Harry Boxer
The Technical Trader
It was turn-around Tuesday as the indices reversed yesterday’s gains and had a solid sell off. The day started out with a gap down, they formed early bear wedges that created a 5-wave morning move, late morning and early afternoon they coiled, and then consolidated, trying to test support. On a couple of occasions they were successful, but in the afternoon they came down, bounced, went lower, and nearly closed at the lows for the day.
Net on the day, the Dow was down 188.88 at 16,431.78. The S&P 500 was down 24.23 to 1921.27, less than 2 points off the low. The Nasdaq 100 was down 68.73 to 4162.54, 4 points off its low.
Advance-declines were 2 to 1 negative on New York Stock Exchange, and 2 to 1 negative on Nasdaq. Up/down volume was nearly 4 to 1 negative on New York, total volume a light 3.8 billion shares traded. The Nasdaq traded 1 3/4 billion shares and had a more than 3 to 1 negative volume ratio, with declining volume over advancing volume.
TheTechTrader.com board was mostly negative. Priceline Inc. (PCLN) was down 26.53, Google Inc. (GOOG) down 10.61 to 695.86, Apple Inc. (AAPL) down 2.19 to 94.69, Amazon.com Inc. (AMZN) 6.56 to 552.94, Netflix, Inc. (NFLX) 2.81 to 89.12.
Tesla Motors, Inc. (TSLA) lost 53 cents to 177.21, after running up to 181.73 in the morning. Baidu, Inc. (BIDU) was also up in the morning to 167.42, before it rolled down 7.65 to 161.02.
Facebook, Inc. (FB) was down 1.70 to 105.46, First Solar, Inc. (FSLR) down 2.44 to 61.79, Bristol-Myers Squibb Company (BMY) down 1.63 to 62.07, Intra-Cellular Therapies, Inc. (ITCI) 2.50 to 30.06, and Microsoft Corporation (MSFT) 1.47 to 51.18.
To the upside, there were some outstanding stocks. Swift Transportation Company (SWFT), on an upgrade, was up 44 cents to 17.89, Rovi Corporation (ROVI) up 29 cents to 21.82, and Second Sight Medical Products, Inc. (EYES) up 1.50 to 6.70, or 29%, on 8.7 million shares on strong news about successful eye implants,
Checking the TheTechTrader.com percent-gain leaderboard, ZIOPHARM Oncology, Inc. (ZIOP) bounced 89 cents to 7.27, or 14%, on 4 million shares.
Rockwell Medical, Inc. (RMTI) jumped 1.64 to 9.51, or 21%, on nearly a million shares. Momo Inc. (MOMO), a day trade of ours, gained 1.98 to 12.00, or 20% on 6.9 million shares.
The VelocityShares 3x Inverse Crude Oil ETN (DWTI), in a very weak oil sector, stair-stepped its way up 34.00 to 270.50, or 14%, on 1.2 million shares. The ProShares UltraShort Bloomberg Crude Oil (SCO) climbed 13.97 to 178.71. The Direxion Daily Energy Bear 3X ETF (ERY) closed up 2.85 to 31.23, or 10%, on 1.5 million shares.
The Direxion Daily S&P Biotech Bear 3X ETF (LABD) advanced 8.80 to 74.61, or 13%.
Among other gainers, Rogers Corporation (ROG), on earnings, jumped 5.98 to 51.48, and Editas Medicine Inc. (EDIT) ran 1.00 to 22.62.
Stepping back and reviewing the hourly chart patterns, the indices gapped down at the opening, and then stair-stepped their way lower for most of the day, except for a midday consolidation. Net/net they closed at the session lows, and it was a complete reversal of yesterday’s close.
Let’s see what happens tomorrow.
Good Trading!
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