Closing Analysis

Stocks Sink As Fear of Tariffs on Chinese Goods Rise

Closing Technical Market Analysis for Tue May 7th 2019

The stock market had a very volatile negative session on Tuesday and stock decline deepened with the Dow dropping more than 600 points as investors are convinced Trump will follow through on threats to enact tariffs on China.

The day started out with big gaps down, and it was all downhill from there. Indices tried to rally midmorning but faded. They tried again just before the noon hour, and again, they were just too weak to rally. They came back down and retested successfully. In early afternoon the S&P 500 and Nasdaq 100 reached near apex of wedges and by midafternoon they were very oversold. As losses continued to mount, a strong late short covering, fueled by a late rally, took them into the close.

Net on the day, the Dow was down 473.39 at 25,965.09. The S&P 500 was down 48.42 at 2884.05. The Nasdaq 100 was down 153.94 at 7640.15.

New York Stock Exchange total volume was 3.6 billion shares traded, and the Nasdaq traded 2.3 billion shares.

TheTechTrader.com board had no large-cap Nasdaq winners on Tuesday, but we did have a few gainers on our board. Eagle Pharmaceuticals, Inc. (EGRX) was up 3.67 to 56.95, Kirkland Lake Gold Ltd. (KL) up 1.90 to 32.80, Beyond Meat, Inc. (BYND) 4.38 to 79.17, Primoris Services Corporation (PRIM) 1.05 to 22.66, MTS Systems Corporation (MTSC) 2.48 to 58.72, and Catasys, Inc. (CATS) 1.18 to 16.98.  

To the downside, point-plus losers included Amazon.com, Inc. (AMZN) was down 29.55 to 1921.00, Alphabet Inc. (GOOG) down 15.29 to 1174.10, Apple Inc. (AAPL) 5.62 to 202.86, Facebook, Inc. (FB) 4.11 to 189.77, and Netflix, Inc. (NFLX) 8.21 to 370.46. Microsoft Corporation (MSFT) lost 2.63 to 125.52.

Tesla, Inc. (TSLA) dropped 8.26 to 247.06, NVIDIA Corporation (NVDA) gave back 6.74 to 173.11, and Intuitive Surgical, Inc. (ISRG) caved 17.17 to 491.31.

The Direxion Daily S&P Biotech Bull 3X ETF (LABU) dropped 5.50 to 47.44.

Other stocks to the downside included Square, Inc. (SQ) down 1.72 to 68.42, Roku, Inc. (ROKU) down 1.34 to 64.41, Etsy, Inc. (ETSY) 2.06 to 66.97, DocuSign, Inc. (DOCU) 2.66 to 52.23, and QUALCOMM Incorporated (QCOM) 3.05 to 85.20.

In addition, Lyft, Inc. (LYFT) was down 1.23 to 59.34, Cornerstone OnDemand, Inc. (CSOD) down 1.07 to 53.27, Jumia Technologies AG (JMIA) 1.92 to 35.80, and Inogen, Inc. (INGN) 4.01 to 91.14.

Checking TheTechTrader.com percent-gain leaderboard, GrowGeneration Corp. (GRWG) soared 52 cents, or 19%, to 3.24. Planet Green Holdings Corp. (PLAG) made sharp, strong moves all day while running up 52 cents, or 12%, to 4.72. Vivint Solar, Inc. (VSLR) stair-stepped 70 cents, or 11%, on 2.6 million shares.

Akoustis Technologies, Inc. (AKTS) moved up 1.31, or 20 1/2, to 7.71, on 1.75 million shares. Bridgeline Digital, Inc. (BLIN) popped 1.02, or 16 1/2%, to 7.20, on 10 million shares.

Veeco Instruments Inc. (VECO) ran 1.43, or 11%, 14.40. SolarEdge Technologies, Inc. (SEDG) gained 9.96, or 23%, to 53.84, on 5.9 million shares. Ducommun Incorporated (DCO) closed up 5.60, or 13%, to 48.16. EverQuote, Inc. (EVER) bounced around all day, gaining 1.17, or 13%, to 10.39. Cray Inc. (CRAY) climbed 3.74, or 14%, to 29.97, on nearly a million shares.

ARCA biopharma, Inc. (ABIO) snapped back 1.20, or 11%, to 12.58, on 1.6 million shares. Itron, Inc. (ITRI) thrust 11.46, or 21%, to 64.93, on 2 million shares.

Among other gainers, GW Pharmaceuticals (GWPH) was up 2.64 to 182.73 and Ferrari N.V. (RACE) 5.37 to 137.70.

Let’s see what happens tomorrow.

Good Trading! 

Harry  


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