New Lows for the Stocks Bear Market!

Stock-Markets / Stocks Bear Market Mar 05, 2009 - 09:05 PM GMT

It was an extremely negative session and close for the market indices today. The day started out with a gap down, followed by an attempt to bounce early on. They rolled over and went lower all morning, backed and filled mid-day, rolled over in the afternoon again, made lower lows, and had a late sharp rally that just couldn't hold. That was followed by a drop to new lows for the entire move on the S&P 500 and Dow.

Net on the day, the Dow closed under 6600 to 6594.44, down 281.40 today. The S&P 500 fell 30.32 to close at 682.55, and the Nasdaq 100, which got as low as 1072.51, equaling Tuesday's lows, but holding them closed down 35.78 to 1074.52, just a couple points away from the session lows. The Philadelphia Semiconductor Index (SOXX) fell 3.02.

Advance-declines were near negative extremes with 237 issues up and nearly 2900 down on New York and 440 to 2357 on Nasdaq. Up/down volume was 121 million up and 1 3/4 billon down on New York, and 179 million up and 2.1 billion down on Nasdaq.

TheTechTrader.com board as a result was extremely negative. Only the ultrashort ETFs had a big day. The Direxion Financial Bear 3x Shares (FAZ) exploded to as high as our trading target in the 104-05 zone, reaching 104.17, and closed at 99.50, up 19.51 on nearly 19 million shares. The SRS ultrashort real estate ETF gained 10.38 to 97.80 and the Direxion Large Cap Bear 3X Shares (BGZ) tacked on 11.74 to 110.26.

There were a few fractional gainers. Sigma Designs (SIGM) ran up to 15.88 and closed at 15.03, up 82 cents on 3 million shares after a very strong earnings report.

Portfolio position Starent Networks (STAR) exploded to as high as 17.01 today, closing at 16.58, up 87 cents on nearly 3 million, excellent relative strength there. Portfolio position DG FastChannel (DGIT) gained 14 cents to 15.65.

But other than that, most stocks were down on the day and sharply so. Leading the way to the downside was Potash (POT), off 5.14 to 69.49. Mosaic (MOS) fell 1.79 to 40.09, and Agrium (AGU) was down 1.40 to 32.57 in a weak Ag sector.

Apple (AAPL) lost 2.33 to 88.84. Energy Conversion Devices (ENER) got hammered to 17.53, down 2.47, and Boxer Short Express Scripts (ESRX) was down another 2.81 to 44.62.

JP Morgan (JPM) in a very weak financial sector was down 2.70 to 16.60, Morgan Stanley (MS) at 17.98 down 1.42, Bank of America (BAC) was down 42 cents to 3.17, and Wells Fargo (WFC) was down 1.54 to 8.12.

The Direxion Financial Bull 3x Shares (FAS) got crushed for 97 cents on 292 million shares. It got as low as 2.56 an all time low, and closed at 2.75.

The U.S. Oil Fund ETF (USO) backed off 1.05 to 26.56 on lower oil today, as did the Ultra Oil & Gas ProShares (DIG) at 17.75 down 1.76.

SunPower (SPWR) at 23.88 was down 2.67, Sequenom (SQNM) lost 55 cents to 12.98, Net 1 Ueps Technologies (UEPS) gave back 67 cents to 12.66, and Hartford Financial Services (HIG) at 4.13 fell 1.01 today. General Electric (GE) closed at 6.66, down only 3 cents on 444 million shares.

Stepping back and reviewing the hourly chart patterns, the indices did more technical damage today, after yesterday's rally failed right at the declining tops lines and moving averages, setting up further declines today. The indices closed at new 12-year lows on the S&P 500 and Dow, and the Nasdaq 100 equaled last week's lows, and though not yet confirming is on the verge of doing so tomorrow. With tomorrow's unemployment report it promises to be an interesting session.

Good trading!

Harry

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