Closing Analysis

Good Way to End the Week

Closing Technical Market Analysis for Thu January 17th 2013

The stock market indices had a topsy-turvy day and ended up on the plus side for the blue chips, but still slightly negative on the Nasdaq 100.

The day started out with a gap down and then a 5-wave decline to test support on both indices, which just before noon held. They then rallied into early afternoon and consolidated for a couple hours. Late in the day, in the last hour, they exploded, closing at the highs for the day going away.

Net on the day, the Dow was up 53.83 at 13,649.85, at the high for the day. The S&P 500 reached its 5-year high at 1485.95, up 5.01, closing at the exact high of the day, some 10 points off the low. The Nasdaq 100 was down 3.91 at 2743.24, 14 points off the low.

Advance-declines were almost 2 to 1 positive on the New York Stock Exchange, and positive by only 170 issues on Nasdaq. Up/down volume was 2 to 1 positive on New York, total volume just under a billion shares. Nasdaq traded almost 1 3/4 billion and had a 9 to 8 positive volume ratio. board, was mixed, and despite the fact that Apple Inc. (AAPL) was down 2.68 to 500.00, it did close 4 points off the low on a late snapback.

Goldman Sachs Group, Inc. (GS) was up 3.44 to 144.45, Inc. (AMZN) up 1.64 to 272.12, Incorporated (PCLN) 2.83 to 672.72, and Netflix Inc. (NFLX) 1.47 to 99.17.

Other gainers of note included Cree, Inc. (CREE), up 1.18 to 33.76, and Research In Motion Limited (RIMM) gained 93 cents to 15.84, and closed 10 cents off the high on 71 million shares.

Percent gainers included Daqo New Energy Corp. (DQ), up 1.24 to 10.24, or 14%. Life Technologies Corporation (LIFE) gained 5.82 to 60.79, or 11%, on 16 million shares, on news that they retained investment bankers for possible sale of their company. Movado Group, Inc. (MOV) advanced 3.17 to 33.17, or 9%. Morgan Stanley (MS), which we traded today, was a standout on earnings, up 1.63 to 22.38, or 8%, on 65 million shares.

Coal stocks were firm today, with Arch Coal Inc. (ACI) up 55 cents to 7.65, or 8%, on 30 million shares, among others in that group.

The GEO Group, Inc. (GEO) was up 2.03 to 32.75, Sony Corporation (SNE), which we traded today, up 80 cents to 12.71, State Street Corporation (STT) 2.98 to 53.36, Bloomin' Brands, Inc. (BLMN) 94 cents to 18.50, SolarCity Corporation (SCTY) 71 cents to 15.92, Tumi Holdings, Inc. (TUMI) 1.26 to 23.78, and 3D Systems Corp. (DDD) 2.67 to 65.82, reaching new all-time highs.

ProShares Ultra DJ-UBS Natural Gas (BOIL) gained 1.98 to 43.64.

Schlumberger Limited (SLB) was up 3.13 to 76.50, Stratasys Inc. (SSYS) 3.74 to 89.69, Infinity Pharmaceuticals, Inc. (INFI), a recent swing trade of ours, 1.44 to 35.83, General Electric Company (GE), on strong earnings, 74 cents to 22.04 to new multi-year highs, and Alnylam Pharmaceuticals, Inc. (ALNY) 80 cents to 22.65.

Cornerstone OnDemand, Inc. (CSOD), a favorite of ours and one of our Top 20 picks, jumped 1.16 to 31.64. Goldman Sachs put it on their buy list.

OSI Systems, Inc. (OSIS) popped 2.37 to 70.02, and ViroPharma Inc. (VPHM) advanced 1.10 to 27.07.

On the downside, ProShares Ultra VIX Short-Term Fut ETF (UVXY) got hammered for 1.69 to 11.56.

Stepping back and reviewing the hourly chart patterns, the indices came down in a 5-wave decline to hold support by late morning and rallied back in a 3-wave sharp advance to new multi 5-year highs on the S&P 500.

It was a good way to end the week. We’ll see how it goes next week.

Good Trading!


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- Harry Boxer

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