Closing Technical Market Comments for Mon Oct 29, 2007
Technicals Lag in Quiet Up-Session
By Harry Boxer, The Technical Trader (www.thetechtrader.com)
We started the week with a positive session, although the technicals were somewhat suspect, particularly on Nasdaq, where advance-declines were just a few issues ahead despite the gains in the Composite and NDX. The day started out with a gap up. They then had a sharp pullback after some early extension of the gains. Support held, particularly on the S&P, and intraday moving average support held on both indices.
They bounced in the morning, consolidated late morning into the lunch hour, had an early afternoon run that saw the DNX reach yet another multi-year high, but the S&P failed to confirm and even reach a new session high. They backed off rather sharply mid-afternoon but held support and came on again before the close, and then backed and filled.
The Dow was up 63 1/2, the S&P 500 5.70, and the Nasdaq 100 up 8.83. The Philadelphia Semiconductor Index (SOXX) helped today, ahead 6.63.
Technicals were ahead by 550 issues on New York but by just 19 issues on Nasdaq. Up.down volume was 7 to 4 positive on New York on 1.2 billion traded. Nasdaq traded just under 2 billion, and had a 12 to 7 positive ratio.
TheTechTrader.com board was mostly higher with many multi-points gainers today. Leading the way was DryShips (DRYS), closing near 131, up 7 1/2 on 5 1/4 million shares and tagging a new all-time high today. TBSI, also in the shipping sector, up 2.81 to 68.25. Excel Maritime (EXM) touched 80 again, closing at 79.91, up 3.21 today.
Also in that sector, former Chart of the Week Navios Maritime Holdings (NM) closed at 18.78, up 1.62.
Other stocks of note, Blue Phoenix (BPHX), a stock we highlighted as a Chart of the Week several months ago around the 10 range, closed at 21.49, up 2.48 today to a new all-time high. One of our stocks to watch this week, Ascent Solar (ASTI), was up 1.72, or more than 10%, on 1 million shares. That was our Chart of the Day.
Other junior solar energy stocks also had an excellent day. CSUN was up 2.38 to 11.51. CSIQ jumped 1.11 today. Energy Conversion Devices (ENER), coming on strong of late, was up 1.07 to 28.22. Evergreen Solar (ESLR) advanced another 81 cents today.
Elsewhere, GIGM to a new multi-year high, was up 1.50 to 23.56. Sigma Designs (SIGM) tagged a new all-time high above 59, closing at 58.29, up 2.13. Sierra Wireless (SWIR), adding to Friday's sharp gains, was up 2.36 on 2.9 million.
The start of the day today was VMware (VMW) , closing over 120 for the first time ever. It is now up 300% in the last 4 months since its IPO, closing at 120.78, up 8.69.
China Medical Technologies (CMED) also advanced 2.31.
On the downside, Global Solutions (GSOL) gave back 1.15, Home Inns & Hotels (HMIN) down 1.86, and STV gave back 1.26.
Stepping back and reviewing the hourly chart patterns, we had a consolidation Monday as the indices gapped up, pulled back, and then meandered back and forth, tagging new multi-year highs on the Nasdaq 100 but failing to do so on the S&P by far.
However, the S&P had a nice consolidation pattern today, in a coiling, flag-type pattern, although I do expect the next couple days to be muted, perhaps narrow, ahead of the FOMC announcement on Wednesday.
Good trading!
Harry
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