Mon January 4th 2010
VERY Strong Start to Year by Harry Boxer,
www.TheTechTrader.comThe stock market indices started off 2010 with a bang, gapping up big at the opening, and then after a brief consolidation reaching the session highs early in the morning, tagging just under 1890 on the Nasdaq 100 and a tad under 1134 on the S&P 500. They did back off mid-day to test, but bounced mid-afternoon, retested again, and then bounced again late in the day.
Net on the day it was a very solid session, with the Dow up 155.91 at 10,583.96, the S&P 500 up 17.89 at 1132.99, and the Nasdaq 100 up 26.39 at 1886.70. The Philadelphia Semiconductor Index (SOXX) was up 6.17 to 366.08, a nearly 2 percent gain.
Advance-declines were positive by 25 to 6 on New York and 21 1/2 to 6 on Nasdaq. Up/down volume was about 7 to 1 positive on New York on light total volume of just over 1 billion. Nasdaq traded just under 1.9 billion and had about a 6 to 1 positive volume ratio.
TheTechTrader.com board was very active and mostly higher, with many point-plus gainers. Leading the way to the upside were the Chinese stocks, which had a monster session on some positive news out of China about strong economic growth. China Agritech (CAGC) was up 4.80 to 32.75, Telestone Technologies (TSTC) 2.41 to 22.25, SmartHeat (HEAT) 1.34 to 15.86, portfolio position Kandi (KNDI) 1.32 to 5.72 on all-time record volume of 1.8 million, Canadian Solar (CSIQ) 2.17 to 30.99, China Green Agriculture (CGA) 1.27 to 15.97, China Automotive (CAAS) 2.14 to 20.85, and AsiaInfo (ASIA) 94 cents to 31.94.
The Direxion Financial Bull 3x Shares (FAS) jumped 3.79 to 77.92 and Direxion Large Cap Bull 3X Shares (BGU) 2.59 to 55.20. The U.S. Oil Fund ETF (USO) gained 99 cents to 40.27 on stronger oil.
Other gainers of note, Brigham Exploration (BEXP) added 1.45 to 15, and portfolio position Sourcefire (FIRE) advanced 1.04 to 27.78.
Shippers were strong with Genko (GNK) leading the way, up 2.33 to 24.71. Hi-Tech Pharmaceuticals (HITK) rose 88 cents to 28.93, Revlon (REV) 90 cents to 17.91, and portfolio position Xyratex (XRTX) 90 cents to 14.21.
On the downside, there were just fractional losses, other than Rambus (RMBS), which got hit mid-day sharply lower and then rebounded all the way back as Nasdaq cancelled many of the trades at the lower levels today due to a technical error. That closed down 1.17 to 23.23. A-Power Energy (APWR) lost 45 cents to 17.84.
The ultrashort ETFs got hit, with the Direxion Financial Bear 3x Shares (FAZ) losing 99 cents to 18.44, Direxion Large Cap Bear 3X Shares (BGZ) 84 cents to 16.26, and the Direxion Small Cap 3x Bear (TZA) 79 cents to 9.07.
Stepping back and reviewing the hourly chart patterns,, it was a very strong start to the year for the indices, and a key breakout above resistance at 1130 SPX and 1881-82 on the NDX. The rest of the day was spent consolidating but in a very bullish manner.
We’ll see if that leads to more upside later in the week.
Good trading!
Harry
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