Technical Trader Closing Brief

October Decline Continues

We had another down-session today following up on yesterday’s moderate losses, although a bit heavier today. The indices had moderately negative futures, and they gapped down at the opening, made lower lows, took out yesterday’s lows, but managed to snap back sharply to nominally take out yesterday’s session highs on the NDX but failed to do so on the S&P 500. Then they rolled over and sold off steadily and fairly sharply at mid-day to late in the afternoon when they managed to snap back and come back off the lows.

But net on the day the Dow was down 79 1/4, the S&P 500 a little bit more than 5, and the Nasdaq 100 nearly 13. The Philadelphia Semiconductor Index (SOXX) was the culprit today, dropping nearly 11 points, or more than 2 percent.

Technicals were negative on advance-declines by 5 to 3 on New York and 3 to 2 on Nasdaq. Up/down volume was about 3 to 2 negative on New York on lighter volume of just over 1.2 billion. Nasdaq volume was nearly 1.9 billion, with about a 12 to 7 negative ratio.

TheTechTrader.com board was narrowly mixed, except for a few point-plus gainers and losers. On the plus side, China Natural Resources (CHNR) exploded again and was up more than 20 points at one point today and traded near 49, before backing off 10 points and closing up 11.40 on the day on 8 3/4 million.

That was a Chart of the Day of ours just two days ago at 13.90.

e-Future Information Technology (EFUT) , also in the Chinese sector, jumped 12,60 on 11 million shares and closed at 31.60.

Recently added portfolio position FuelTek (FTEK) had a stellar day on rumors of a big contract for their product in China. The stock jumped 2.46 on 1 3/4 millin shares, heavy volume for the stock. That is today’s Chart of the Day at http://www.thetechtrader.com/info/charts/

Portfolio position Auxilium Pharmaceuticals (AUXL) had an excellent, up 1.04 to a new multi-year high.

Eschelon Corp. (ELON), another portfolio position, was up 44 cents. And UEPS, also in our portfolio, was up 69 cents. Recently added ZVUE gained 26, or almost 10%, to close at 3.

On the downside, JA Solar (JASO) gave back 3.66, portfolio position Cree Inc. (CREE) got hammered on a downgrade, down 3.75, and China Medical Technologies (CMED) fell 3.28.

Aluminum Corp. of China (ACH) fell 4.34, Ascent Solar (ASTI) down 1.42, Excel Maritime (EXM) down 3.51, along with Home Inns & Hotels (HMIN) 1.34. VMware (VMW) also lost 4.17.

Stepping back and reviewing the hourly chart patterns, the Nasdaq 100 moved below its 40 DMA on the hourly charts for the first time in several weeks, although the S&P 500 did not confirm and is still holding above support around the 1536-37 zone. We’ll see how it goes tomorrow, but we could be beginning the expected early October pullback that could lead to some deeper levels.