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Indices Rally from Big Down Gap to Close Near Flat
Posted on February 27, 2012 at 19:56 PM EST
The stock market indices suffered sharp losses at the opening, but quickly reversed and rallied sharply, even getting into the positive column. They then bounced around, consolidated for the rest of the day, and made new highs with about an hour to go at nearly 2617 on the Nasdaq 100 and nearly 1372 on the S&P 500. They pulled back sharply, bounced, and then rolled over into the close to put the Dow in the negative column. Net on the day, the Dow was down 1.44, giving back 46 points, closing under 13,000 at 12,981.51 after reaching 13,027.37. The S&P 500 was up 1.85 to 1367.59, 4 1/2 points off its high. The Nasdaq 100 was up 2.55, but closed more than 10 points off its high at 2606.76, with a high of nearly 2617. Advance-declines were barely ahead on the New York Stock Exchange by only 11 issues, and Nasdaq had 227 stocks lower versus higher. Up/down volume was also barely ahead by a narrow margin on New York, with total volume just over 720 million shares traded today. Nasdaq traded about 1.7 billion shares and had a 10 to 7 positive volume ratio. TheTechTrader.com board, as a result, was mostly mixed, with a few outstanding stocks both up and down. Leading the way today on percentage gains was low-priced Tibet Pharmaceuticals, Inc. (TBET), which closed at 1.50, up 78 cents, or 108.33%, but a big drop off its high of around 2.35 today. ATP Oil & Gas Corporation (ATPG) rose 1.35 to 8.47, or 19%; TGC Industries, Inc. (TGE) 1.48 to 10.51, or 16%; China Automotive Systems, Inc. (CAAS) 88 cents to 6.21, or 16 1/2%; Cooper Tire & Rubber Co (CTB) 2.16 to 17.82, or 13.8%; and low-priced Pacific Ethanol, Inc. (PEIX) 22 cents to 1.61, or 16%. Cheniere Energy Partners (CQP) jumped 2.80 to 23.70, or 13%, and Cheniere Energy, Inc. (LNG) snapped back 1.66 to 15.71. Low-priced Dex One Corporation (DEXO), one of our swing trades, was up 28 cents to 1.81, closing near the high for the day. Orexigen Therapeutics, Inc. (OREX) advanced 40 cents to 4.16, while OSI Systems, Inc. (OSIS), on a big contract, jumped 6.23 to 59.81, a new all-time high. Netlist, Inc. (NLST) was up 31 cents to 3.59, and Frontline Ltd. (FRO) gained 46 cents to 6.00. In addition, swing trade Discovery Laboratories (DSCO) rose 36 cents to 3.76, Flotek Industries, Inc. (FTK) 92 cents to 12.38, Amedisys Inc (AMED) 94 cents to 12.93, Clear Channel Outdoor Holdings (CCO) 1.31 to 13.23, and Hot Topic, Inc. (HOTT), a new swing trade of ours, 65 cents to 9.05. MedcoHealth Solutions Inc. (MHS) exploded for 2.38 to 66.52 on news of an acquisition. VIVUS, Inc. (VVUS) jumped 1.65 to 23.78, but traded over 25 earlier. Royale Energy Inc. (ROYL) gained another 54 cents to 6.59. Apple Inc. (AAPL) made a new all-time high today, up 3.35 to 525.76, on 19.5 million shares, after reaching as high as 528.50 earlier in the day. On the downside, Netflix, Inc. (NFLX) lost another 2.26 to 109.41 as it continues to fade. That was the only point-plus loser on our board today. Stepping back and reviewing the hourly chart patterns, big down gaps at the opening couldn’t thwart the market as within the next 15 minutes after some follow-through they then exploded to the upside. They consolidated the rest of the session only to pull back into the close to leave the indices fairly flat on the day. Good Trading! Harry
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