chart
and is healthy for further advances, you may be right.
interesting day tomorrow?
As you predicted, had a retractment today. Do you think we had a push Thurs. by shorts to cover today?
If so I applaud them.
possibly...people have made a lot over the week...wanted to make sure they take it home
2100...that may be tough to get over
I'm in these guys right now:
ANX
IFLB
GIGM
I think it looks healthy. Need to pullback a bit. Take a little rest. I didn't take as much off the table as I should have. I'll see by next week if my plan will catch up to Mr.Market.
So I'm thinkin it will be a weak volume day tomorrow with profit taking on the big runners(buying opportunities in some of them)...i think this started today (ex: epyh retracing)..and overall I think we are in a trading range(without clear direction) overall in the markets. No time for chart sorry.
Any thoughts 3stocksonfire members?
Yes, it makes sense EliteG... But I'm a bit afraid of this zone on the NDX, since 1490/1510 has been a support/resistance zone, and this descending swing may just stop or speed up on this price range... Taking in consideration NDX on 1493, this is very a dangerous zone to watch another down day...
Yea I see what you are saying Ramsburg on the NDX. Its at the 50sma and the 200ema I wonder if it bounces back today. Looking at the Nasdaq Composite though I see a lot of support levels in place and to me we break out of range oscillation when we break 2100 topside or 2000 lowside. I guess that a pretty big range but it seems similar to mid-jan to mid-march.
Thanks, both of you for these thoughts.
Being european, I had forgotten about 4th of july!
Very possible that especially small stocks will be sold out today - I can understand that.
I skall exersice "sitting on my hands" today, that is: not trade!
And I'll TRY not to panic. ;)
Have a great weekend - and a good 4th!
Cheers!
Looks like a possible bearish island reversal setting up in the markets with the opening gap down pressure.
"9:00AM: S&P futures vs fair value: -2.1. Nasdaq futures vs fair value: -4.0. Negative bias persists in pre-market trading, setting the stage for stocks to open on a downbeat note... Aside from financial stocks making headlines, following Q2 earnings from C, BAC, KRB and SCH, falling oil prices, a Q2 earnings miss from Noble Corp (NE) and downgrades on MRO, OXY, and VLO at Smith Barney could weigh on the Energy sector... Consumer discretionary should also be in focus as investors weigh reports of Whirlpool's (WHR) $1.3 bln bid for Maytag (MYG) against mixed results from HAS and MAT"
http://finance.yahoo.com/mo
*edit: this also seemed important
"8:30AM: S&P futures vs fair value: -2.1. Nasdaq futures vs fair value: -3.0. Still shaping up to be a lower start for the cash market as futures indications trade below fair value... With no notable economic data scheduled for today and only five releases on the docket all week, the spotlight remains fixed on earnings reports... So far, it appears Citigroup's disappointment may be providing the impetus to lock in some recent gains following performances on the Dow, S&P and Nasdaq of 3.2%, 2.8% and 4.8%, respectively, over the last two weeks"
Today will be interesting, attempts to slow down market sentiment with brokers lowering targets on yesterdays key reporters INTC, YHOO, plus Greenspan talking later s many watch and wait until he is don:
--------
News Headlines
Intel, GM, Yahoo pressure futures
Four Dow industrials components top forecasts
By Steve Goldstein , MarketWatch
Last Update: 8:09 AM ET Jul 20, 2005
LONDON (MarketWatch) -- Market reaction to Intel Corp., General Motors Corp. and Yahoo Inc.'s second-quarter results weighed on stock-market futures Wednesday, with traders also awaiting testimony from Federal Reserve Chairman Alan Greenspan later in the session.
S&P 500 futures fell 4.4 points and Nasdaq 100 futures weakened 11.5 points.
General Motors ( GM ) swung to a second-quarter loss of $286 million, or 51 cents a share. Excluding restructuring charges, it loss of 56 cents a share was well below analyst forecasts of an adjusted profit of 3 cents a share.
Revenue fell to $48.5 billion from $49.3 billion.
