Closing Analysis

Nasdaq Lags in Mixed Session

Closing Technical Market Analysis for Tue December 4th 2012

The stock market indices had a strange session, with the Dow and S&P 500 up and the Nasdaq 100 down sharply, due to Apple Inc. (AAPL) dropping 37 points and closing near the session lows today, on 36.6 million shares. Apple put a lot of pressure on the market, particularly late in the day when it rolled over.

The day started out with a gap down and a sharp sell-off that reached 2625 NDX and 1398 S&P 500. They then rallied very sharply, took back all of the gains and losses, and then some, on the S&P 500, but were unable to do so on the NDX. When that occurred, they backed and filled and formed wedges. Late in the session day they did break out but could not take out the highs, and then rolled over sharply into the close to pare way back the gains for today.

Net on the day, the Dow was up 76.42 at 13,034.49, 55 points off the high. The S&P 500 was up 2.22 at 1409.27, 6 points off its high. The Nasdaq 100 was down 31.00 at 2637.89, 26 points off its high.

Advance-declines were 15 to 14 positive on the New York Stock Exchange, and 13 to 10 negative on Nasdaq. Up/down volume was better than 2 to 1 positive on New York, with total volume of 735 million shares. Nasdaq traded over 1 3/4 billion and had a 9 to 8 positive plurality. board was mixed, with the NDX being dragged down by Apple Inc. (AAPL) 37.05 to 538.79. Google Inc. (GOOG) didn’t help much, down 3.21 to 687.82. However, Amazon Inc. (AMZN) managed to gain 1.47 to 253.96.

There were some outstanding stocks on our board today. Cobalt International Energy, Inc. (CIE), which we traded, was up 4.43 to 28.21, just pennies off its high on 7 million shares, after announcing an oil discovery.

Other gainers of note included quite a few large-percent gainers, mostly low-priced stocks. Mitek Systems Inc. (MITK) was the big winner on our board today, up 82 cents to 3.22, or 34%, on 2 million shares, on news of their mobile, photo, bill-payment solutions with U.S. banks. Net 1 Ueps Technologies Inc. (UEPS) gained 83 cents to 4.05 or 26% on 6.7 million shares. Cyclacel Pharmaceuticals, Inc. (CYCC) popped 1.31 to 7.68, or 20.5%, on 2.2 million shares.

Renewable Energy Trade Board Corporation (EBOD) was up 2.01 to 3.99, or 102%, and traded as high as 4.32 at one point in the day.

In addition, OCZ Technology Group, Inc. (OCZ) was up 25 cents to 2.20, or 13%, on 8.1 million shares. SUPERVALU Inc. (SVU) advanced 35 cents to 2.90, or 14%, on 18.4 million shares. Alpha Natural Resources, Inc. (ANR), which we traded today, closed up 82 cents to 8.07, or 11%, on 24 million shares. AeroVironment, Inc. (AVAV) gained 2.68 to 22.94, or 13%, on 1.4 million shares. SeaChange International Inc. (SEAC) gained 92 cents to 10.00 even, or 10%.

Also, VeriFone Systems, Inc (PAY) was up 2.29 to 32.54, Western Digital Corporation (WDC) up 2.44 to 36.03, and Citigroup, Inc. (C), which led the financials, 2.17 to 36.46. Walter Energy, Inc. (WLT) rose 1.95 to 31.66, and Peabody Energy Corp. (BTU) 1.12 to 26.06.

Energy XXI (Bermuda) Limited (EXXI), in a strong oil sector, was up 2.03 to 33.37, and Bank of America Corporation (BAC), on a major breakout, jumped 56 cents to 10.46, on 430 million shares.

ProShares Ultra DJ-UBS Natural Gas (BOIL) jumped 3.43 to 48.25.

On the downside, Cirrus Logic Inc. (CRUS) was down 1.05 to 28.72, Ellie Mae, Inc. (ELLI) down 1.32 to 23.25, Netflix Inc. (NFLX) 3.28 to 83.37, SodaStream International Ltd. (SODA) 1.52 to 40.46, Sarepta Therapeutics, Inc. (SRPT) 1.59 to 27.58, and SolarWinds, Inc. (SWI) 1.50 to 54.36.

Stepping back and reviewing the hourly chart patterns, the indices were down sharply early, up sharply midday, backed off and consolidated in the afternoon, tried to break out but couldn’t get through, and then rolled over into the close.

Net-net, the Dow and S&P 500 were up, and the Nasdaq 100 was down. It was somewhat of a positive day on up/down volume on both exchanges, but the advance declines were kind of mixed.

We’ll see how it goes on tomorrow.

Good Trading!


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