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Friday, October 1, 2010

Blue Chips Outperform in Mixed Session


 
The stock market indices ended mixed at the end of the day with better results on the New York Stock Exchange than on Nasdaq. The day started out with a gap up on both indices. They reached resistance, then sold off very sharply on economic news, with the Nasdaq 100 dropping from 2017 down to 1987, or 30 points. The S&P 500 at that point dropped from 1151 down to 1139, about 12 points.

The rest of the day was spent in stair-step fashion, moving up in what appeared on the hourly charts to be bear-flag type formations. In the last half hour they backed off a little bit to pare back the gains, leaving the NDX in the negative column.

Net of the day, the Dow was up 41.63 to 10,829.68. The S&P 500 was up 5.04 to 1146.24. The Nasdaq 100 was down 1.44 at 1996.60.

Advance-declines were 20 to 9 positive on the New York Stock Exchange, and less than 3 to 2 positive on Nasdaq. Up/down volume was 3 1/2 positive on New York with total volume of 1.5 billion traded. Nasdaq traded 1.9 billion shares today and had a 10 to 9 positive ratio.

TheTechTrader.com board was mixed but mostly higher. On the plus side, leading the way today was Golden Minerals Company (AUMN), the gold mining stock, up 4.47 to 20.00. Acacia Research Corporation (ACTG) advanced 3.05 to 20.65, and China Automotive Systems Inc. (CAAS) 1.50 to 16.78.

In addition, DemandTec, Inc. (DMAN) jumped 1.27 to 10.68, and Goldman Sachs (GS), which was strong all day along with several other banks, added 3.12 to 147.70. MedQuist Inc. (MEDQ) gained 2.35 to 11.11, Molycorp, Inc. (MCP) 1.29 to 29.58, Zhongpin, Inc. (HOGS) 1.23 to 17.52, and Northern Oil and Gas, Inc. (NOG) 1.03 to 17.97.

On the downside, point-plus losers included Amazon.com Inc. (AMZN), down 3.35 to 153.71. Apple Inc. (AAPL) lost 1.23 to 282.52, and Green Mountain Coffee Roasters Inc. (GMCR) 1.62 to 29.57.

Stepping back and reviewing the hourly chart patterns, the indices gapped up at the opening, ran to resistance and then rolled over hard, testing support successfully and then bouncing in a multi-wave move that ended up in a neat rising channel, but has the suspicious appearance of potentially a bear flag, which could lead to lower levels on Monday.

We’ll see how it goes then, but the market sure appears toppy up in this range.

Good Trading!

Harry

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