Five of the other six Dow industrials components reporting earnings -- Pfizer Inc. ( PFE ), Altria Group ( MO ), J.P. Morgan Chase & Co. ( JPM ), Honeywell International ( HON ) and United Technologies ( UTX ) - met or exceeded forecasts.
Pfizer Inc reported that second-quarter net income rose 21%, beating analyst estimates, as revenue added 1%. Net income for the member of the Dow Jones Industrial Average reached $3.46 billion, or 47 cents a share, from $2.86 billion, or 38 cents, in the year-earlier period. After special items, adjusted earnings were 46 cents a share. The consensus estimate of analysts surveyed by Thomson First Call was 44 cents. Revenue rose to $12.43 billion from $12.27 billion; analysts were looking for revenue of $12.15 billion.
Altria Group met earnings forecasts for the quarter and lifted its 2005 outlook by 5 cents a share, J.P. Morgan swung to a profit and posted adjusted results that were ahead of forecast, and United Technologies and Honeywell also posted results ahead of forecast.
Overseas, mining stocks were in demand after China reported stronger-than-expected first quarter GDP of 9.5% and after Rio Tinto's ( RTP ) second-quarter production report showed that most operations were producing at or near capacity. Rio Tinto shares rose over 3% in London.
In currencies, the British pound lost ground against the dollar and the euro after minutes showed more members than expected voted for a rate cut in the July meeting. See currencies.
Crude-oil futures rose back over $59 a barrel in early electronic trade as Hurricane Emily began to land.
Focus stocks
In the early morning, Chevron ( CVX ) upped its bid for Unocal, now offering $63.01 in cash and stock. Unocal backed the revised offer, while Chinese oil company CNOOC ( CEO ) said it was holding onto its $67 cash offer. See story.
Maytag Corp. ( MYG ) said that a consortium of China's Qindao Haier Ltd. and two U.S. equity partners has abandoned its bid to buy the American household appliance manufacturer.
Also, Groupe Danone ( DA ) continued to gain from bid speculation, up over 5% as the Financial Times said PepsiCo ( PEP ) has hired UBS and Morgan Stanley to provide advice on a possible bid, and The Wall Street Journal reporting that Danone has held talks with unnamed "white knight" suitors.
Eastman Kodak ( EK ) increased the number of jobs it planned to cut as part of its restructuring to 22,500 to 25,000 from 15,000 due to the faster-than-anticipated decline in consumer film sales. Kodak reported a second-quarter loss of $146 million, or 51 cents a share, vs. a profit of $136 million, or 46 cents a share in the same period a year ago. Excluding discontinued operations and other non-recurring items, earnings would have been 53 cents a share. Revenue rose 6% to $3.69 billion from last year's $3.46 billion, as a rise in graphic communications and health group sales offset a decline in digital and film imaging sales. Analysts surveyed by Thomson First Call had been expecting earnings of 80 cents a share and revenue of $3.63 billion, on average.
Broker calls
J.P. Morgan cut chip giant Intel Corp. ( INTC ) to neutral from overweight, saying it is concerned with pricing pressures, peaking utilization rates and gross margins resulting in lower-than-expected leverage. The broker told clients that as a result of the peak in leverage and increasing capital expenditures, it believes further upside to its estimates is limited.
But Citigroup Smith Barney raised its price target on chip giant Intel Corp. to $32 from $30, citing the strong demand environment. The broker told clients that given Intel's predisposition to be conservative on its guidance, it suspects some upside is possible come the company's mid-quarter update.
Intel shares were hit around 5% in pre-open deals.
RBC Capital Markets cut its price target on Internet search engine Yahoo, Inc. ( YHOO ) to $36 from $40, saying second-quarter sales came in slightly below consensus as international seasonality reduced the sequential revenue growth rate. In addition, the broker told clients that the upside to margins was in part driven by the push out of marketing costs related to the launch of the music subscription products.
Yahoo shares tumbled over 9% in pre-open trade.
Citigroup Smith Barney cut video game maker Electronic Arts, Inc. ( ERTS ) to neutral from buy, citing the recent rise of the share price. The broker told clients it continues to believe the company will post first-quarter 2006 results toward the higher end of management targets.
just some support, resistance and japanese candlestick analysis of the Nasdaq :)
looking good on the short term with confirmed hammers but 2200 is a mental barrier...
