Closing Analysis

Another Spectacular Session

Closing Technical Market Analysis for Mon December 17th 2012

The stock market indices had another spectacular session today. The day started out with a gap up, followed by a quick pullback. The indices tested support successfully and then took off, running hard from 2670 to 2708 on the Nasdaq 100 by midday. The S&P 500 ran from 1431 to 1447. In the afternoon, as expected, they backed and filled, consolidated, and formed wedges, but when they couldn’t break down they spiked up into the close in the last 15-20 minutes, and closed with spectacular gains.

Net on the day, the Dow was up 115.57 at 13,350.96. The S&P 500 was up 16.43 at 1446.79, a point off the high. The Nasdaq Composite was up 43.93 at 3054.53, 2 points off the high.

Advance-declines were 3 to 1 positive on the New York Stock Exchange, and 2 1/2 to 1 positive on Nasdaq. Up/down volume was nearly 7 to 1 positive on New York, with total volume of more than 800 million shares. Nasdaq traded just under 2 billion and had a 4 to 1 positive volume ratio.

The Nasdaq generals led the way today. Apple Inc. (AAPL) was up 15.07 to 533.90, and Google Inc. (GOOG) was pretty flat, up 29 cents to 721.07, but Amazon Inc. (AMZN) gained 6.54 to 260.40. Priceline Incorporated (PCLN) was up 15.87 to 632.74, and IBM (IBM) up 2.07 to 195.69.

Goldman Sachs Group (GS), in a strong financial group, was up 4.28 to 127.77, as well as Bank of America Corporation (BAC), which jumped 35 cents to 11.35, on nearly a quarter billion shares traded. ­­­­­­­­­­­­­­Citigroup, Inc. (C) jumped 31 cents to 39.46, on 60 million shares.

In addition, Onyx Pharmaceuticals, Inc. (ONXX) was up 2.37 to 80.83, Sarepta Therapeutics, Inc. (SRPT) 1.65 to 26.10, Green Mountain Coffee Roasters Inc. (GMCR) 2.07 to 41.00, and Ellie Mae, Inc. (ELLI) 2.55 to 27.02.

Direxion Daily Small Cap Bull 3X Shares (TNA) jumped 2.59 to 63.31, and the Direxion Daily Financial Bull 3X Shares (FAS) snapped back 4.47 to 121.50. board had quite a few percent gainers today. Low-priced DragonWave Inc. (DRWI) was up 62 cents to 2.99, or 26%, on 1.2 million shares. Vanda Pharmaceuticals, Inc. (VNDA) advanced 61 cents to 3.83, or 19%, on 4.7 million shares, a 3000% increase in volume. Rosetta Genomics, Ltd. (ROSG) closed up 39 cents to 4.65, or 9%.

Also, Vanda Pharmaceuticals, Inc. (VNDA), which we traded today, gained 2.29 to 19.24, or 13 1/2%, on 6.3 million shares. Goodrich Petroleum Corp. (GDP) popped 1.01 to 9.22, or 12%, on 2.4 million shares. Maxwell Technologies Inc. (MXWL) moved 91 cents to 8.12, or 12 1/2%.

Tronox Incorporated (TROX), which we traded today, was up 1.71 to 19.08. YPF S.A. (YPF) was up 1.18 to 15.81, Cardtronics Inc. (CATM) up 2.17 to 24.64, LogMeIn, Inc. (LOGM) 1.55 to 22.25, and Spreadtrum Communications Inc. (SPRD), which we traded today, 1.25 to 17.94. BJ's Restaurants, Inc. (BJRI) gained 2.15 to 35.19.

Other gainers of note included Carrizo Oil & Gas Inc. (CRZO), up 1.34 to 22.02, along with Stratasys Inc. (SSYS), up 4.28 to 75.27. Rackspace Hosting, Inc. (RAX), on takeover rumors, gained 3.89 to 72.44. Hercules Offshore, Inc. (HERO), which we initiated a swing trade on today, rose 43 cents to 5.82, while Mindspeed Technologies Inc. (MSPD) jumped 34 cents to 4.35.

Cirrus Logic Inc. (CRUS), up 1.15 to 28.44, and USG Corporation (USG), up 1.01 to 28.40, rounded out our gainers for today.

Stepping back and reviewing the hourly chart patterns, the indices rocketed through midday and then consolidated in the afternoon, only to come on again at the close, making new highs for the day at 1448 on the S&P 500, and closing a point below that. More importantly, the NDX broke above resistance at 2700, and the S&P 500 broke above resistance in the 1438-9 zone. So we may be on our way to more extensive gains, although, on the intermediate chart, we’re at the top of the channel on the S&P 500 in this zone.

We’ll see how it goes on tomorrow.

Good Trading!


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- Harry Boxer

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