Closing Analysis

Strong Day Technically Despite Late Pullback RSS

Closing Technical Market Analysis for Wed October 13th 2010

The stock market indices had a very strong morning, gapping up and running steadily into the early afternoon, reaching new 2010 highs at 2067 on the Nasdaq 100, 1184.4 on the S&P 500, and 11,155 on the Dow. But they sold off in the afternoon and pulled back into the close to pare back the gains.

Net on the day, the Dow was up 75.68 at 11,096.08. The S&P 500 was up 8.33 at 1178.10, about 6 points off its high, and the Nasdaq 100 up 15.70 at 2057.25, about 10 points off its high.

Advance-declines were more than 3 to 1 positive on the New York Stock Exchange and 2 1/2 to 1 positive on Nasdaq. Up/down volume was 3 1/2 to 1 positive on New York on total volume of 1.25 billion shares. Nasdaq traded over 2.3 billion shares and had a 2 1/2 to 1 positive ratio.

So, a strong day technically despite the late pullback. board was extremely active and very sharply higher today. Leading the way today by far was Chinese recruiting firm 51job Inc. (JOBS), up 7.61 to 45.87. Little Phazar Corp. (ANTP) gained 1.84 to 4.90, or 60% today, also strong. SIGA Technologies, Inc. (SIGA), on strong news from U.S. government contracts for small pox vaccine, advanced 3.91 to 12.47.

Other gainers of note, Motricity, Inc. (MOTR) was up 2.58 to 20, LDK Solar Co., Ltd. (LDK) up 1.20 to 12.35, China MediaExpress Holdings, Inc. (CCME) up 99 cents to 13.26, AirMedia Group Inc. (AMCN) 43 cents to 6.08, and Kandi Technologies Corp (KNDI) 56 cents to 5.79.

In addition, SMART Modular Technologies (SMOD) rose 78 cents to 7.30, Aixtron Aktiengesellschaft (AIXG) 3.09 to 31.78, Greenbrier Companies (GBX) 1.72 to 18.28, Gold Resource Corp (GORO) 98 cents to 24.35, DAQQ New Energy Corp. American (DQ) 66 cents to 12.71, Keryx Biopharmaceuticals Inc. (KERX) 40 cents to 5.47, and Myriad Genetics Inc. (MYGN) 1.27 to 19.93.

Cree Inc. (CREE) jumped 2.09 to 54.62, and Apple Inc. (AAPL) 1.60 to 300.14, closing over 300 for the first time in its history. Rightnow Technologies Inc. (RNOW) advanced 1.26 to 24.74, Trina Solar Ltd. (TSL) 1.15 to 30.73, and VirnetX Holding Corp (VHC) 1.31 to 17.50.

On the downside, Dendreon Corp. (DNDN) fell 1.31 to 38.46, Inc. (AMZN) 1.31 to 155.17, and MGM Resorts International (MGM) 1.51 to 12.10.

The ultrashort ETFs got hit, with the Direxion Daily Small Cap Bear 3X Shares (TZA) down 1.10 to 22. 50, and the Direxion Daily Emrg Mkts Bear 3X Shares (EDZ) 1.36 to 23.27

Stepping back and reviewing the hourly chart patterns, it was another strong rally that took the indices to new 2010 highs, only to sell off in the last couple hours to pare back the gains. Still, a positive gain for the indices and a nice follow-up to yesterday’s rally.

Good Trading!


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