Closing Analysis

Strong Solid Session

Closing Technical Market Analysis for Tue February 5th 2019

The markets had a solid up-day on Tuesday, nothing spectacular, but positive, nonetheless. The day started out with a pop to the upside, then a 3-wave corrective pullback midday, a very steep pullback but it held, they rallied back, tested the highs and nominal new highs, and then backed off and closed near the session highs.

Net on the day, the Dow was up 172.15 at 25,411.52. The S&P 500 was up 12.83 at 2737.70, just a point off the high. The Nasdaq 100 was up 63.56 at 7023.52, 6 points off its high.

Advance-declines were 18 to 10 positive on the New York Stock Exchange, and 17 1/2 to 13 positive on the Nasdaq. Up/down volume was better than 2 to 1 positive on New York, total volume 3.4 billion shares traded. The Nasdaq traded 2 1/4 billion shares and had a 13 to 9 positive volume ratio.

TheTechTrader.com board was mostly higher on Tuesday. Amazon.com, Inc. (AMZN) was up 25.50 to 1648.81, Alphabet Inc. (GOOG) up 13.19 to 1145.99, Apple Inc. (AAPL) up 2.93 to 174.18, Facebook, Inc. (FB) 1.91 to 171.16, and Netflix, Inc. (NFLX) 4.47 to 355.81.

Tesla, Inc. (TSLA) jumped 8.46 to 321.35, Microsoft Corporation (MSFT) gained 1.48 to 107.22, and Baidu, Inc. (BIDU) bounced 2.29 to 176.23.

Other stocks to the upside included Nektar Therapeutics (NKTR) up 1.25 to 43.75, DocuSign, Inc. (DOCU) up 1.41 to 52.45, Valero Energy Corporation (VLO) 1.17 to 85.96, and AbbVie Inc. (ABBV) 1.16 to 79.69.

Point-plus losers included GrubHub Inc. (GRUB) down 1.54 to 79.87, Canopy Growth Corporation (CGC) down 1.08 to 48.64, and Cronos Group Inc. (CRON) 1.42 to 21.83.

The Direxion Daily S&P Biotech Bull 3X ETF (LABU) dropped 1.02 to 49.93, after being as high as 53.33, and Exact Sciences Corporation (EXAS) down 1.56 to 87.10.

So, biotech stocks and marijuana stocks were not as strong on Tuesday, but tech stocks led the way, particularly the FANG stocks.

Checking TheTechTrader.com percent-gain leaderboard, INSYS Therapeutics, Inc. (INSY) ran 39 cents, or 10%, to 4.36, on 3.6 million shares. Allot Ltd. (ALLT), on earnings, advanced 69 cents, or 10%, to 7.70, on 1.5 million shares.

SCWORX, Corp (WORX), on an acquisition, jumped 3.48, or 94%, to 7.18, on 2 million shares. Amyris, Inc. (AMRS), after disclosing a cannabinoid partnership, moved up 2.31, or 73%, to 5.47, on 54 million shares.

The Estée Lauder Companies Inc. (EL) snapped back 15.85, or 12%, to 152.02, on 10.4. Array BioPharma Inc. (ARRY) climbed 2.07, or 11%, to 20.96, on 14 million shares. Evolus, Inc. (EOLS), one of our swing trades, exploded 5.33, or 26%, to 25.83, on 6.9 million shares. MOGU Inc. (MOGU) eked out 2.50, or 15%, to 19.00. Argan, Inc. (AGX) closed up 5.79, or 14%, to 47.41.

Among other gainers, JD.com, Inc. (JD) was up 1.13 to 25.42, Catalent, Inc. (CTLT) up 1.89 to 39.23, Ralph Lauren Corporation (RL) 9.61 to 124.16, REGENXBIO Inc. (RGNX) 1.72 to 47.12, Box, Inc. (BOX) 1.88 to 23.45, Skyworks Solutions, Inc. (SWKS) 1.09 to 75.96, and Paycom Software, Inc. (PAYC) 1.00 to 156.96.

Stepping back and reviewing the hourly chart patterns, the indices gapped, ran up, and then pulled back hard midday, held support, however, came on strong and closed at the highs for the day.

Let’s see what happens tomorrow.

Good Trading! 

Harry  


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