The indices had an extremely negative post-election reaction, gapping down at
the opening, on pre-market futures being sharply lower. They then tried to
bounce, much more successfully on the S&P 500 and Dow, with the Nasdaq
unable to get through the intraday moving averages, and they rolled over sharply
in the morning, bounced in the afternoon, and then rolled over again even more
sharply late in the session. They had a late quick bounce, but in the last 10
minutes rolled over sharply once again to close at the lows for the day.
Net on the day the Dow was down 486, the S&P 500 down 53, and the Nasdaq
100 down 78 1/2. The Philadelphia Semiconductor Index (SOXX) dropped 11 1/2, or
about 5 1/2 percent.
The technicals were extremely negative, with advance-declines 25 to 6
negative on New York and 22 1/2 to 6 negative on Nasdaq. Up/down volume had very
negative ratios, though total volume itself wasn't heavy, with nearly 1 1/4
billion to the downside and only 75 million to the upside, or 15 to 1 negative,
on New York. Nasdaq traded about 2.15 billion and had a little less than 10 to 1
negative volume ratio .
Other than the short instruments, TheTechTrader.com board was extremely
negative, with just two stocks up very small fractions. QCOR, a recent portfolio
position, closed at 8.94, just 2 cents off the high and 6 cents off our $9
trading target. COIN at 6.38 was up a dime, although that was way off its high
of nearly 7.
The SDS at 85.74 was up 6.89, and the QID at 66.70 was up 6.32.
On the downside, the loss leader by far was SunPower (SPWR), which came out
with a poor earnings report and was downgraded by a couple firms, closing at
32.99, down 17.51, losing 35% of its value today on very heavy volume. POT at
86.88 was down 7.19, ANR at 29.41 down 6.27, AAPL at 103.30 down 7.69, the QLD
down 4.03, and the USO down 3.74.
The EWZ Brazilian ETF fell 4.58, and the DIG oil ETF was down 3.69.
Other multiple point losers included several financials, which got hammered
hard, including Citigroup (C) at 12.63 down 2.05 and Morgan Stanley (MS) at
17.06, down 1.81.
Energy Conversion Devices (ENER) dropped 2.77, DryShips (DRYS) 2, and
Canadian Solar (CSIQ) 1.87, so it was an extremely negative day for solars.
Airlines, too, got hit, with United (UAUA) down 1.02, and Continental (CAL) down
1.41.
Stepping back and reviewing the hourly chart patterns, the indices opened
lower, bounced, but pretty much stayed within a down-channel all session and
closed near the lows for the day going away in a very negative session and
obviously a negative reaction to the election.
So we'll see if this is the beginning of a major retest or another leg down
in a continuing bear market. Six up days in a row was about all the market could
take!
