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Wednesday, September 29, 2010

Stock Snapback After Early Downside Thrust





 
The stock market indices were volatile today, but at the end of the day they finished higher.
The day started out with a big thrust to the downside, exacerbated by negative economic news from consumer sentiment. The Nasdaq 100 plunged down to 1980 and the S&P 500 down to 1132. A very sharp snapback rally ensued, taking the NDX from 1980 to 2114, and the SPX from 1132 to 1146. They then backed and filled by mid-day, went to new afternoon highs, pulled back sharply but held support, and then came on in the last hour.

Only a last five-minute, sharp pullback brought them off the session highs, with the S&P 500 tagging 1150 today, which was right at yesterday's high as well. There's a bit of potential double top there, but a break through to 1150 could spurt the indices even further. The Nasdaq 100 trails, although it was able to get back up towards the 2017.50 area, closing at 2012, but was unable to come near the 2026 high that it reached yesterday.

Net on the day, the Dow was up 46.10 at 10,858.14, the S&P 500 up 5.51 at 1147.67, and the Nasdaq 100 up 1.44 at 2012.43.

Advance-declines were nearly 3 to 1 positive on the New York Stock Exchange, and 2 to 1 positive on Nasdaq. Up/down volume was 3 1/2 to 1 positive on New York on total volume of right at 1 billion. Nasdaq traded just over 2 billion shares today and had about a 4 to 3 positive ratio.

TheTechTrader.com board was mostly higher today, although it was fairly mixed. There weren't many point-plus gainers, but we did have quite a few active issues traded.

On the plus side, LogMeIn, Inc. (LOGM) was up 1.02 to 38.39, reaching a new all-time high earlier in the day, and Cree Inc. (CREE) gained 1.45 to 53.31, probably on short covering. Focus Media Holding Ltd. (FMCN) advanced 85 cents to 23.55, and Ebix Inc. (EBIX), one of our swing trade picks, added 77 cents to 24.00.

Green Plains Renewable Energy, Inc. (GPRE) jumped 82 cents to 11.70, which we day traded today. USA Technologies Inc. (USAT) rose 17 cents to 1.30, Hyperdynamics Corporation (HDY) 51 cents to 2.49, a nice percentage gain there, and Rediff (REDF) 64 cents to 5.94.

Other stocks of note included Trina Solar Ltd. (TSL) up 51 cents to 27.50, swing trade pick VirnetX Holding Corp (VHC) up 50 cents to 13.79, Polypore International Inc. (PPO) 51 cents to 29.53, and McMoRan Exploration Co. (MMR) 36 cents to 16.51.

In addition, Isilon (ISLN) snapped back 61 cents to 22.71, Finisar Corp. (FNSR) 67 cents to 18.35, setting a multi-year high, and Acme Packet, Inc. (APKT) 44 cents to 39.83.

On the downside, First Solar (FSLR) lost 1.01 to 25.99, Goldman Sachs (GS) 99 cents to 145.01, JinkoSolar Holding Co., Ltd. (JKS) 75 cents to 29.45, Radware Ltd. (RDWR) 1.32 to 32.18, and Spreadtrum Communications Inc. (SPRD) 67 cents to 12.90.

Apple Inc. (AAPL) was the big loser today, however, down 4.30 to 286.86. At one point in the day it was 11 points lower than that, so it did come back quite a bit.

Stepping back and reviewing the hourly chart patterns, the indices were down sharply early, rallied sharply late morning, and then backed and filled the rest of the day, but surged in the last hour to close not far off the session highs.

A nice day for the bulls, but the bears had to be discouraged that after the early morning sharp drop, stocks continued to act resiliently.

Good Trading!

Harry

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