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Yesterday Ends With Bang At the Highs




By Harry Boxer, The Technical Trader


The stock market indices had a very interesting day, to say the least, for both the S&P 500 and Nasdaq 100.

The day started out with a negative outlook as futures were lower and indices gapped down slightly, taking out short-term support. They bounced back, backed and filled, and by midday they retested, making nominal new lows for the session on the S&P 500, but Nasdaq 100 held up despite the fact that Apple Inc. (AAPL) was getting hammered. Google Inc. (GOOG), Priceline Inc. (PCLN), and Amazon Inc. (AMZN) had an excellent day today. In the afternoon, when the indices held support, they started rallying in a 5-wave advance that spiked up to new rally highs on the NDX and S&P 500. The S&P 500 at 1525 is just 6 points below last month’s 5 1/2-year high. The NDX was up against key-overhead resistance in the 2580 area, which is neckline of a possible inverse head-and-shoulder pattern. Both the S&P 500 and NDX have similar patterns and both at the neckline. So a follow-through here could be very explosive, but a failure could really rollover hard. This could be a key point in the entire trend for both of the major indices.

Net on the day, the Dow was up 38.16 at 14,127.82, 100 points off the low and less than a point off the high. The S&P 500 was up 7.00 at 1525.20, just 7 cents off the high and 13 points off the low. The Nasdaq 100 was up 11.78 at 2759.53, just pennies off the low, and 25 points off the low.

Advance-declines were almost 17 to 13 positive on the New York Stock Exchange, and 13 to 11 positive on Nasdaq. Up/down volume was 3 to 2 positive on New York, with total volume of 683 million shares. Nasdaq traded nearly 1 2/3 billion and had a 5 to 3 positive volume ratio.

It was a nominally positive day, but ended with a bang at the highs for the day. A positive way to start the week. board was mostly positive. Leading the way today was Google Inc. (GOOG), up 15.31 to 821.50, reaching 822.84, new all-time highs today. Priceline Inc. (PCLN) also spiked up to 714.01, up 18.39, not far off the high for the day, and very close to an all-time high. Amazon Inc. (AMZN) popped 7.37 to 273.11, just pennies off its high for the day.

International Business Machines Corporation (IBM) jumped 2.28 to 205.19, and Goldman Sachs Group, Inc. (GS) spiked 1.65 to 152.18.

Apple Inc. (AAPL), however, was down 10.42 to 420.05, just a point of the low, and acting relatively poor right now.

In addition, Aegerion Pharmaceuticals, Inc. (AEGR), one of our favorite biotech stocks, was up 1.21 to 32.52, Onyx Pharmaceuticals, Inc. (ONXX) up 1.91 to 77.16, Pharmacyclics Inc. (PCYC) 2.37 to 91.41, Uni-Pixel, Inc. (UNXL), also one of our favorites, up 1.94 to 23.91, on 1 million shares, and not far off the high for the day.

Sarepta Therapeutics, Inc. (SRPT) was all over the place, up 48 cents to 30.07, but was as high as 30.92 and as low as 28.35.

On leader board, MBIA Inc. (MBI) was leading the way, up 2.47 to 12.78, nor 24%, on 28 million shares. China HGS Real Estate Inc. (HGSH) advanced 1.00 to 5.41, up 22.7%. MGIC Investment Corp. (MTG) popped 39 cents to 4.18, or 10%, on 45 million shares. Boyd Gaming Corp. (BYD) climbed 93 cents to 7.39, or 14%, on 10 million shares.

Institutional Financial Markets, Inc. (IFMI) zig-zagged its way up 23 cents to 2.86, or 9%. TearLab Corporation (TEAR) gained 45 cents to 6.21, or 8%. Cerus Corporation (CERS) advanced 29 cents to 3.95, or 8%, on 1 million shares.

Workday, Inc. (WDAY) was up 4.10 to 61.72, on 1.7 million shares. NQ Mobile Inc. (NQ), which we traded today, gained 1.17 to 8.07, or 17%, on 1.9 million shares. Theravance Inc. (THRX) gained 3.37 to 24.29, or 16%, on 4.6 million shares, and we issued as swing trade on it today. NetSol Technologies, Inc. (NTWK) advanced 1.01 to 12.45, or 8%. American Vanguard Corp. (AVD) closed up 2.47 to 31.10, or 8%. Isis Pharmaceuticals, Inc. (ISIS) ran 1.27 to 16.58, or 8%, on 3 million shares. Stratasys Inc. (SSYS) spiked up to 72.69, closing up 4.56 to 68.82.

In a strong junior biotech group, Tesaro, Inc. (TSRO) was up 2.44 to 24.24, or 11%. Albany Molecular Research Inc. (AMRI) gained 70 cents to 8.70, or 9%, on 1 million shares. Anika Therapeutics Inc. (ANIK) climbed 1.10 to 14.13, or 8%.

Stepping back and reviewing the hourly chart patterns, the indices opened lower, stabilized, rallied by midmorning, but backed off to retest the lows on Nasdaq 100 despite the nominal new lows intraday at 1512, or so, on the S&P 500. The NDX held at 2736, and they both rallied in a 5-wave advance in the afternoon to close near the highs for the day going away.

It was a good start to the week. We’ll see how it goes on tomorrow.

Good Trading!



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