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Wednesday, October 6, 2010

Nasdaq Gives Way in Mixed Session





 
The stock market indices suffered losses today in the non-blue chip sectors as the Nasdaq 100 was down 18.11 at 2006.52. The S&P 500 ended up near-unchanged, down to 0.78 at 1159.97, and the Dow was up 22.93 at 10.967.65.

There was a distinct 3-wave decline today, as the indices dropped sharply in the morning, bounced mid-morning, and then dropped into early afternoon for the session lows near 1992 on the NDX and near 1155 on the SPX. At that point they worked their way back and took back some of the losses, but still ended up sloppy on the day.

Technicals bore that out, as there were 180 more decliners than advancers on the New York Stock Exchange. Up/down volume was 5 to 4 negative on New York on total volume of just 965 million shares today. The ratios were worse on Nasdaq, with advance-declines 3 to 2 negative and up/down volume about 2 to 1 negative on total volume of 2.1 billion shares.

TheTechTrader.com board was mixed, but mostly lower. There were some outstanding gainers as well. TeleCommunication Systems Inc. (TSYS) jumped 1.15 to 4.88 today, one of the bigger percentage gainers. American Superconductor Corporation (AMSC) advanced 1.91 to 35.37. JA Solar Holdings Co., Ltd. (JASO) gained 65 to 8.95.

In addition, TPC Group Inc (TPCG), one of our Top 25 List members, was up 1.36 to 26.34, and another one on that list, Polypore International Inc. (PPO), was up 1.54 to 32.80.

Low-priced Alexco Resource Corporation (AXU) jumped 1.27 to 6.07, Polycom, Inc. (PLCM) 1.31 to 27.17, BioFuel Energy Corp. (BIOF) 43 cents to 2.83, and Patriot Coal Corporation (PCX) 76 cents to 13.25.

Other winners included Borders (BGP) up 31 cents to 1.58, and Broadwind Energy, Inc. (BWEN) 20 cents to 2.21.

In addition, Goldman Sachs (GS) gained 1.27 to 150.84, and Valassis Communications Inc. (VCI) jumped 88 cents to 35.02.

Other than that there were only fractional gainers on the board if they were up.

On the downside, Amazon.com Inc. (AMZN) lost 5.47 to 155.40, Acme Packet, Inc. (APKT) 3.08 to 34.90, Dendreon Corp. (DNDN) 2.29 to 38.93, Sourcefire, Inc. (FIRE) 2.24 to 26.66, Isilon Systems, Inc. (ISLN) 2.00 to 23.88, LogMeIn, Inc. (LOGM) 2.74 to 33.55, NetSuite Inc. (N) 2.43 to 21.46, and Radware Ltd. (RDWR) 2.73 to 31.80.

In addition, VirnetX Holding Corp (VHC) got hammered back from 20 to 15 today, closing at 15.99, down 2.56, a big negative reversal day there.

Stepping back and reviewing the hourly chart patterns, the indices dropped down in a 3-wave decline to mid-day, but then bounced back towards the end of the day, but still ended up mixed negative on the session. We’ll see if today was a key day for the indices, but certainly with many of the market leaders in momentum stocks giving way today,, it could be the beginning of a pullback starting here.

Good Trading!

Harry

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