Closing Analysis

Indices Finish with Big October

Closing Technical Market Analysis for Fri October 28th 2011

The stock market indices managed to rally in the afternoon in a 5-wave affair off the morning double-bottom, and close with positive gains on the day, and with one of the biggest Octobers in history.

The day started out, however, with a sharp move down. They bounced sharply to resistance at 2400 on the Nasdaq 100 and up near 1285-86 on the S&P 500. They then came down hard to support near 2385 NDX and 1277 SPX, but then bounced again back to those 2400 and 1286 areas. They couldn’t get through, rolled over to retest, and held successfully. From that point, midday, they rallied in a 5-wave advance to set new session highs at 2405 NDX and 1287 on the S&P 500, only to pullback in the last five minutes to pare back just a little of the gains.

Net on the day, the Dow was up only 22.56 today, but closed at 12,231.11, about 75 points off its low. The S&P 500 was up 0.50 at 1285.09, about 8 points off its low, and the Nasdaq 100 up 1.46 at 2401.29, 17 points off its low.

Advance-declines, however, were nearly flat, just slightly to the downside on the New York Stock Exchange, and about 300 issues lower on Nasdaq. Up/down volume was also nearly flat on New York, but slightly to the upside. So, it was kind of a flat day technically for New York. Nasdaq traded 2.8 billion shares and had a 5 to 4 positive volume ratio.

So, it was a mixed picture today, but the indices pretty much digested yesterday’s sharp gains without too much damage at all. As a matter of fact, they had no damage at the end. board was mixed. Leading the way, Inc. (STMP) was a monster, up 6.82 to 32.73. Vistaprint N.V. (VPRT) advanced 3.61 to 35.25, and Align Technology Inc. (ALGN) gained 5.84 to 23.65.

Cheniere Energy, Inc. (LNG) was very strong today, up 1.45 to 11.93. Netflix, Inc. (NFLX) jumped 3.28 to 84.14, SodaStream International Ltd. (SODA) 4.41 to 33.84, and Travelzoo Inc. (TZOO) 2.03 to 33.28.

The Chinese sector was strong as well. Low-priced China Mass Media Corp. (CMM) was up 1.09 to 2.34, or 87%; Inc (YOKU) up 2.25 to 22.85, or 11%; and E-Commerce China Dangdang Inc. (DANG) 1.53 to 7.56, or 25%.

Other stocks of note included Renren Inc. American Depositary (RENN) up 92 cents to 7.02, FEI Company (FEIC) 5.20 to 41.71, Stillwater Mining Co. (SWC) 2.50 to 12.45, MedAssets, Inc. (MDAS) 1.35 to 11.20, Accuride Corp. (ACW) 90 cents to 6.74, Visteon Corp. (VC) 6.02 to 57.18, Arch Coal Inc. (ACI) 2.23 to 20.22, CB Richard Ellis Group, Inc. (CBG) 2.00 to 18.98, Green Mountain Coffee Roasters Inc. (GMCR) 5.55 to 70.99, LinkedIn Corporation Class A Co (LNKD) 6.70 to 93.93, and IPG Photonics Corporation (IPGP) 3.55 to 55.00 even.

Coal stocks continue to be strong, with Patriot Coal Corporation (PCX) up another 1.60 to 13.36.

On the downside, Universal Display Corp. (PANL) was down 1.26 to 47.94.

Other than that, very few stocks were down on our board today, and there were no stocks down as much as a point. Even the ultra-shorts were very fractionally lower.

Today was a great way to end week and the month. We’ll see how it goes in November.

Good Trading!


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