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=2974%3Cbr%20/%3E*%20Nasdaq%20001%2007-28-2005.JPG)
med-short term chart shows support from a trendline and the 9ema..2165 might give a bit of support too.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=2975%3Cbr%20/%3E*%20Nasdaq%20002%2007-28-2005.JPG)
way-long term shows 2 resis lines meeting in this area..will we be able to break through? helps to be prepared whichever way it goes.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=2973%3Cbr%20/%3E*%20Nasdaq%20long%2007-28-2005.JPG)
and then some interesting look at PPO and MACD...we have potential here.. ;D
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=2978%3Cbr%20/%3E*%20Nasdaq%20003%2007-28-2005.JPG)
thats what i see..
8)
Although I belong to the pessimists and bears I have to recognize that I see a lot of strength in this markets nowadays.The run in the markets is led by S&P and the Nasdaq and I feel that the DJIA is left a little for behind, but I guess that doesnt mather much.
About todays session in the Nasdaq, i felt very happy about the confirmation of what I was expecting a summer rally, which is not very common in the financial markets.Forget about the stupid holidays, holidays are for the fools, live is to short to spend it in our yatch on some beach in the south of Europe enjoying the sun and the summer.
I expect that today move over 2200 point in the Nasdaq composite was a breakout of that resistance.Looking at this 3 year chart I feel that the upside move initiated in the end of April is just part of the big upside that is about to come.Although the light volume I feel confident on the upside.
www.papuasiainvest.com
Buysantander
02/08/2005
The HotStix weekly QQQQ chart really shows the patterns in play. The image is getting cut off at the end of June but it still gives a good big picture view of the Q's. As long as the Aug/2004 & April/2005 support trendline extended to today and into the future holds the Nasdaq 100 remains bullish.
Ascending wedge...
COMPX has recently formed a WW. It has successfully hit its target (1-4)
Could be a short term sell off in the COMPX to set up for the holiday rally... this would be a minor correction. >:D
Read more about the WolfWave Pattern here: http://www.3stocksonfire.org/trading/index.php?topic=3732.msg34518#msg34518
(http://forum.chartsetups.com/attachment.php?attachmentid=18&stc=1)
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=9961;image)
How big of a drop could it go?
The pattern really doesn't define a target after point 6. It just states significant resistance exists at point 6. Hence if you bought at point 5, point 6 would be the sell target.
This leads me to believe the COMPX might have temporary weakness...
Here is an old chart I dug up exhibiting the same pattern as COMPX....
After point 6 was hit you can see it dropped quickly.. but eventually recovered...
Quote from: brandyjoco on November 22, 2005, 05:15:07 PM
How big of a drop could it go?
I don't know...but if point #6 is a key resistance area, then this is a breakout:
(http://img472.imageshack.us/img472/5498/051122compq7xr.jpg)
However, a look at the bigger picture doesn't look too great:
(http://img400.imageshack.us/img400/6462/051122compq29ku.jpg)
As you can see, we've already established points 1-4. We are now on our way to point 5 which should lie just above the 1-3 line. The implied target is well below 2,000...I dunno, these Wolf waves are new to me, maybe I've got something wrong...
I'm just tryin' to run with what calven showed us in the TA forum...calven, thoughts?
Chart 1
I went back and re-drew my lines as precise as I could....connected the exact lows and highs....
Looks like the COMPX is just slightly above the trendline but according to this new chart it is not breaking out yet. Since point 5 is the entry and 6 is the target sell I suspect the COMPX will have some weakness. If 6 is the target that would imply to me that it is a resistance level. However, there is nothing to say it doesnt ride that blue upsloping resistance line....
Wolfwaves are not "perfect" but give a general idea of where resistance/support levels are present. Judging by the huge momentum run we have had since point 5 on the chart I would say there is a strong possibility of a temporary correction off that resistance line. It is not out of the question to have the COMPX temporarily break above the 1-4 resistance line...
