Closing Analysis

Stocks Plunge as U.S./China Trade War Continues

Closing Technical Market Analysis for Mon August 5th 2019

 The stock market had a volatile, lower session on Monday as the DOW opened 350 points down from Friday’s close, and the S&P 500 and Nasdaq 100 opened significantly lower as well. After reports of the U.S./China tariff conflict, indices took a turn for the worst and the market made more new lows. A slight snapback rally ensued, but the indices slowly slipped lower, reaching the bottom of the fifth-intraday low. They bounced, making up bars off the lows, pulled back, and then took off as the rally extended. At the end of the session, indices came down and bounced several times, testing support.  In the last five minutes, they made several narrow, sharp, long and short, moves then pulled back into the close.

Net on the day, the Dow was down 767.27 at 25,717.74. The S&P 500 was down 87.31 at 2844.74. The Nasdaq 100 was down 277.11 at 7415.69.

Advance-declines were 9 1/4 to 1 negative on the New York Stock Exchange and 6 1/4 to 1 negative on the Nasdaq. Up/down volume was 2 1/2 to 1 negative of New York, total volume 4.4 billion shares traded. The Nasdaq traded 2.5 billion and had a 5 to 1 negative volume ratio.

TheTechTrader.com board was blood red on Monday. Point-plus losers included Amazon.com, Inc. (AMZN) down 58.11 to 1765.13, Alphabet Inc. (GOOG) down 41.67 to 1152.32, Apple Inc. (AAPL) 10.68 to 193.34, Facebook, Inc. (FB) 7.29 to 181.73, and Netflix, Inc. (NFLX) 11.20 to 307.63.

Tesla, Inc. (TSLA) lost 6.02 to 228.32, NVIDIA Corporation (NVDA) gave back 10.40 to 150.79, Intuitive Surgical, Inc. (ISRG) down 22.14 to 491.46, Microsoft Corporation (MSFT) 4.69 to 132.21, and Intel Corporation (INTC) 1.71 to 46.97. First Solar, Inc. (FSLR) dropped 4.62 to 62.01.

The Direxion Daily S&P Biotech Bull 3X ETF (LABU) fell 4.29 to 38.96.

Other stocks to the downside included Enphase Energy, Inc. (ENPH) down 1.67 to 27.45, Tandem Diabetes Care, Inc. (TNDM) 3.80 to 61.46, Twitter, Inc. (TWTR) 2.49 to 40.36, Uber Technologies, Inc. (UBER) 1.35to 39.05, Lululemon Athletica Inc. (LULU) 4.47 to174.46, The Trade Desk, Inc. (TTD) 11.20 to 249.78, Beyond Meat, Inc. (BYND) 1.17to 174.94, Walmart Inc. (WMT) 3.59 to 105.82, and Spotify Technology S.A. (SPOT) 3.47 to 160.00 were among many other stocks to the downside.

To the upside, there were several point-plus gainers on our board on Monday. Tyson Foods, Inc. (TSN) was up 4.07 to 83.83, Aerojet Rocketdyne Holdings, Inc. (AJRD) up 1.46 to 48.32, Boise Cascade Company (BCC) 1.61 to 28.88, and one of my favorites, Seabridge Gold Inc. (SA) 1.02 to 15.34, Kirkland Lake Gold Ltd. (KL) 2.39 to 46.46.

Checking TheTechTrader.com percent-gain leaderboard, Superior Energy Services, Inc. (SPN) popped 14 cents, or 25%, to 68 cents, on 9.8 million shares.

Allakos Inc. (ALLK) exploded 34.26, or 1101/2%, to 65.26, on 8.4 million shares, almost 25 times more than average volume. Osisko Gold Royalties Ltd (OR) ran 1.16, or 10%, to 13.25, on 1.3 million shares.

ETF’s did very well on Monday. The ProShares UltraPro Short QQQ (SQQQ) ramped 3.67 to 38.45. The ProShares Ultra VIX Short-Term Futures (UVXY) gained 6.56 to 37.16. The VelocityShares Daily 2x VIX ST ETN (TVIX) closedup 4.02 to 22.57.

The Direxion Daily Jr Gold Miners Bull 3X ETF (JNUG) was up 10.21, to 90.59, and the Direxion Daily Gold Miners Bull 3X ETF (NUGT) gained 2.97 to 37.52.

The Direxion Daily Small Cap Bear 3X ETF (TZA) ran 4.26 to 52.46, and the Direxion Daily S&P Biotech Bear 3X ETF (LABD) advanced 2.04 to 22.22.

The VelocityShares 3x Inv Natural Gas ETN (DGAZ) climbed 14.61 to 196.55, the Direxion Daily S&P Oil & Gas Exploration & Production Bear 3X Shares (DRIP) bounced 11.41 to 100.47.

Among other gainers, ABIOMED, Inc. (ABMD) was up 3.91 to 204.53, and Roku, Inc. (ROKU) up 2.04 to 102.57.

Let’s see what happens tomorrow.

Good Trading! 

Harry  


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