Closing Analysis

Spectacular Historic Day for Wall Street

Closing Technical Market Analysis for Wed December 26th 2018

It was a spectacular, historic day on Wall Street on Wednesday as the markets first gapped up and pulled back, on the S&P 500, to a nominal new mutli week low under 2350, nearly 600 points off the all time highs reached just 3 months ago. The Nasdaq 100 managed to hold 5920, which is above Friday’s low at 5900. With that kind of positive divergence, a morning rally was triggered, extending all day, and really accelerating in the last three hours. The indices experienced a session run of historical proportions, exploding into the close, and finishing at the highs for the day going away.

Net on the day, the Dow has a spectacular gain of 1086.25 at 22,878.45, up 5%. The S&P 500 was up 116.60 at 2467.70, about 4 1/2%. The Nasdaq 100 was up 363.41 at 6262.77, up 6.16%.

Advance-declines were nearly 7 to 1 positive on the New York Stock Exchange, and 4 to 1 positive on the Nasdaq. Up/down volume was 22 to 1 positive on New York, total volume 4.2 billion shares traded. The Nasdaq traded 3.15 billion shares and had a 8 to 1 volume ratio.

TheTechTrader.com board was nearly all green, especially for the Nasdaq 100 big boys that led the way. Amazon.com, Inc. (AMZN) was up 126.94 to 1470.90, Alphabet Inc. (GOOG) up 63.24 to 1039.46, Facebook, Inc. (FB) up 10.12 up 134.18, Apple Inc. (AAPL) 10.34 to 157.17, and Netflix, Inc. (NFLX) a whopping 19.79 to 253.67.

Tesla, Inc. (TSLA) jumped 30.70 to 326.09, NVIDIA Corporation (NVDA) gained 6.02 to 133.10, Intuitive Surgical, Inc. (ISRG) climbed a huge 27.09 to 461.98, Microsoft Corporation (MSFT) gained 6.43 to 100.56, and Intel Corporation (INTC) advanced 2.60 to 46.19.

Baidu, Inc. (BIDU) was up 5.92 to 163.04, and First Solar, Inc. (FSLR) 2.75 to 4.99.

The Direxion Daily S&P Biotech Bull 3X ETF (LABU) popped 5.58 to 30.79, AbbVie Inc. (ABBV), a swing of ours, up 4.88 to 89.04, Teva Pharmaceutical Industries Limited (TEVA) 1.23 to 15.62, and Vanda Pharmaceuticals Inc. (VNDA) 2.17 to 25.95.

Other stocks to the upside included Square, Inc. (SQ) up 4.58 to 55.30, Teladoc, Inc. (TDOC) up 5.44 to 48.32, Roku, Inc. (ROKU) 3.18 to 30.35, Twitter, Inc. (TWTR) 2.20 to 28.65, Valero Energy Corporation (VLO), with a new swing trade added on Wednesday, 4.37 to 73.31, Advanced Micro Devices, Inc. (AMD) 1.25 to 17.90, and Acacia Communications, Inc. (ACIA) 1.86 to 38.03.

Checking TheTechTrader.com percent-gain leaderboard, USA Technologies, Inc. (USAT) climbed 65 cents, or 20%, to 3.90, on 1.2 million shares. Adial Pharmaceuticals, Inc. (ADIL) ran 1.36, or 27%, to 6.31, on 10 million shares, running up as high as 7.50. Qutoutiao Inc. (QTT) thrust 1.04, or 20%, to 6.12, on 1.7 million shares.

California Resources Corporation (CRC) advanced 3.06, or 22%, to 16.98, on 4.4 million shares. CareDx, Inc (CDNA) jumped 2.64, or 13%, to 22.67. Amarin Corporation plc (AMRN) ran 1.56, or 13%, to 13.98, on 8.5 million shares. ACADIA Pharmaceuticals Inc. (ACAD) snapped back 1.52, or 11%, to 15.84, on 2.5 million shares. Tandem Diabetes Care, Inc. (TNDM) gained 4.36, or 13 1/5%, to 36.47, on 1.3 million shares. NF Energy Saving Corporation (NFEC) stair-stepped 3.07, or 26%, to 14.99.

Stepping back and reviewing the hourly chart patterns, after forming a falling wedge in the morning, the indices went to nominal new lows on the S&P 500, without the Nasdaq 100 confirming, but they turned it around sharply, the Nasdaq 100 going from 5920 to 6261, 341 points off its low, and up 363 on the day. The S&P 500 went from 2346 to 2467, 121 points off its low. It was a fantastic, mid-week session.        

Let’s see what happens tomorrow.

Good Trading! 

Harry  


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