Harry Boxer
The Technical Trader
The stock market indices started off with a very negative down hit in a thrust that broke support. It was a key day for the indices, and it wasn't a good one. Trend lines, moving averages, and price support were all broken, with the indices closing near the low for the day going away. It was probably a trigger to move to lower levels.
Net on the day, the Dow was down 129.71 at 13,880.08, the S&P 500 was down 17.46 at 1495.71, and the Nasdaq 100 was down 48.28 at 2715.68.
So it was not a good day for the indices.
The day started out with a move down. A slight bounce back to resistance failed, and they came down hard, rolling over extremely hard for the Nasdaq 100. The S&P 500 dropped from 1506 to 1496, the Nasdaq 100 dropped all the way from 2756 to 2722. It did bounce around midday to try to consolidate, but they only rolled over again into the close to close near the session lows.
Advance-declines were 4 to 1 negative on the New York Stock Exchange, and 4 to 1 negative on Nasdaq as well. Up/down volume was almost 6 to 1 negative on New York, with total volume of 685 million shares. Nasdaq traded 1.75 billion and had a better than 4 to 1 negative volume ratio.
TheTechTrader.com board, as a result, was mixed today. Leading the way to the downside were the large-cap generals. Apple Inc. (Apple Inc. (AAPL) was down 11.30 to 442.32, Google Inc. (GOOG) down 16.58 759.02, Amazon Inc. (AMZN) down 5.02 to 259.98, International Business Machines Corporation (IBM) 1.39 to 203.79, and Priceline Inc. (PCLN) 6.27 to 679.29.
Netflix Inc. (NFLX), however, was one of the few standouts today, jumping 9.94 to 174.74, which helped the Nasdaq 100.
Uni-Pixel, Inc. (UNXL) had a big move earlier in the day, going from 13.40 to 15.85, but came all the way back down to 13.83, up 41 cents. So, a very negative reversal there.
Other stocks of note to the downside included Onyx Pharmaceuticals, Inc. (ONXX) down 2.32 to 76.97, NXP Semiconductors NV (NXPI) down 1.41 to 29.35, Pharmacyclics Inc. (PCYC) 1.01 to 69.82, SodaStream International Ltd. (SODA) 1.44 to 48.21, and Goldman Sachs Group, Inc. (GS) to 2.38 to 147.52.
Facebook, Inc. (FB) was down 1.62 to 28.11, Ellie Mae, Inc. (ELLI) down 1.35 to 19.60, and Perion Network Ltd (PERI) 1.00 to 9.23.
The Direxion Daily Small Cap Bull 3X Shares (TNA) gave back 2.84 to 75.64, and the Direxion Daily Financial Bull 3X Shares (FAS) lost 5.03 to 142.47.
On the other hand, ProShares Ultra VIX Short-Term Fut ETF (UVXY) jumped 1.46 to 12.10, only 2 cents off the high on 16.7 million shares. So that was a good day there on a two-week high.
It's not auguring well for markets. It could mean that we're going to go lower here. It sure looks like it.
There were also many advances on our board today and we traded several of them. Leading the way was Sequans Communications S.A. (SQNS), up 47 cents to 2.75, or 21%. Hyperion Therapeutics, Inc. (HPTX) jumped 2.80 to 18.81, but the high today was 23.47, a big reversal off the high from Fridays low at 14. This stock was up nearly 24 today, so it's not surprising to see the late profit taking.
BlackBerry (BBRY), owned by Research In Motion Limited (RIMM), had a bid day today, up 1.96 to 14.98, or 15%, on 78.2 million shares. Panasonic Corporation (PC) jumped 84 cents to 7.72, or 12%, on 1.3 million shares. BroadSoft, Inc. (BSFT), which we traded today, gained 3.58 to 38.56, or 10%, on 1.2 million shares. Caesars Entertainment Corporation (CZR) popped 90 cents to 8.71, or 11 1/2%, on 1.2 million shares.
Methode Electronics, Inc. (MEI) had a very interesting chart today. It opened just below the support line near 9.90, had a dip around noon, and then thrust up to around 10.90, closing at 10.68, up 82 cents. Bonanza Creek Energy, Inc. (BCEI) had a good day, up 1.10 to 31.85, Deckers Outdoor Corp. (DECK) up 1.47 to 41.39, Infinity Pharmaceuticals, Inc. (INFI) 1.38 to 35.50, and ServiceNow, Inc. (NOW) 89 cents to 28.96.
Stepping back and reviewing the hourly chart patterns, the indices had a negative day with a negative start and a negative finish, gapping down, bouncing, falling hard late morning, consolidating into the late afternoon, before it rolled over again after the rally attempt failed.
It was a very bad day for the indices, and a day we could look back on and say that was where the recent rally cracked and it was over.
Good Trading!
In using any portion of The Technical Trader, you agree to the Terms and Conditions governing the use of the service as described in this disclaimer. Our disclaimers, policies and terms are subject to change without notice. The Technical Trader (www.thetechtrader.com) is published by Century-Pacific Investments and AdviceTrade, Inc., both of which are publishers. The Web site is maintained by Codexia, LLC. None of these firms, nor Mr. Boxer, is registered as a broker-dealer or investment adviser either with the U.S. Securities and Exchange Commission or with any state securities authority. Each trade mentioned in the diary and other sections of The Technical Trader is hypothetical and is not an actual trade. Mr. Boxer and employees of Century-Pacific, AdviceTrade and Codexia are not allowed to have personal positions in stocks mentioned in the diary and other sections of The Technical Trader. This policy, first announced to subscribers on June 2, 2004, gave Mr. Boxer a deadline that was extended to July 30, 2004 for liquidating any existing personal holdings in stocks mentioned on the site. Our holdings page, in which Mr. Boxer listed his personal positions in stocks mentioned on the site, was removed at that time. The publishers are not permitted to have any financial relationship with companies mentioned on the site. Mr. Boxer may recommend trades of stocks mentioned in the Diary as a consultant to hedge funds, but has agreed not to make such recommendations until after the stock has been posted on The Technical Trader Web site. Mr. Boxer's commentaries, trading ideas and model trades represent his own opinions and should not be relied upon for purposes of effecting securities transactions or other investing strategies, nor should they be construed as an offer or solicitation of an offer to sell or buy any security. You should not interpret Mr. Boxer's opinions as constituting investment advice. Neither we nor Mr. Boxer claim to have any non-public information regarding the companies mentioned in this site. The trade prices that appear on this Web site are based on the average of the real-time bid and real-time ask prices provided by Money.net, except when entered manually by Mr. Boxer should Money.net's feed be temporarily down. There may be a delay between the price as it appears in the diary and the current price that you see from your terminal due to delays in Internet connectivity, quote delays, refresh intervals in the case of the Web-based diary page, data entry errors, and market conditions, and also due to times when Mr. Boxer is not available to make the trade at the moment a previously stated target has been met. Entries may at times be in error due to system or data-entry errors. Hypothetical performance results do not include trading commissions and other execution costs that would be incurred if the trades referenced in the diary or elsewhere on the site were actual trades. Past performance is no guarantee of future results.
Recommended Content
Editors’ Picks
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up. The pair traded at 0.6518.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: Slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.