Chart 2
The problem with chart 2 is the element of "symmetry". Chart 2 is more of a right (ascending) triangle pattern. The support line is far more inclined than the resistance line. This severely takes away from the credibility of the second chart you made.... but you nailed the concept.... According to the second chart you made the COMPX (if it had symmetry) it would be in an "unconfirmed" point 5 (false breakout) as you stated. Glad to see you have the concept but chart 2 is wrong.
thanks for contributing to this thread.... ;)
Glad to have a few followers of this thread. Will be interesting to see how this WW plays out! >:D
-cal
Quote from: calven on November 22, 2005, 09:57:52 PM
Chart 2
The problem with chart 2 is the element of "symmetry". Chart 2 is more of a right (ascending) triangle pattern. The support line is far more inclined than the resistance line. This severely takes away from the credibility of the second chart you made.... but you nailed the concept.... According to the second chart you made the COMPX (if it had symmetry) it would be in an "unconfirmed" point 5 (false breakout) as you stated. Glad to see you have the concept but chart 2 is wrong.
thanks for contributing to this thread.... ;)
Glad to have a few followers of this thread. Will be interesting to see how this WW plays out! >:D
-cal
I see...ok, this is fun! So let's look at this YHOO chart (1 yr weekly), I see that this has better symmetry to it, but look how far above the 1-3 line it's broke, does that invalidate the pattern?
(http://img363.imageshack.us/img363/9049/051122yhoo0uj.jpg)
I need your help. I see we might be at the top on Nasdaq - what do you think? I don't know how to post the chart but here it is below (Three tops...we are at resistance):
If it doesn't come thru than put in COMP in a chart for 3 years and connect all three highs and all three lows to see we are at the top of a channel. Also, here is an editorial from YAHOO :
How overbought is the market? Extremely overbought. The McClellan Oscillator closed on Wednesday at a bloated +160, which marks one of its most overbought readings of the past couple of years. In addition, by historical standards, according to some indicators, the market is pushing extremes.
For example, Peter Eliades of Stock Market Cycles points out that the longer-term Open-30 TRIN closed Tuesday at an overbought 0.87. He explains that this is the most overbought reading in this indicator since March and April of 2000 when the Nasdaq Composite and S&P made their all-time highs. Obviously that wasn't a good time to be buying stocks.
Not only is the market stretched, but sentiment indicators are again warning that too many bulls have embraced this rally.
The chart of the VIX below continues to warn of some trouble ahead. No official sell signal just yet, but we're getting close as it has now taken out the recent Sept. 16 low of 11.07. Now the only numbers of significance ahead are the July 20 lows of 9.88 intraday and 10.23 on a closing basis. I would rate new lows on an intraday and closing basis as an official sell signal in this indicator, and one that warrants considerable attention, given the record of this indicator when it scores new lows.
Stocks: Train Ride Up the Mountain Continues
While the bears keep warning of an impending crash, the train just keeps chugging up the mountain. We suspect that the bears will soon:
be forced to cover their short positions near the next intermediate top;
turn bullish to catch the last few percentage points up;
turn bearish again on the next dip and sell the market short just as the next correction ends.
As long as the market can climb this "Wall of Worry", stocks are in good shape.
Back in early 1995, our OEX Dollar-Weighted Call-Put Ratio registered readings well into the overly-bullish category on several January days. Instead of being a contrary indicator, that was a sign that the crowd had finally recognized just how wrong they had been to be bearish on stocks. The crowd is always right on the market in the middle of the move.
This market is about to reach that stage at some point in the next month or two. That's the stage where the bears realize just how wrong they have been. At that point, they will be forced buyers of stocks due to the fact that the only way they have of stopping their losses is to buy back stocks sold short. When the bears start buying, sending the market running to new highs, cautious investors who have parked their investment money in money market funds or Treasury instruments will decide that they are missing out on the big bull market and will transfer those funds into the stock market. That's called the Point of Recognition and it will mark the center of the bull market. Since the bull market is just in its third year right now, that will strongly suggest that we have about three more years to go.
If one had bought just one S&P 500 contract at the beginning of the last Point of Recognition in 1995 (margin requirement of about $3,000) and had held it for the next four years (rolling the position over at each quarterly expiration), it would have had an accumulated profit of $4,000,000 over that period of time -- $1,000,000 per year. Compare that to the day-traders who have to claw and fight their way into the market each day to try to make money. We don't know of any of them who made a cool million dollars a year just by putting their position on auto-pilot.
