Closing Analysis

A Nice Start to the Week

Closing Technical Market Analysis for Tue May 29th 2012

The stock market indices started out with a bang today, gapping up sharply, pausing, and then running even sharply higher. The NDX reached 2570, and the S&P 500 reached nearly 1335. Then. they rolled over sharply in the morning to midday, reaching the pullback lows. They bounced around, held, moved steadily higher in stair-step fashion, and then spiked up into the close, closing substantially higher.

Net of the day, the Dow was up 125.86 at 12,580.69, about 31 points off its high, the S&P 500 was up 14.60 at 1332.42, only 2 1/2 points off its high, and the Nasdaq 100 was up 31.92 at 2558.97, 12 points off the high.

Advance-declines were nearly 4 to 1 positive on New York, and 2 1/2 to 1 positive on the Nasdaq. Up/down volume was almost 8 to 1 positive on New York, with total volume 715 million shares traded, 630 million up and 80 million. Nasdaq traded 1.6 billion, and had a 3 to 1 positive volume ratio. board was vastly higher today. Leading the way were large-caps stock. Apple Inc. (AAPL) was up nearly 10.00, at 9.98 to 572.27. Google Inc. (GOOG) gained 2.81 to 594.34. Inc. (AMZN) advanced 1.86 to 214.75. International Business Machines Corp. (IBM) was up 2.16 to 196.46. Goldman Sachs (GS) gained 1.62 to 97.86.

Other gainers of note included VirnetX Holding Corp (VHC), one of our swing trades, which was a day trade of ours. It spiked 3.27 to 33.39, or 10%, on 2.3 million shares. OmniVision Technologies Inc. (OVTI), another one of our day trades, gained 1.21 to 15.40. Cobalt International Energy, Inc. (CIE) snapped back 1.22 to 23.23.

ProShares UltraShort Silver (ZSL) ran up 2.70 to 68.37. The The Direxion Daily Small Cap Bull 3X Shares (TNA) gained 2.11 to 50.45, and the Direxion Daily Financial Bull 3X Shares (FAS) jumped 3.14 to 82.80.

In addition, there were quite a few large percentage gainers on our board today. Leading the way was Microvision Inc. (MVIS) which jumped 1.36 to 2.59, or 110 1/2%, on 3.6 million shares. Vaalco Energy Inc. (EGY) was up 1.06 to 9.10, or 13%, on 1.35 million shares. Santarus, Inc. (SNTS) gained 81 cents to 6.80, or 13 1/2%, on 2 million shares.

VimpelCom Ltd. (VIP) was up 80 cents to 8.11, or nearly 11%, on 6 million shares. Spreadtrum Communications Inc. (SPRD) gained 1.71 to 18.20, or 10%, on 2.6 million shares. Terex Corp. (TEX) jumped 1.87 to 18.80, or 11%, on 6.5 million shares.

The Allstate Corporation (ALL) advanced 68 cents to 34.25. Nationstar Mortgage Holdings Inc. (NSM) was up 1.60 to 19.28. Emergent BioSolutions, Inc. (EBS), in a generally strong biotech sector, gained 1.21 to 14.91. Swing trade Pilgrim's Corp. (PPC) was up 59 cents to 8.56. USG Corporation (USG) advanced 1.28 to 16.95. Solazyme, Inc. (SZYM) gained 91 cents to 10.75. Cirrus Logic Inc. (CRUS) was up 1.94 to 29.39.

On the downside, Facebook, Inc. (FB) lost another 3.07 to 28.84, now nearly 10 of its IPO price. What a disaster there. Vertex Pharmaceuticals Incorporated (VRTX), which got crushed 14 1/2 points earlier today, dropped to 50, closing at 57.80, down 7.05, but it was way off the lows.

Stepping back and reviewing the hourly chart patterns, the indices gapped up, they ran sharply higher in the morning, reached the morning highs within an hour of the opening, and then pulled back to the session pullback lows by midday only to come back in the afternoon, and close not that far off the session highs. It was a nice start to the week.

Let’s see how it goes tomorrow.

Good Trading!


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- Harry Boxer

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