents to 5.42, or 14%, on 8 million shares.
SunEdison Semiconductor Limited (SEMI) led the way today, up 1.89 to 5.57, or 51%, on 3.8 million shares traded, 1100% more volume than average. Teekay Corporation (TK) skyrocketed 1.11 to 7.80, or 17%, on 3 million shares traded. Brocade Communications Systems, Inc. (BRCD) climbed 1.16 to 9.68, or 14%, on 19 million shares traded.
Aerie Pharmaceuticals, Inc. (AERI) closed up 2.56 to 17.40, or 17%, on 5 million shares traded on positive drug news, 900% more volume that average. LDR Holding Corporation (LDRH) ran 3.15 to 22.11, or 17%, on 1.4 million shares traded. Rackspace Hosting, Inc. (RAX) bounced 2.45 to 21.16, or 12%, on 6 million shares traded. Outerwall Inc. (OUTR) ran up in the morning and stayed up all day to close at 33.70, up 3.41, or 11%. NVIDIA Corporation (NVDA), on earnings, gained 2.38 to 30.04, or 9%, on 24 million shares.
Gold was exceptional today, particularly the Direxion Daily Gold Miners Bull 3X ETF (NUGT), up 8.42 to 54.72, or 18%, on 12.4 million shares, reaching two points higher earlier in the day. The Direxion Daily Jr Gld Mnrs Bull 3X ETF (JNUG) did even better, up 11.50 to 63.06, or 22.3%, on 1 million shares.
The VelocityShares 3x Inv Natural Gas ETN (DGAZ) bounced 2.45 to 20.28, or 14%, on 5.8 million shares.
It was a good day across the board for most stocks.
Stepping back and reviewing the hourly chart patterns, after starting with a pop, the indices came down in a 5-wave decline all session, finishing near the lows for the day. Only a last 5-10 minute bounce prevented them from closing at the lows.
Let’s see what happens tomorrow.
Good Trading!
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