Closing Technical Market Analysis for Thu October 29th 2009
Thu October 29th 2009
Sharp Rally Reclaims Much of Recent Decline
by Harry Boxer, www.TheTechTrader.com
The market had a very strong snapback rally on Thursday from a deeply oversold condition. The day started with a gap up. They pulled back, tested the intraday moving averages successfully and then exploded to the upside. At that point they settled into a shallower angle of ascent, but nevertheless stair-stepped their way higher all day. They did pull back in the last hour, but in the last 10 minutes snapped back once again to close not far off the session highs.
Net on the day the Dow was up 199.89 at 9962.58, the S&P 500 up 23.48 at 1066.11, and the Nasdaq 100 up 29.21 at 711.27. The Philadelphia Semiconductor Index (SOXX) was up 3 percent, or 6.48, at 307.26.
Advance-declines were 5 to 1 positive on New York and about 2 1/2 to 1 positive on Nasdaq. Up/down volume was more than 8 to 1 positive on New York on total volume of nearly 1 1/2 billion. Nasdaq traded about 2.3 billion and had a better than 6 to 1 positive volume ratio.
As a result of today’s strong session, most stocks on TheTechTrader.com board were up, many of them sharply. Goldman Sachs (GS) led the way, up 6.42 to 178.58.
Among stocks we traded today, American Superconductor (AMSC) was up 6.50 to 35.34, Akamai (AKAM) 2.63 to 22.79, and Sourcefire (FIRE) 2.20 to 22.32.
Among other point-plus gainers, JP Morgan (JPM) advanced 1.67 to 44.35 and Wells Fargo (WFC) up 1.11 to 28.57 in the strong financial sector.
RINO International (RINO) snapped back with a vengeance, up 1.70 at 20.89. Human Genome Sciences (HGSI) on an upgrade was up 1.96 to 19.97. Dendreon (DNDN) in the rebounding biotech group was up 1.48 to 26.58. Jazz Pharmaceuticals (JAZZ) added 63 cents to 6.66.
Direxion Financial Bull 3x Shares (FAS) jumped 7.87 to 77.35, the Direxion Large Cap Bull 3X Shares (BGU)) 3.05 to 51.48, and the Direxion Daily Small Cap Bull 3x Shares (TNA) 2.16 to 39.42.
U.S. Oil Fund ETF (USO) was up 1.44 to 40.90 as oil firmed again. Brigham Exploration (BEXP) in a strong junior oil sector was up 83 cents to 10.25.
China Automotive (CAAS) advanced 86 cents to 10.88, China Green Agriculture (CGA) 86 cents as well to 11.26, China TransInfo (CTFO) 43 cents to 7.89, Telestone Technologies (TSTC) 48 cents to 8.87 and Westport Innovations (WPRT) 82 cents at 10.16, all in the strong rebounding Chinese sector today.
On the downside, the Direxion Financial Bear 3x Shares (FAZ) down 2.54 to 20.39, the Direxion Large Cap Bear 3X Shares (BGZ) 1.44 to 20.61, UltraShort Real Estate ProShares (SRS) 92 cents to 9.95 and the Direxion Small Cap 3x Bear (TZA) 89 cents to 13.17.
Stepping back and reviewing the hourly chart patterns, it was up at the get-go and then strongly higher early on before settling into a shallower angle of ascent, but a steep one nonetheless. It was a very strong session today as the indices took back a large portion of their declines of the last few sessions.
Good trading!
Harry
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