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Thursday, December 16, 2010

Sloppy Downside Session



The stock market indices had a sloppy downside day today after morning strength that tested resistance and failed. The indices then pulled back in a 5-wave decline, reaching the session lows with about an hour to go. They then bounced, but with about 15 minutes to go backed off into the negative column.

Net on the day, the Dow closed down slightly by 19.07 to 11,457.47. The S&P 500 fell 6.36 to 1235.23, around 9 points off its high. The Nasdaq 100 was down 10.14 at 2202.45, about 21 points off its high.

Advance-declines were almost 2 to 1 negative on the New York Stock Exchange and about 8 to 5 negative on Nasdaq. Up/down volume was 3 1/2 to 1 negative on New York with a little less than 1.1 billion shares traded. Nasdaq traded 1.84 billion and had a little less than a 2 1/2 to 1 negative ratio.

While the market was mostly negative today, there were quite a few stocks up on TheTechTrader.com board. Leading the way today was Youku.com Inc. (YOKU) snapping back from recent big pullback, up 3.58 to 33.30. Ctrip.com International Ltd. (CTRP) advanced 3.08 to 41.72. Molycorp, Inc. (MCP) in a very strong rare earth group was up 3.21 to 37.00, and also in that group China Shen Zhou Mining & Resources, Inc. (SHZ) gained 37 cents to 4.62 and Rare Element Resources Ltd. (REE) 41 cents to 9.62.

Other multiple-point gainers included Cyberonics Inc. (CYBX) up 2.72 to 32.63, Finisar Corp. (FNSR) 1.90 to 27.04, Regeneron Pharmaceuticals, Inc. (REGN) 1.14 to 31.75, Valeant Pharmaceuticals International (VRX) 1.13 to 30.28, and Exelixis, Inc. (EXEL) jumped 1.01 to 8.22, a big gain today for that stock. Skilled Healthcare Group, Inc. (SKH) jumped 91 cents to 7.91, Sigma Designs, Inc. (SIGM) 40 cents to 13.79, and Brigham Exploration Co. (BEXP) 58 cents to 27.31, reaching over 28 but backing off.

In addition, Amarin Corporation plc (AMRN) was up 36 cents to 6.28. Akorn Inc. (AKRX) had a big percentage gain, up 71 cents to 6.04. China Biologic Products, Inc. (CBPO) rose 1.33 to 16.94, BSQUARE Corp. (BSQR) 1.03 to 7.97, Synta Pharmaceuticals Corp. (SNTA) 43 cents to 5.95, Cardica Inc. (CRDC) 57 cents to 3.84, Ryder System, Inc. (R) 2.21 to 49.25, and EDAP TMS SA (EDAP) 41 cents to 4.81.

Jazz Pharmaceuticals, Inc. (JAZZ) was up 65 cents to 18.61, LivePerson Inc. (LPSN) 75 cents to 10.86, Power-One Inc. (PWER) 41 cents to 10.91, ViroPharma 57 cents to 17.43, Telular Corp. (WRLS) 46 cents to 6.69, SIGA Technologies, Inc. (SIGA) 66 cents to 13.51, and Alumina Ltd. (AWC) 37 cents to 9.41.

Those were among the substantial gainers on our board today.

On the downside, point-plus losers include Goldman Sachs (GS) down 2.12 to 165.21, and Motricity, Inc. (MOTR), which continues to get hammered off its highs, down 2.92 to 18.36.

Those were the multiple-point losers on our board today.

On the short side, the ETF Direxion Daily Emrg Mkts Bear 3X Shares (EDZ) was up 1.01 to 22.89, and the iPath S&P 500 VIX Short-Term Futures ETN (VXX) 89 cents to 39.79.

Stepping back and reviewing the hourly chart patterns, the indices were up sharply in the morning, came down very hard to new lows for the pullbacks, and then bounced in the last hour only to pullback again in the last 15 minutes to leave them in the negative column for the day. With negative technicals confirming today’s down day, perhaps the current move can extend to the downside

We’ll see if support at today’s lows holds around 2196-97 on the NDX and 1234 on the S&P 500. Those are levels to watch.

Good Trading!

Harry

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