Closing Analysis

Indices Close Strong

Closing Technical Market Analysis for Sun December 16th 2012

The stock market indices started the week off with a bang. They ran up sharply from the get-go, and within minutes they hit their overhead resistance and backed off. The Nasdaq 100 came back much sharper because Apple Inc. (AAPL) was down on the session early on and then reversed. That helped the indices in a beautiful, 5-wave rally intraday, closing at the highs for the day going away on a big spike in the afternoon, particularly in the last half hour when they exploded.

Net on the day, the Dow was up 102.83 at 13,237.38. The S&P 500 was up 16.92 at 1439.50. The Nasdaq 100 was up 36.17 at 2654.26.

Advance-declines were 2 to 1 positive on the New York Stock Exchange, and 2 1/2 to 1 positive on Nasdaq. Up/down volume was 5 to 1 positive on New York, with total volume of 625 million shares. Nasdaq traded over 1.85 billion, which is big volume, and had a 2 to 1 positive volume ratio. board was mostly higher. Leading the way, Google Inc. (GOOG) was up 18.82 to 720.78, and Apple Inc. (AAPL) up 9.04 to 518.83, getting as high as 520 today. Inc. (AMZN) popped 4.67 to 253.86. Financials were strong with Goldman Sachs Group, Inc. (GS) leading the way up 4.13 to 123.49.

Swing trade Conns Inc. (CONN) jumped 1.31 to 29.76, reaching 29.95 at one point. The Home Depot, Inc. (HD), another recent swing trade, gained 1.25 to 63.31. International Business Machines Corporation (IBM) rose 1.86 to 193.62, Netflix Inc. (NFLX) 1.40 to 94.70, and Pharmacyclics Inc. (PCYC) 1.70 to 62.75.

It was a big day for SodaStream International Ltd. (SODA), up 3.00 to 43.56.

Large percent gainers included GenVec, Inc. (GNVC), which advanced 37 cents to 1.68, or 28%, on 1.5 million shares, a 6400% increase in volume. LiveDeal, Inc. (LIVE) was the big percent gainer today, up 1.44 to 4.99, or 40%. Velti Plc (VELT) gained 71 cents to 4.55, or 18 1/2%, on 4.5 million shares. Oncolytics Biotech Inc. (ONCY) rose 28 cents to 3.38, or 9%, on 1.6 million shares. OCZ Technology Group, Inc. (OCZ) snapped back 15 cents to 1.90, or 25%.

VIVUS Inc. (VVUS) was a big gainer today, up 160 to 13.08, or 14%. Caribou Coffee Company, Inc. (CBOU) was acquired today, up 3.78 to 16.10, or 31%, on 8.9 million shares, and its competitor, Coffee Holding Co.Inc. (JVA) popped 83 cents to 7.84, or 12%, on 1 million shares.

In addition, Hovnanian Enterprises Inc. (HOV) jumped 50 cents to 5.80 on 13 million shares. Standard Pacific Corp. (SPF), also in the industrial goods sector, ran 53 cents to 7.09. Tronox Incorporated (TROX) gained 1.60 to 17.37, YY Inc. (YY) 1.10 to 14.75, Polypore International Inc. (PPO) 3.25 to 44.21, G-III Apparel Group, Ltd. (GIII) 2.44 to 34.96, and SINA Corporation (SINA), which we traded, 3.32 to 48.65. Texas Industries Inc. (TXI) rose 2.95 to 50.40, Ryland Group Inc. (RYL) 2.24 to 35.85, and Cirrus Logic Inc. (CRUS) was up 1.70 to 27.29.

On the downside, the Green Mountain Coffee Roasters Inc. (GMCR) was down 1.39 to 38.93, Peabody Energy Corp. (BTU) 1.05 to 26.63, and the ProShares Ultra VIX Short-Term Fut ETF (UVXY) 1.41 to 19.05. Those were the only stocks down today on our board.

Stepping back and reviewing the hourly chart patterns, the indices were up sharply at the get-go, pulled back sharply but held. They ran very hard midday, only to pull back quite sharply in the afternoon, held support, and then exploded into the close as short covering took over. Although the indices closed near 1431 S&P 500 and 2664-5 zone NDX, both of which are resistance levels, it sure looks positive for more upside going forward as the S&P 500 held its major trend line over the last few weeks.

We’ll see how it goes on tomorrow.

Good Trading!


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- Harry Boxer

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