Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
NVIDIA THE KING OF THE METAVERSE! - 10th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
MATTERPORT (MTTR) - DIGITIZING THE REAL WORLD - METAVERSE INVESTING 2022 - 7th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
METAVERSE - NEW LIFE FOR SONY AGEING GAMING GIANT? - 6th Jan 2022
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Ominous Sell-Off

Stock-Markets / Stock Index Trading Apr 20, 2009 - 07:44 PM GMT

By: Harry_Boxer

Stock-Markets

The indices had a very sharp decline on Monday that may very well have reversed the entire 6 week uptrend. With the indices closing at the lows for the day and down sharply, led lower by the financials which had led the market up, it was a seemingly significant negative day on Wall Street.


The day started out with a big gap down on pre-market negative futures. After gapping lower, they went sharply lower after that. They managed to stabilize by mid-morning on the Nasdaq 100, although the S&P 500 continued to make lower lows all day. Eventually, in the afternoon, the NDX also set lower lows, and despite the fact that the NDX did bounce in the last half hour, the SPX after initially following rolled over hard and closed at the lows for the day going away.

Net on the day the Dow was down 289.60 to 7841, the S&P 500 down 37.21 to 832.39, and the Nasdaq 100 down 44.55 at 1309.37. The Philadelphia Semiconductor Index (SOXX) fell 6 percent, or14.62, to 240.19.

The technicals were extremely negative, with 300 up and 2800 down on advance-declines on New York and 454 and 2640 down on Nasdaq. Up/down volume was the story today, with about a 22 to 1 negative ratio on Nasdaq on total volume of more than 3 billion, and more than 27 to 1 negative on New York on total volume of close to 1 3/4 billion.

Needless to say, TheTechTrader.com board was extremely negative except for the ultrashorts, and a couple of our picks did very well today. Portfolio position DG FastChannel (DGIT) reached a new 6 1/2-month high at 21.72, closing at 21.35, up 73 cents. AgFeed Industries (FEED), also a portfolio position, after having tested 3 earlier in the session, closed at 3.64, up 34 cents, at the highs for the day going away on more than 4 million shares. Recent pick Dendreon (DNDN)jumped 1.53 to 19.52 on 17.7 million shares.

The ultrashorts obviously did very well today, with the UltraShort Financial ProShares (SKF) up 11.80 to 70.45, the UltraShort Real Estate ProShares (SRS) up 5.74 to 32.24, and the Direxion Large Cap Bear 3X Shares (BGZ) up 5.80 to 52.11. The Direxion Financial Bear 3x Shares (FAZ) had a stellar session, closing near the highs for the day at 11.63, up 2.73 on 234 million shares traded.

On the downside, the ultralongs got hammered, with the Direxion Financial Bull 3x Shares (FAS) down 2.82 to 6.58, and the Ultra Oil & Gas ProShares (DIG) 2.26 to 22.28, as oil dropped sharply. The iShares MSCI Brazil Index ETF (EWZ) dropped 2.47 to 41.39, and the Direxion Large Cap Bull 3X Shares (BGU) 3.82 to 25.82.

Goldman Sachs (GS) led the financials lower, down 5.59 to 115.01, just a penny off its low. JP Morgan (JPM) fell 3.57 to 29.69 on 109 million. Morgan Stanley (MS) dropped 1.48 to 23.52 on 45 million. Wells Fargo (WFC) closed near the lows for the day at 17, down 3.26 on 161 million. Bank of America (BAC) lost 2.58 to 8.02 on 193 million shares. Hartford Financial Services (HIG) also hammered at 9.11, down 2.07, on more than 19 million traded.
Other losses of note, Apple (AAPL) dropped 2.92 to 120.50, and Research in Motion (RIMM) 3.25 to 65.00. Mosaic (MOS) lost 2.85 to 39.33, Potash (POT) 3.37 to 86.40, and Agrium (AGU) 1.05 to 39.01.

Energy Conversion Devices (ENER) lost 1.56 to 14.26 in a weak solar sector, with SunPower (SPWR) down 2.20 to 24.25. Sequenom (SQNM) was down 1.45 to 14.82.

The shippers were hit hard, with DryShips (DRYS) down 90 cents to 6.27, and Excel Maritime (EXM) 1.04 to 6.50.

Stepping back and reviewing the hourly chart patterns, the indices gapped lower, took out the moving averages on the hourly charts, and kept going, with the S&P 500 closing right at its low for the day.

So, is this the trigger day that initiates a new downtrend and takes out the entire rising channel? We'll see if we get a downside follow-through, but today was an ominous session for the bulls.

Good trading!

Harry

For more of Harry Boxer, sign up for a FREE 15-Day Trial to his Real-Time Technical Trading Diary. Or sign up for a Free 30-Day Trial to his Top Charts of the Week service.

(c) 2009 AdviceTrade, Inc. All rights reserved. Distributed only by written permission of AdviceTrade and The Technical Trader at info@advicetrade.com . In using any portion of Harry Boxer's content, you agree to the terms and conditions governing the use of the service as described in our disclaimer at http://www.thetechtrader.com

Mr. Boxer's commentaries and index analysis represent his own opinions and should not be relied upon for purposes of effecting securities transactions or other investing strategies, nor should they be construed as an offer or solicitation of an offer to sell or buy any security. You should not interpret Mr. Boxer's opinions as constituting investment advice. Trades mentioned on the site are hypothetical, not actual, positions.

Harry Boxer Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in