Day Trading with Hary Boxer

Ugly Day on the Street
by Harry Boxer, TheTechTrader.com

The stock market indices suffered sharp losses to end the week as resistance in the morning became quite obvious, and the indices rolled over confirming that the down trend is in place.

The day started out as they dropped sharply in the morning, bounced around for several hours, formed a wedge, and broke in the last hour, closing at the lows for the day going away.

Net on the day, the Dow was down 136.91 at 12,849.67, the S&P 500 down 17.31 at 1370.26, and the Nasdaq 100 was under 2700, down 41.27 at 2698.99.

Advance-declines were more than 3 to 1 negative on the New York Stock Exchange and 4 to 1 negative on Nasdaq. Up/down volume was more than 6 to 1 negative on New York, total volume 750 million. Nasdaq traded under 1.5 billion shares and had a 6 to 1 negative volume ratio.

It was certainly an ugly day on Wall Street today.

TheTechTrader.com board was mixed. There were quite a few winners, but a lot of low-priced stocks that rallied in the morning got slam-dunked for the day and gave back a lot of the gains. However, Good Times Restaurants Inc. (GTIM) was up 97 cents to 2.07, or 88%, on 2.1 million shares, and at one point in the day traded 3.34. Fonar Corp. (FONR) jumped 40 cents to 3.78, or 11.8%. iGATE Corporation (IGTE) was a winner for us today, up 1.98 to 19.15, or 11.5%, on 1.3 million shares.

In addition, ProShares Ultra VIX Short-Term Fut ETF (UVXY), which we traded today, gained 1.69 to 18.59, or 10%, on 6.5 million shares. VelocityShares Daily 2x VIX ST ETN (TVIX) jumped 51 cents to 8.53. The Direxion Daily Financial Bear 3X Shares (FAZ) took back 1.27 to 22.73.

Other gainers of note included Coinstar, Inc. (CSTR) was up 4.47 to 65.78, but closed well off the high as it gapped up sharply on earnings report. Cheniere Energy, Inc. (LNG), one of our favorites, which we traded today, jumped another 1.16 to 16.86, on 17 million shares. Anika Therapeutics Inc. (ANIK) was a big winner, up 1.08 to 15.80. Arabian American Development Company (ARSD) jumped 77 cents to 10.32. Annie’s, Inc. (BNNY) ran up 2.29 to 43.29. Mattress Firm Holding Corp. (MFRM) was up another 2.00 to 44.57. SodaStream International Ltd. (SODA) jumped 1.03 to 35.62.

On the downside, leading the way was Apple Inc. (AAPL) fell 17.54 to 605.23, with a high of 624, closing 19 points off the high. Goldman Sachs (GS) contributed to the financials’ loss, down 5.30 to 115.09. Cobalt International Energy, Inc. (CIE) was down 1.19 to 28.38.

Ultra-long Direxion Daily Financial Bull 3X Shares (FAS) got slammed big time, down 6.20 to 97.17, and the Direxion Daily Small Cap Bull 3X Shares (TNA) dropped 2.31 to 54.84.

Stepping back and reviewing the hourly chart patterns, the indices came down hard in the morning, bounced mid-day, consolidated, formed wedges, and rolled over into the close at the session lows.

It was an ugly day for the indices and a poor way to close the week.

Good Trading!

Harry