Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
Dow Stock Market Short-term Trend Analysis - 15th Oct 19
The Many Aligning Signals in Gold - 15th Oct 19
Market Action Suggests Downside in Precious Metals - 15th Oct 19
US Major Stock Market Indexes Retest Critical Price Channel Resistance - 15th Oct 19
“Baghad Jerome” Powell Denies the Fed Is Using Financial Crisis Tools - 15th Oct 19
British Pound GBP Trend Analysis - 14th Oct 19
A Guide to Financing Your Next Car - 14th Oct 19
America's Ruling Class - Underestimating Them & Overestimating Us - 14th Oct 19
Stock Market Range Bound - 14th Oct 19
Gold, Silver Bonds - Inflation in the Offing? - 14th Oct 19
East-West Trade War: Never Take a Knife to a Gunfight - 14th Oct 19
Consider Precious Metals for Insurance First, Profit Second... - 14th Oct 19
Stock Market Dow Elliott Wave Analysis Forecast - 13th Oct 19
The Most Successful IPOs Have This One Thing in Common - 13th Oct 19
Precious Metals & Stock Market VIX Are Set To Launch Dramatically Higher - 13th Oct 19
Discovery Sport EGR Valve Gasket Problems - Land Rover Dealer Fix - 13th Oct 19
Stock Market US Presidential Cycle - Video - 12th Oct 19
Social Security Is Screwing Millennials - 12th Oct 19
Gold Gifts Traders With Another Rotation Below $1500 - 12th Oct 19
US Dollar Index Trend Analysis - 11th Oct 19
China Golden Week Sales Exceed Expectations - 11th Oct 19
Stock Market Short-term Consolidation Does Not change Secular Bullish Trend - 11th Oct 19
The Allure of Upswings in Silver Mining Stocks - 11th Oct 19
US Housing Market 2018-2019 and 2006-2007: Similarities & Differences - 11th Oct 19
Now Is the Time to Load Up on 5G Stocks - 11th Oct 19
Why the Law Can’t Protect Your Money - 11th Oct 19
Will Miami be the First U.S. Real Estate Bubble to Burst? - 11th Oct 19
How Online Casinos Maximise Profits - 11th Oct 19
3 Tips for Picking Junior Gold Stocks - 10th Oct 19
How Does Inflation Affect Exchange Rates? - 10th Oct 19
This Is the Best Time to Load Up on These 3 Value Stocks - 10th Oct 19
What Makes this Gold Market Rally Different From All Others - 10th Oct 19
Stock Market US Presidential Cycle - 9th Oct 19
The IPO Market Is Nowhere Near a Bubble - 9th Oct 19
US Stock Markets Trade Sideways – Waiting on News/Guidance  - 9th Oct 19
Amazon Selling Fake Hard Drives - 4tb WD Blue - How to Check Your Drive is Genuine  - 9th Oct 19
Whatever Happened to Philippines Debt Slavery?  - 9th Oct 19
Gold in the Negative Real Interest Rates Environment - 9th Oct 19
The Later United States Empire - 9th Oct 19
Gold It’s All About Real Interest Rates Not the US Dollar - 8th Oct 19
A Trump Impeachment Would Cause The Stock Market To Rally - 8th Oct 19
The Benefits of Applying for Online Loans - 8th Oct 19
Is There Life Left In Cannabis - 8th Oct 19
Yield Curve Inversion Current State - 7th Oct 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast Oct - Dec 2019 by Nadeem Walayat

Overbought Stock Market Yields to Profit-Taking

Stock-Markets / US Stock Markets Jan 05, 2009 - 06:13 PM GMT

By: Harry_Boxer

Stock-Markets The markets had a reasonable consolidation day, but ended lower on the session, due to profit-taking from a very overbought condition. Although at mid-day they did reach new rally highs, a pullback in the last couple hours pulled them back into negative territory.

The day started out with a gap down. They went lower and reached session lows early in the first half hour, rallied nicely and snapped back to retest the highs, but at that point went sideways in a multi-hour consolidation. They ended up breaking out after lunch hour and moved to the session highs, but pulled back the rest of the afternoon. Only a late last 20-30 minute snapback brought them back to pare the losses.

Net on the day the Dow was down nearly 82, the S&P 500 down 4 1/3, and the Nasdaq 100 1.18. The Philadelphia Semiconductor Index (SOXX) managed to gain 1.38 in a relatively stronger semiconductor sector.

Advance-declines were 2 to 1 positive on New York, but positive by just 245 issues on Nasdaq. Up/down volume was about 7 to 6 positive on New York on total volume of 1.3 billion, which is lighter than normal, but an increase over recent levels. Nasdaq traded a little more than 1.7 billion and was flat on up/down volume . board had an exceptionally strong day today. Leading the way were the agriculture stocks. Potash (POT) at 82.62 was up 5.27. Mosaic (MOS) gained 81 cents, CF Holdings (CF) 2.97, and Agrium (AGU) 99 cents.

Multiple-point gainers included Apple (AAPL), up 3.83. The U.S. Oil Fund ETF (USO) gained 1.67, and the iShares MSCI Brazil Index ETF (EWZ) was up 1.38 to 38.08. The Ultra Oil & Gas ProShares (DIG) gained 1.14, as would be expected with crude oil increasing.

Other stocks of note, Multi Fineline Electronix (MFLX) on an upgrade in earnings and upward guidance advanced 3.40 to 15.68 on less than half a million shares. SunPower (SPWR) at 44.15 was up 3.75 in a very firm solar sector. Canadian Solar (CSIQ) advanced 65 cents to 7.04.

Sequenom (SQNM), one of our portfolio positions, jumped to 3-month highs at 26.42, up 2.84 on 2 1/4 million, and Energy Conversion Devices (ENER) gained 1.58 to 29.38. Emergent BioSolutions (EBS), a portfolio position, snapped back 2 points off its earlier low, closing up 1.17 at 26.26.

DryShips (DRYS) had a spectacular session, reaching as high as 14.44, backing off late in the afternoon to close at 13.85, still up 1.36 on nearly 35 million shares today. Aerovironment (AVAV) jumped 1.12 and hit a new all-time high today at 39.73, and Aluminum Corp. of China (ACH) snapped back over 16 to close at 16.10, up 45 cents.

Stepping back and reviewing the hourly chart patterns as indicated earlier they were down early, rallied to new rally highs by mid-afternoon, and then pulled back at the end of the day to end negatively on the session. It was not too bad a sell-off considering the overbought condition of the market.

Good trading!


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) 2008 AdviceTrade, Inc. All rights reserved. Distributed only by written permission of AdviceTrade and The Technical Trader at . 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

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

© 2005-2019 - 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

6 Critical Money Making Rules