Closing Analysis

Strong Start Gives Way to Late Rollover in Down Session

Closing Technical Market Analysis for Mon November 12th 2012

The stock market indices started the day with a bang. Although they were down early, they came back with a roar and set the session highs just before one o’clock. At that point they were solidly in the plus column, but overhead resistance proved futile. They came down, bounced midday afternoon and rolled over hard the last 2 hours to close at the afternoon lows for the day.

Net on the day, the Dow was down 58.67 at 12,756.41. The S&P 500 was down 5.47 at 1374.56, 14 points off its high and 3 points off its low. The Nasdaq 100 was down 20.91 at 2561.86, about 25 points off its high and 7 points off its low.

Advance-declines were about 2 to 1 negative on the New York Stock Exchange, and 2 to 1 negative on Nasdaq. Up/down volume was worse than 2 to 1 negative on New York, with total volume of 670 million shares. Nasdaq traded over 1.8 billion and had a better than 12 to 5 negative volume ratio. board was mostly narrowly mixed. Leading the way to the downside, Google Inc. (GOOG) was down 6.85 to 659.05, not far off the low for the day, and broke 4-day support as well. However, Apple Inc. (AAPL) was flat, edging up 7 cents to 542.90, 8 points off its high and 6 points off the low.

There were some gainers today. Good Times Restaurants Inc. (GTIM) was up 56 cents to 2.26, or 33%. ZaZa Energy Corporation (ZAZA) was the leading gainer today, up 44 cents to 1.81, or 32%, on 3 million shares. Dynavax Technologies Corporation (DVAX) gained 56 cents to 4.74, or 13.6%, on 18 million shares. Halcon Resources Corporation (HK) advanced 49 cents to 5.87, or 9%, on 8.5 million shares.

Greenbrier Companies (GBX) was up 2.78 to 16.73, or 20%, on 2.6 million shares on acquisition of Ichan. Their competitor, American Railcar Industries, Inc. (ARII), jumped 4.68 to 31.16, or 18%.

Diamond Foods, Inc. (DMND) popped 2.58 to 20.43, or 14 1/2%, on 1.2 million shares. Clean Energy Fuels Corp. (CLNE) rose 1.20 to 12.26, or 11%, on 1 million shares.

ProShares Ultra DJ-UBS Natural Gas (BOIL) climbed 4.34 to 53.54. United States Natural Gas (UNG) gained 1.01 to 22.02.

Other stocks of note included Ligand Pharmaceuticals Incorporated (LGND) up 1.25 to 17.80, Repros Therapeutics Inc. (RPRX) up 75 cents to 13.82, and Dick's Sporting Goods Inc. (DKS) 2.27 to 50.97.

On the downside, the Direxion Daily Financial Bull 3X Shares (FAS) was down 1.82, to 100.41. VirnetX Holding Corp (VHC) gave back 1.67 to 33.68.

Stepping back and reviewing the hourly chart patterns, the indices opened lower, sharply so, but came back sharply in a 3-wave rally that brought the S&P 500 from 1372 to 1388 and the NDX from 1255 to 1287. However, they pulled back, retested, and rolled over in the afternoon to close well off the highs, and not that far from the lows, actually.

It was a lousy day indeed.

We’ll see how it goes on tomorrow.

Good Trading!


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- Harry Boxer

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