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Closing Technical Market Analysis for Mon August 8th 2011
The stock market indices had a very bad start to the week as the stocks plunged today from the get-go on gaps down, rallied back, and then went lower. They did manage to have a mid-morning rally that rolled over hard and went to even lower lows, and sharply so, by mid-afternoon. When the indices got to extreme negative tick numbers and were very oversold, they did have a bounce-back rally that moved up strongly to resistance, with the NDX in the afternoon rallying from the 2061-62 zone up to 2112, about 40 points straight up, as did the S&P 500, rallying more than 30 points. However, when the resistance was hit with about an hour to go, and when they couldn’t break through, they rolled over hard into the close and closed at the Nasdaq 100’s low for the day.
Net on the day the Dow was down 634.76 at 10,809.85, the S&P 500 down 79.92 to 1119.46, just pennies above its low, and Nasdaq 100 down 134.09 to 2060.29.
Advance-declines were 46 up and 3113 down on New York Stock Exchange. Up/down volume was about 100 to 1 negative, with 25 million up and 2.5 billion down, something you don’t see too often. Advance-declines on Nasdaq were 122 up and 2590 down, and up/down volume was 26.5 million up and 4 billion down.
That was about as bad a day that I’ve ever seen in my 40 years of experience on Wall Street.
TheTechTrader.com board was sharply lower, and every single stock on our board that was not an ultra-short went down today. Leading the way today, Apple Inc. (AAPL) was down 20.41 to 353.21. Goldman Sachs (GS) lost 7.52 to 117.66, and traded more than 5 points lower this morning. Molycorp, Inc. (MCP) lost 7.82 to 46.33, SodaStream International Ltd. (SODA) was down 7.19 to 63.12, Travelzoo Inc. (TZOO) dropped 9.07 to 39.69, and VirnetX Holding Corp (VHC) got crushed, down 6.23 to 15.93.
In addition, LSB Industries Inc. (LXU) was down 3.95 to 31.07, Coffee Holding Co.Inc. (JVA) 3.96 to 14.49, InterDigital, Inc. (IDCC) 4.12 to 63.98, and Brigham Exploration Co. (BEXP) 4.24 to 22.71.
It was not a pretty sight today.
On the upside, the ultra-shorts flew. The Direxion Daily Financial Bear 3X Shares (FAZ) was up 17.36, closing at 79.73 up from 65.02, on 46 million, or 28%. The Direxion Daily Small Cap Bear 3X Shares (TZA) was up 13.27 to 64.27, or 26%, on 33 million. The Direxion Daily Large Cap Bear 3X Shares (BGZ) jumped 9.16 to 54.48, or 20%, on nearly 8 million. The iPath S&P 500 VIX Short-Term Futures ETN (VXX) was also up, 4.47 to 34.78, or 15%, on 143 million traded. Even the ProShares UltraShort DJ-UBS Crude Oil (SCO), was up today, 8.43 to 65.59, or 15%, on nearly 2.5 million.
It was a phenomenal day on Wall Street today for the ultra-shorts. We’ll see what kind of downside follow-through, or reversal, we get tomorrow.
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