The indices were up on the day, but a very disappointing finish, as in the
last hour they sold off and took back a big chunk of the gains.
The day did start out with a gap up. They tried to rally but rolled over and
took the S&P 500 to new session lows, but failed to take out last week's
low, despite the fact that the Nasdaq 100 did. Then they stair-stepped their way
up in a five-way rally that took the indices to new session highs late in the
afternoon. In the last hour or so they rolled over after formidable overhead
resistance failed to get penetrated.
Net on the day the Dow was up a little more than 38, the S&P 500 7 1/2,
and the Nasdaq 100 16 1/2. The Philadelphia Semiconductor Index (SOXX) was up a
little more than 2 1/2.
So a positive day in general, but a less than desirable close.
Advance-declines were positive by 17 to 14 on New York and by 16 to 12 on
Nasdaq. Up/down volume was 8 to 7 positive on New York on total volume of 1 1/2
billion. Nasdaq traded 2.3 billion and had a ratio of about 14 to 9 positive on
advancing over declining volume.
TheTechTrader.com board was very mixed, but there were some very strong
rebounds today in stocks that got hammered recently. Energy Conversion Devices
(ENER), which lost a big chunk yesterday, gained back 4.57 to 57.62 on 3.5
million. DryShips (DRYS) gained 2.58 and Excel Maritime (EXM) 1.81. Fuel Systems
Solutions (FSYS) gained 3.44, and VISN snapped back 1.12. Canadian Solar (CSIQ),
which reached all the way down to near 20 this morning, closed at 23.01, up
1.67, a nice reversal there.
Portfolio position Converted Organics (COIN) jumped 90 cents to 7.30 and
reached just a penny off our original trading target of 7.50, reaching as high
as 7.49 today. Brigham Exploration (BEXP) in the junior oil sector was up 90
cents as well. Sigma Designs (SIGM) snapped back 62 cents, Solarfun (SOLF) 67
cents, and portfolio position Greatbatch (GB) was up 23 cents.
Among our recent Charts of the Week, TACT was up 65 cents, TWP up 61 cents,
and XSI up 54 cents to 7.91.
On the downside, the DUG on the rebound in oil dropped 3.36 on 31 million
shares, and Sequenom (SQNM) continued its recent pullback, closing at 19.32,
down 1.32.
Stepping back and reviewing the hourly chart patterns, the indices did rally
back in a 5-wave fashion but it looked corrective, and all that it managed to do
was test the declining moving averages on the hourly charts and lateral price
resistance and back off from there. Until we get a thrust back up through those
levels, the trend is still down and we may see lower levels. I remain
unconvinced that today's rally was meaningful.
