Closing Analysis

Bullish Start to the Week

Closing Technical Market Analysis for Mon January 7th 2019

The stock market started the week out with a nice gain on Monday, although they were off the highs with an afternoon sell-off. The day started out with a little pop to the upside, they pulled back, a wedge formed, and right there they started to rally, and had a nice 5-wave move into early afternoon when they reached their highs at 6520 on the Nasdaq 100 and 2566 on the S&P 500. In the afternoon, a falling wedge pulled back to the trendline. When that held, they bounced about 50 percent, and then pulled back again at the close, the last five minutes, in particular, to finish up on the day, but off the highs. It was a little bit disappointing, but not too bad.

Net on the day, the Dow was up 98.19 at 23,531.35. The S&P 500 was up 17.75 at 2549.69, 17 points off the high. The Nasdaq 100 was up 65.58 at 6488.25, 33 points off the high.

Advance-declines were 4 to 1 positive on the New York Stock Exchange, and 4 to 1 positive on the Nasdaq. Up/down volume was 4 to 1 positive on New York, total volume of 4 billion shares traded. The Nasdaq traded 2 1/2 billion shares and had a 3 to 1 volume ratio.

TheTechTrader.com board had a big day on Monday and it was mostly green. Amazon.com, Inc. (AMZN) was up 54.12 to 1629.51, Netflix, Inc. (NFLX) up 17.77 to 315.34, Tesla, Inc. (TSLA) up 17.27 to 334.96, NVIDIA Corporation (NVDA) 7.21 to 143.40, and Intuitive Surgical, Inc. (ISRG) 6.76 to 478.44. Baidu, Inc. (BIDU) climbed 1.65 to 162.60.

The Direxion Daily S&P Biotech Bull 3X ETF (LABU) jumped 18% higher on Monday, up 6.62 to 43.63, Nektar Therapeutics (NKTR) up 2.66 to 36.62, Bausch Health Companies Inc. (BHC) 1.11 to 22.36, BioPharma Inc. (ARRY) up 1.39 to 17.09, and Fate Therapeutics, Inc. (FATE) 1.77 to 16.55.

Other stocks to the upside included Array Square, Inc. (SQ) up 2.54 to 60.72, Teladoc, Inc. (TDOC) 2.69 to 52.13, Twitter, Inc. (TWTR) 1.39 to 31.34, Xilinx, Inc. (XLNX) 2.31 to 89.76, and XPO Logistics, Inc. (XPO) 2.26 to 59.18.

To the downside, the only point-plus loser was Alphabet Inc. (GOOG), down 2.32 to 1068.39. However, Apple Inc. (AAPL) was down a very small fraction on Monday as well.

Checking TheTechTrader.com percent-gain leaderboard, Agenus Inc. (AGEN) stair-stepped 28 cents, or 10%, to 3.25, on 4.6 million shares. Apyx Medical Corporation (APYX) advanced 87 cents, or 13%, to 7.49. Neptune Technologies & Bioressources Inc. (NEPT) bounced 36 cents, or 12%, to 3.25, on 2.65 million shares. Reata Pharmaceuticals, Inc. (RETA) exploded 13.72, or 23%, to 72.75, on 1.2 million shares.

QEP Resources, Inc. (QEP) gained 2.45, or 40%, to 8.53, on 34 million shares. Axsome Therapeutics, Inc. (AXSM), on positive drug news, popped 4.24, or 161%, to 6.87, on 51 million shares. Lannett Company, Inc. (LCI) ran 1.25, or 21%, to 7.32, on 4.9 million shares.

Sage Therapeutics, Inc. (SAGE), on huge drug news, closed up 41.62, or 43%, to 139.13, on 3.85, on million shares. Exact Sciences Corporation (EXAS) climbed 9.71, or 15%, to 75.36, on 4.6 million shares. DexCom, Inc. (DXCM) thrust 13.71, or 12%, to 129.95, on 2 million shares. Clovis Oncology, Inc. (CLVS) eked out 3.39, or 18%, to 21.72, on 4.7 million shares.

Twilio Inc. (TWLO) gained 8.43, or 10%, to 96.98, on 8.5 million shares. Blueprint Medicines Corporation (BPMC) jumped 7.56, or 14%, to 61.04, on nearly a million shares. Roku, Inc. (ROKU) climbed 8.45, or 25%, to 42.18, on 42 million shares. Invitae Corporation (NVTA) snapped back 1.92, or 16%, to 13.60, on 2.2 million shares. Insmed Incorporated (INSM) moved up 6.42, or 43%, to 21.27, on 6.1 million shares.

Among other gainers, Advanced Micro Devices, Inc. (AMD) was up 1.57 to 20.57, AbbVie Inc. (ABBV) up 1.30 to 90.37, Dollar Tree, Inc. (DLTR) 5.07 to 97.96, and California Resources Corporation (CRC) 1.13 to 20.48.

Stepping back and reviewing the hourly chart patterns, the indices were up in the morning, down in the afternoon, tested support, held, bounced, and then backed off into the close to finish positive, but off the highs for the day. Nevertheless, a bullish start to the week.

Let’s see what happens tomorrow.

Good Trading! 

Harry  


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