Technical Trader Closing Brief
8
0
Positive End to Very Negative Week
Mon, Nov 24 2008, 06:17 GMT
by Harry Boxer
The markets astounded investors with a late very sharp rally that exploded into the close with a huge gain today. After backing and filling and making new multi-year lows on the Nasdaq 100 and S&P 500, they retested in the afternoon, and when they failed to take out the lows substantially and follow through to the downside, they turned them around with abandon and rallied 600 points in the last hour to close up 494 on the Dow. The S&P 500 rallied from 741 to 801, closing at 800, up 47 1/2. The Nasdaq 100 rallied from 1019 to 1085 and closed right at the high for the day going away, up 49 points. The Philadelphia Semiconductor Index (SOXX) jumped from 167 to 180, closing right there, up 8.90.
The technicals were positive with advance-declines ahead by 2 to 1 on New York and 3 to 2 on Nasdaq. Up/down volume was 1.9 billion to the upside and less than half a billion on the downside on New York. Nasdaq had a 5 to 1 positive volume ratio.
So a very solid day, most of it coming in the last hour. Leading the way were some of the ETF instruments. The ERX, the 3x bull energy ETF, at 36.23 was up 9.13. The DIG, another long oil ETF, was up 4.88 today on the turnaround in oil.
Also very strong were the agriculture stocks today, with CF up 7.29, POT up 4.96, AGU up 3.16, and MOS 2.63.
Recent Chart of the Day RIMM gained 3.28 to 44.80 on heavy volume of 31-plus million, and ENER snapped back from 18 1/2 to 21 and change, closing right there, up 2.50. Former portfolio position AVAV at 32.41 was up 3.33, AAPL jumped 2.09, and the FXI ETF gained 3.30. The EWZ Brazilian ETF gained 2.47 and the BGU up 2.71.
On the downside, ultra short instruments got hammered. The BGZ reversed 30 points to close down 19 on the day at 102.29, the QID was down 12 points off its high at 90.12, down 8.49, and the SDS dropped 15.03 to 112.94.
So it was a very positive session with a last-hour rally that took them substantially off very oversold conditions, with climactic-type levels on volume and advance-declines yesterday and early this morning.
So, I'm not surprised we got the late rally, although it was options expiration day and anything could have happened. But the bulls took control late in the session and closed them with a bang in a very positive end to an extremely negative week.
Published on Mon, Nov 24 2008, 06:17 GMT
Archive
- Very Weak Day on the Street
Published On Thu, Jan 8 2009, 06:14 GMT - Overbought Market Yields to Profit-Taking
Published On Tue, Jan 6 2009, 07:39 GMT - Markets Still Waiting for Santa Claus Rally
Published On Wed, Dec 24 2008, 09:58 GMT - Late Snapback Pares Losses
Published On Tue, Dec 23 2008, 05:59 GMT - Morning Consolidation Rolls Over Hard in Afternoon
Published On Fri, Dec 19 2008, 05:53 GMT
AdviceTrade, Inc.
| 3007 Washington Blvd., Suite 220-C, Marina del Rey, CA 90292
http://www.thetechtrader.com/ | info@thetechtrader.com
Legal disclaimer and risk disclosure
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.Related reports
Why Non-Farm Payrolls Could Rebound in December by GFT (Global Forex Trading)
Thu, Jan 8 2009, 17:27 GMT
One year Outlook for JPY - Dollar/Yen moves in the second half of last year were a bit bigger than we had expected by Mizuho Corporate Bank
Thu, Jan 8 2009, 16:14 GMT
Daily Technical Strategist - EURUSD: Rejection Candle Triggers Recovery by FXTechstrategy
Thu, Jan 8 2009, 14:53 GMT
Daily Market Report - The Bank of England cut rates today by 50 basis points, to 1.50% by Wachovia
Thu, Jan 8 2009, 13:10 GMT
Currency Majors Technical Analysis by Mataf.net
Thu, Jan 8 2009, 12:41 GMT
eurusd, eurjpy, chfjpy, nasdaq, gbpusd, usdchf, stocks, gbpjpy, dowjones, usdjpy
View AllRelated content
CANADA STOCKS-TSX closes up 1.1 pct as golds shine
Thomson Financial News | Thu, Jan 8 2009, 22:48 GMT
US STOCKS-Market flat as stimulus hopes offset Wal-Mart
Thomson Financial News | Thu, Jan 8 2009, 16:42 GMT
S.Africa stocks slide, rand off 2-wk low vs dlr
Thomson Financial News | Thu, Jan 8 2009, 16:29 GMT
CURRENCIES: Sterling Up After Expected Bank Of England Rate Cut
Dow Jones | Thu, Jan 8 2009, 16:14 GMT
US STOCKS-Nasdaq turns up on Microsoft; but Wal-Mart off
Thomson Financial News | Thu, Jan 8 2009, 16:12 GMT
eurusd, eurjpy, chfjpy, nasdaq, gbpusd, usdchf, stocks, gbpjpy, dowjones, usdjpy
View All
Interested in forex trading? forex brokerage firms!
FXstreet.com will give you a 3 months membership as soon as minimum rebates have been generated (€150 for private trader/ €300 for corporate trader)
[Read Premium full description]
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
©2008 "FXstreet.com. The Forex Market" All Rights Reserved.