Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Ominous Sell-Off

Stock-Markets / Stock Index Trading Apr 20, 2009 - 07:44 PM GMT

By: Harry_Boxer

Stock-Markets

The indices had a very sharp decline on Monday that may very well have reversed the entire 6 week uptrend. With the indices closing at the lows for the day and down sharply, led lower by the financials which had led the market up, it was a seemingly significant negative day on Wall Street.


The day started out with a big gap down on pre-market negative futures. After gapping lower, they went sharply lower after that. They managed to stabilize by mid-morning on the Nasdaq 100, although the S&P 500 continued to make lower lows all day. Eventually, in the afternoon, the NDX also set lower lows, and despite the fact that the NDX did bounce in the last half hour, the SPX after initially following rolled over hard and closed at the lows for the day going away.

Net on the day the Dow was down 289.60 to 7841, the S&P 500 down 37.21 to 832.39, and the Nasdaq 100 down 44.55 at 1309.37. The Philadelphia Semiconductor Index (SOXX) fell 6 percent, or14.62, to 240.19.

The technicals were extremely negative, with 300 up and 2800 down on advance-declines on New York and 454 and 2640 down on Nasdaq. Up/down volume was the story today, with about a 22 to 1 negative ratio on Nasdaq on total volume of more than 3 billion, and more than 27 to 1 negative on New York on total volume of close to 1 3/4 billion.

Needless to say, TheTechTrader.com board was extremely negative except for the ultrashorts, and a couple of our picks did very well today. Portfolio position DG FastChannel (DGIT) reached a new 6 1/2-month high at 21.72, closing at 21.35, up 73 cents. AgFeed Industries (FEED), also a portfolio position, after having tested 3 earlier in the session, closed at 3.64, up 34 cents, at the highs for the day going away on more than 4 million shares. Recent pick Dendreon (DNDN)jumped 1.53 to 19.52 on 17.7 million shares.

The ultrashorts obviously did very well today, with the UltraShort Financial ProShares (SKF) up 11.80 to 70.45, the UltraShort Real Estate ProShares (SRS) up 5.74 to 32.24, and the Direxion Large Cap Bear 3X Shares (BGZ) up 5.80 to 52.11. The Direxion Financial Bear 3x Shares (FAZ) had a stellar session, closing near the highs for the day at 11.63, up 2.73 on 234 million shares traded.

On the downside, the ultralongs got hammered, with the Direxion Financial Bull 3x Shares (FAS) down 2.82 to 6.58, and the Ultra Oil & Gas ProShares (DIG) 2.26 to 22.28, as oil dropped sharply. The iShares MSCI Brazil Index ETF (EWZ) dropped 2.47 to 41.39, and the Direxion Large Cap Bull 3X Shares (BGU) 3.82 to 25.82.

Goldman Sachs (GS) led the financials lower, down 5.59 to 115.01, just a penny off its low. JP Morgan (JPM) fell 3.57 to 29.69 on 109 million. Morgan Stanley (MS) dropped 1.48 to 23.52 on 45 million. Wells Fargo (WFC) closed near the lows for the day at 17, down 3.26 on 161 million. Bank of America (BAC) lost 2.58 to 8.02 on 193 million shares. Hartford Financial Services (HIG) also hammered at 9.11, down 2.07, on more than 19 million traded.
Other losses of note, Apple (AAPL) dropped 2.92 to 120.50, and Research in Motion (RIMM) 3.25 to 65.00. Mosaic (MOS) lost 2.85 to 39.33, Potash (POT) 3.37 to 86.40, and Agrium (AGU) 1.05 to 39.01.

Energy Conversion Devices (ENER) lost 1.56 to 14.26 in a weak solar sector, with SunPower (SPWR) down 2.20 to 24.25. Sequenom (SQNM) was down 1.45 to 14.82.

The shippers were hit hard, with DryShips (DRYS) down 90 cents to 6.27, and Excel Maritime (EXM) 1.04 to 6.50.

Stepping back and reviewing the hourly chart patterns, the indices gapped lower, took out the moving averages on the hourly charts, and kept going, with the S&P 500 closing right at its low for the day.

So, is this the trigger day that initiates a new downtrend and takes out the entire rising channel? We'll see if we get a downside follow-through, but today was an ominous session for the bulls.

Good trading!

Harry

For more of Harry Boxer, sign up for a FREE 15-Day Trial to his Real-Time Technical Trading Diary. Or sign up for a Free 30-Day Trial to his Top Charts of the Week service.

(c) 2009 AdviceTrade, Inc. All rights reserved. Distributed only by written permission of AdviceTrade and The Technical Trader at info@advicetrade.com . In using any portion of Harry Boxer's content, you agree to the terms and conditions governing the use of the service as described in our disclaimer at http://www.thetechtrader.com

Mr. Boxer's commentaries and index analysis represent his own opinions and should not be relied upon for purposes of effecting securities transactions or other investing strategies, nor should they be construed as an offer or solicitation of an offer to sell or buy any security. You should not interpret Mr. Boxer's opinions as constituting investment advice. Trades mentioned on the site are hypothetical, not actual, positions.

Harry Boxer Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in