Closing Analysis

And the Overdue Retracement Begins

Closing Technical Market Analysis for Thu February 7th 2019

The markets had a difficult session on Thursday with big gaps down, and then after an early rally failed, they plunged even deeper. The Nasdaq 100 dropped to 6854.35, and then took the afternoon to work its way back to over 6900.00. The S&P 500 plunged to 2687.26, but closed over 2700.00, rallying back about 18 points.

Net on the day, the Dow was down 220.77 at 25,169.53. The S&P 500 was down 25.56 at 2706.03, 19 points off the low. The Nasdaq 100 was down 92.64 at 6904.98, about 50 points off the low.

Advance-declines were 20 to 9 negative on the New York Stock Exchange, and 5 to 1 negative on the Nasdaq. Up/down volume was 3 to 1 negative on New York, total volume 3 billion shares traded. The Nasdaq traded 2 1/4 billion shares and had a little more than 2 to 1 negative volume ratio.

TheTechTrader.com board was nearly all red on Thursday. To the downside, Amazon.com, Inc. (AMZN) was down 25.89 to 1614.37, Alphabet Inc. (GOOG) down 16.52 to 1098.71, Apple Inc. (AAPL) down 3.30 to 170.94, Facebook, Inc. (FB) 4.11 to 166.38, and Netflix, Inc. (NFLX) 7.48 to 344.71.

Tesla, Inc. (TSLA) dropped 9.71 to 307.51, Intuitive Surgical, Inc. (ISRG) plunged 12.59 to 509.36, and NVIDIA Corporation (NVDA) gave back 5.58 to 147.42. Baidu, Inc. (BIDU) fell 2.27 to 171.58.

The Direxion Daily S&P Biotech Bull 3X ETF (LABU) dropped 4.13 to 46.61, and Exact Sciences Corporation (EXAS) was down 1.55 to 86.80.

Other stocks to the downside, Sarepta Therapeutics, Inc. (SRPT) was down 4.05 to 137.44, MacroGenics, Inc. (MGNX) down 2.73 to 22.87, Exelixis, Inc. (EXEL) 1.38 to 21.22, Twitter, Inc. (TWTR) 3.36 to 30.80, Incyte Corporation (INCY) 1.59 to 79.83, Fiat Chrysler Automobiles N.V. (FCAU) 2.12 to 15.23, Fortinet, Inc. (FTNT) 1.86 to 79.36, Ligand Pharmaceuticals Incorporated (LGND) 1.12 to 116.52, Dunkin' Brands Group, Inc. (DNKN) 2.05 to 66.79, and California Resources Corporation (CRC) 2.53 to 18.70.

Point-plus gainers included Cronos Group Inc. (CRON) up 1.77 to 21.42.

Checking TheTechTrader.com percent-gain leaderboard, Zafgen, Inc. (ZFGN) snapped back 46 cents, or 10%, to 4.98.

3Pea International, Inc. (TPNL) ran 2.03, or 41%, to 6.95, on 3 million shares.

IRobot Corporation (IRBT) gained 8.62, or 10%, to 98.04, on 3.3 million shares. HealthEquity, Inc. (HQY) popped 5.72, or 9%, to 72.17, on 2.5 million shares. Hanesbrands Inc. (HBI) stair-stepped 3.14, or 20%, to 18.71, on 29.4 million shares. SunTrust Banks, Inc. (STI) advanced 5.98, or 10%, to 64.72, on 25 million shares.

Sealed Air Corporation (SEE) climbed 3.70, or 9%, to 44.27, on 5.3 million shares. Shutterfly, Inc. (SFLY) 3.95, or 9%, to 47.91, on 2.8 million shares. ION Geophysical Corporation (IO), one of our swing trades and picks for the year, on a spectacular session, thrust 2.43, or 25%, to 12.18. Evolus, Inc. (EOLS) climbed 4.85 or 20%, to 28.91, on 4.9 million shares.

Chipotle Mexican Grill, Inc. (CMG) exploded 59.72, or 11%, to 585.78, on 4.4 million shares, reaching 604.00 at one point in the day.

The VelocityShares 3x Inv Natural Gas ETN (DGAZ) gained 12.61, or 12%, to 121.53, on 2 million shares.

Among other gainers, Masco Corporation (MAS) was up 2.27 to 35.52, Cardinal Health, Inc. (CAH) up 3.46 to 54.25, HealthEquity, Inc. (HQY) 5.72 to 72.17, W. R. Grace & Co. (GRA) 1.33 to 74.49, and World Wrestling Entertainment, Inc. (WWE) 3.75 to 83.51.      

Stepping back and reviewing the hourly chart patterns, the indices were down sharply, a 3-wave sharp decline ensued, but in late morning when they stabilized, they moved up in slowly rising channels. It was nothing spectacular and certainly not necessarily a basing pattern. I’m very concerned they’ve broken the pattern and will be headed lower.

Let’s see what happens tomorrow.

Good Trading! 

Harry


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