Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Nasdaq Gives Way in Mixed Session

Stock-Markets / Stock Markets 2010 Oct 07, 2010 - 05:21 AM GMT

By: Harry_Boxer

Stock-Markets

The stock market indices suffered losses today in the non-blue chip sectors as the Nasdaq 100 was down 18.11 at 2006.52. The S&P 500 ended up near-unchanged, down to 0.78 at 1159.97, and the Dow was up 22.93 at 10.967.65.

There was a distinct 3-wave decline today, as the indices dropped sharply in the morning, bounced mid-morning, and then dropped into early afternoon for the session lows near 1992 on the NDX and near 1155 on the SPX. At that point they worked their way back and took back some of the losses, but still ended up sloppy on the day.


Technicals bore that out, as there were 180 more decliners than advancers on the New York Stock Exchange. Up/down volume was 5 to 4 negative on New York on total volume of just 965 million shares today. The ratios were worse on Nasdaq, with advance-declines 3 to 2 negative and up/down volume about 2 to 1 negative on total volume of 2.1 billion shares.

Charts of the Day:

Today we review our Boxer Shorts, as many high-priced market leaders took it on the chin today, which may be a sign of an impending turn in the market.

Acme Packet, Inc. (APKT), a market darling and one of our Top 25 stocks, may be in the process of cracking here. It moved down last week, bounced mid-week this week, and today dropped 3.08, or 8%, on 2.5 million shares, the heaviest volume in more than two months. With the close right near lateral price support at the 50-day moving average, it could see a snapback, but next target is around 32 1/2-33 range. If that's broken, a major channel breaks, and we could get a move down toward the mid 20s, which is our eventual trading target.

F5 Networks, Inc. (FFIV) got hammered for 14 points today, from 109.80 down to 96.87, but even that was without the little opening gap. Net on the day it lost 12.48% on 7 1/2 million shares, which is heavy volume break to the downside. It took out the rising bottoms line over the last 3 1/2 months, and cracked the 21-day moving average. It's just above the 50-day, which it comes in at 93 1/2-94, and beneath that the target is around 85 and then 78 1/2.

Cree Inc. (CREE) has been heading downward ever since the early August smack. Over the last four weeks it's formed a kind of bear wedge or flag. The stock dropped 1.59 today, and if it cracks the channel bottom line here, we could see a quick hit down to the low- to mid-40s, our target for CREE.

Green Mountain Coffee Roasters Inc. (GMCR) got hammered earlier this week, formed a little bear flag in this range, and dropped 68 cents today. But a failure here could amount to a very quick hit down towards 25, my initial target. Secondary target down around 22.

Reviewing our Watchboard:

TheTechTrader.com board was mixed, but mostly lower. There were some outstanding gainers as well. TeleCommunication Systems Inc. (TSYS) jumped 1.15 to 4.88 today, one of the bigger percentage gainers. American Superconductor Corporation (AMSC) advanced 1.91 to 35.37. JA Solar Holdings Co., Ltd. (JASO) gained 65 to 8.95.

In addition, TPC Group Inc (TPCG), one of our Top 25 List members, was up 1.36 to 26.34, and another one on that list, Polypore International Inc. (PPO), was up 1.54 to 32.80.

Low-priced Alexco Resource Corporation (AXU) jumped 1.27 to 6.07, Polycom, Inc. (PLCM) 1.31 to 27.17, BioFuel Energy Corp. (BIOF) 43 cents to 2.83, and Patriot Coal Corporation (PCX) 76 cents to 13.25.

Other winners included Borders (BGP) up 31 cents to 1.58, and Broadwind Energy, Inc. (BWEN) 20 cents to 2.21.

In addition, Goldman Sachs (GS) gained 1.27 to 150.84, and Valassis Communications Inc. (VCI) jumped 88 cents to 35.02.

Other than that there were only fractional gainers on the board if they were up.

On the downside, Amazon.com Inc. (AMZN) lost 5.47 to 155.40, Acme Packet, Inc. (APKT) 3.08 to 34.90, Dendreon Corp. (DNDN) 2.29 to 38.93, Sourcefire, Inc. (FIRE) 2.24 to 26.66, Isilon Systems, Inc. (ISLN) 2.00 to 23.88, LogMeIn, Inc. (LOGM) 2.74 to 33.55, NetSuite Inc. (N) 2.43 to 21.46, and Radware Ltd. (RDWR) 2.73 to 31.80.

In addition, VirnetX Holding Corp (VHC) got hammered back from 20 to 15 today, closing at 15.99, down 2.56, a big negative reversal day there.

Stepping back and reviewing the hourly chart patterns, the indices dropped down in a 3-wave decline to mid-day, but then bounced back towards the end of the day, but still ended up mixed negative on the session. We'll see if today was a key day for the indices, but certainly with many of the market leaders in momentum stocks giving way today, it could be the beginning of a pullback starting here.

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) 2010 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