Closing Analysis

Market Rallies on Trade Rumors

Closing Technical Market Analysis for Thu January 17th 2019

The stock market had a very positive session on Thursday, although they started out with futures lower. They gapped down, and within a minute, or two, they started to rally and rallied all day, with a very sharp pop in the morning, backed and filled, and formed wedges. They broke out to the upside, tested the highs, but they continued to consolidate sideways for a few hours on the Nasdaq 100 while the S&P 500 continued with nominal new highs. In the afternoon, when rumors hit that the U.S. was considering lifting tariffs on China, the market literally exploded, and within fifteen minutes, the Nasdaq 100 went from 6675 to 6748 and the S&P 500 popped from 2621 to 2645. When rumors denied that, the market pulled back sharply, and then bounced again into the close to finish positive on the day.

Net on the day, the Dow was up 162.94 at 23,370.10. The S&P 500 was up 19.86 at 2635.96. The Nasdaq 100 was up 49.89 at 6718.45.

Advance-declines were 21 to 8 positive on the New York Stock Exchange, and 19 to 11 positive on the Nasdaq. Up/down volume was better than 3 to 1 positive on New York, total volume 3 billion shares traded. The Nasdaq traded 2.7 billion shares and had a better than 3 to 1 volume ratio.

TheTechTrader.com board was mostly green. Amazon.com, Inc. (AMZN) was up 9.44 to 1693.22, Alphabet Inc. (GOOG) up 8.93 to 1089.90, Apple Inc. (AAPL) up just 92 cents to 155.86, and Netflix, Inc. (NFLX) 1.80 to 353.19.

Tesla, Inc. (TSLA) jumped 1.26 to 347.31, Intuitive Surgical, Inc. (ISRG) ran 18.35 to 534.28, NVIDIA Corporation (NVDA) gained 2.88 to 151.72, and First Solar, Inc. (FSLR) advanced 1.08 to 48.38.

The Direxion Daily S&P Biotech Bull 3X ETF (LABU) jumped 1.13 to 48.30, and Nutanix, Inc. (NTNX) up 1.15 to 50.16.

To the upside, Square, Inc. (SQ) was up 2.94 to 68.84, Teladoc, Inc. (TDOC) up 2.86 to 63.29, AbbVie Inc. ABBV) 1.65 to 87.20, and Valero Energy Corporation (VLO) 1.49 to 80.49.

Point-plus losers included Baidu, Inc. (BIDU) down 1.64 to 168.11, and Tilray, Inc. (TLRY) down 2.16 to 83.45.

Checking TheTechTrader.com percent-gain leaderboard, SAExploration Holdings, Inc. (SAEX) thrust 83 cents, or 22%, to 4.63, on 1.7 million shares. Marin Software Incorporated (MRIN) climbed 98 cents, or 16%, to 7.18, on 1.9 million shares. Biocept, Inc. (BIOC) advanced 69 cents, or 29 1/2%, to 3.03, on 18 million shares. Agenus Inc. (AGEN) stair-stepped 54 cents, or 17%, to 3.73, on 6.4 million shares.

In addition, Cardiome Pharma Corp. (CORV) snapped back 59 cents, or 26%, to 2.87, on 1.4 million shares. Lipocine Inc. (LPCN) closed up 29 cents, or 18%, to 1.88, on over 25 million shares. LM Funding America, Inc. (LMFA) popped 70 cents, or 49%, to 2.12, on 29 million shares. TravelCenters of America LLC (TA) moved up 53 cents, or 13%, to 4.61, on 1.2 million shares. VirnetX Holding Corp (VHC) snapped back 63 cents, or 12%, to 5.75.

Knight-Swift Transportation Holdings Inc. (KNX) jumped 2.53, or 9%, to 31.70, on 6.3 million shares. Attunity Ltd. (ATTU) advanced 1.81, or 8%, to 25.20, on 1.9 million shares.

Among other gainers, Cars.com Inc. (CARS) was up 1.55 to 24.71, Lululemon Athletica Inc. (LULU) up 2.90 to 145.14, and Insmed Incorporated (INSM) up 1.46 to 24.69.

Stepping back and reviewing the hourly chart patterns, once again the indices opened sharply lower on Thursday, but immediately rallied in the morning, consolidated midday, and then exploded on trade rumors before backing off. After the sharp pullback, they rallied back to close at the snapback high, finishing with very positive gains for the day.

Let’s see what happens tomorrow.

Good Trading! 

Harry  


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