Another volatile day, another closing rally! The market struggled all day but really picked up momentum with 1 hour left in the trading. Yesterday, I said, “We’ll need to see SPX back above 1500 to feel more bullish, but, staying above the 10-day MA is a positive sign.” The broader market did manage to close above the 10-day MA, with the Dow gaining +44.06 points, SPX adding +1.82 points, and the Nasdaq down by 2.65 points.
Let’s see how the market looked at the close:
Even though SPX and the Dow managed to close green, most sectors were actually in the red. INX2 (Internet), SOX (semiconductors), and BTk (biotechs) were weak; but, SWH (software) added +1.19%. USO (oil) and OIH (oil services) were flat, while GLD (gold), GDX (gold miners), and XME (metals and minging) gave up some grounds. HGX (housing) managed a small gain and XLF (financials) closed flat. PBW (clean energy) was strong again. FXI (Chinese ADRs) gave up another 4%.
SPX
SPX added +1.82 points to close at 1488.41. It managed to close above the 10-day MA again. This is a good sign, especially after spending pretty much the whole day in the red. As I said yesterday, we’ll need to see SPX above 1500 to feel more bullish, which would also help to turn the 30-day MA up.
Nasdaq
Nasdaq closed down 2.65 points at 2668.49. It tested the 20-day MA again today and bounced back to close just under the 10-day MA. Also, the 10-day MA has now crossed above the 30-day MA, which is encouraging. The techs are still lagging the broader market a bit, though.
This morning, CIEN reported stellar earnings, but, the investors were disappointed with its growth forecast. Its shares slumped more than 12% today! After the market, Q announced a quarterly dividend, sending its shares up +6.32%! LEAP reported a quarterly earnings that beat the estimates. Its shares “leap”ed almost +10% in AH trading! ESLR announced a new 10-year polysilicon supply agreement with Silicium de Provence S. A. S. During the day, its shares had already jumped +4.86% on a “Buy” rating from UBS. With the new supply agreement in AH, its shares flew up another +16.48%!!
Good night and HappyTrading! ™
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5 Comments
“Good Sign! We’ll need to see the 30-day MA start turning up.”
One of the things that has really stood out about your nightly posts is that you are bullishly biased. I’m curious why that would be. In my mind the greatest differentiator between traders and investors is that investors need the markets to go up in order to make money…that isn’t the case for a trader.
Obviously if the market is tanking so bad that nobody will take the other side of the transaction then that’d be a problem. I’m not sure why a gradual decline would matter.
Your blog is very trader friendly. It seems as if you take a lot of time analyzing markets and it looks like a very credible site. I find just looking at your reviews to be a great morning read.
Have a happy holiday,
Lindsay at the TradersBlog
Michael,
I’m more bullishly biased because the long-term trend is bullish (monthly and quarterly charts). What I’m saying is that for the near-term, we’ll need to see clearer indicators.
Lindsay,
Thanks for your compliments! “Happy” holiday to you, too!
On Stockcharts.com John Murphy told subscribers that the monthly NYSE MACD has gone negative for the first time since the bull market began. It’s still early in the month but it doesn’t bode well.
The more that I learn about the markets the less that I want to be an ‘investor’ and the more advantages that I see in being a trader. I think we’re in for a wild ride in the next few months.
He is probably talking about the MACD “difference”, which also went slightly negative in July 2006. There are uncertainties right now on the market, and, being cautious is good. This is also why, again, we’re waiting for clearer indicators.
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