Is stock market history repeating? Probably not, but it seems to be rhyming very well!
Richard I dont think the YHOO chart you made exemplifies a WW. Furthermore, make sure with that YAHOO chart that you have identified WW's in the right trend. It seems to me that the yahoo chart you made would be in the wrong trend even if it was a WW. This would severely diminish the reliability of the chart you made...
COMPX...
Thought I would mention something about the COMPX again. Although the candlestick today doesn't say too much by itself, it could be the start of a bigger correction. I would certainly see a correction back to the 13 day ma and possible the 50 day in the medium term.
Hi Everyone,
I have been trying to post a chart of the Nasdaq (COMP) but I don't know how on the Technical Analysis and Stock Picking board from YESTERDAY. I think the nasdaq will either break into a flag (bullish continuation) to go higher - or may break down to the lower resistance of just below 21. It is certainly at a resistance point.
Sorry I can't post a chart. If you draw do a chart for Nasdaq (COMP) for 2 years you will see three perfect tops lined up to 2260. There are also three perfect bottoms (a wedge I believe). The bottom is around the 2060 or so. This lines up perfectly with Calvens WW hyposthesis. Can someone take a look at it and see what they think? Take a look at the Technical board and you will see a quote I put there from an analyst that believes the market is overbought according to VIX and TRIN (whatever that is).
WW taking more shape. Point 6 is valid!
The weekly technical resistance we discussed yesterday began to make itself felt on Monday, and despite strong retail sales data over the weekend the retailers were rather severely punished. This was discouraging to some investors considering that oil was down two bucks and the market tends to take heart when oil falls, as it directly impacts the consumer in a positive manner. Much of the leadership for the market however, has come from mid-caps, especially energy names, and when they sell off and other sectors don't benefit from capital rotation, then the market as a whole swoons. That's what happened on Monday, as the profit-taking was broad-based.
Sales of existing homes fell 3.7% in October and there is now a great deal of awareness about the extent to which equity extraction has supported the U.S. consumer and therefore the economy and the stock market. That figure appears to be around $700 billion or 7-8% of annual income for the average homeowner. This is old news to TSR subscribers. Despite the 3.7% drop, the long-term trend in existing home sales is still up, having gone from an annual rate of 5 million to 7 million over the last 4 years.
Meanwhile, the percent of equity for the average homeowner has fallen steadily for the last 30 years, and now sits at 54%. In other words, drawing an analogy to an equity trading account, the average homeowner is operating this investment at full margin. Given that there are more than 20 metropolitan regions in the U.S. that experienced greater than 20% appreciation in home prices in the last year, with some such as Phoenix rising 55% over that period, it is not surprising that the equity percent has fallen. The wealth effect for this amount of equity appreciation remains unquantifiable but it is real. Moreover, we also know that this type of real estate appreciation is not just a U.S. phenomenon; it is happening globally. We are in the midst of a worldwide economic boom. At some point all the good news will be priced in, but we don't think we are there yet. We anticipate more euphoria and more violent price swings the top.
As the market has begun a correction, we have six charts below to give you a sense of the big picture. Briefly, both the large caps and the small caps are undergoing tests at important resistance. Some of this resistance is due to trading patterns over the last two years but for the Nasdaq and Nasdaq 100 there is even a resistance element from the two tops made in May and December of 2001.
This is an important test and there are two ways to analyze it: price/volume behavior and market internals (the A/D and new 52-wk highs and lows). In terms of price, the key number to watch on the S&P 500 is 1247. We don't want to see that price support taken out on a closing basis, especially with any virulence. On the Nasdaq, ideally we want 2232 to hold on a closing basis, which is just 7 points lower than Monday's close. That is not much wiggle room for the 4-letter crowd. Watch the semiconductors, which will tell the tale for the Naz. If the SMH can stay above $37 on a closing basis we are locked and loaded for a continuation of the 4-letter rally.
We also use market internals to gauge the underlying health of the market and so far the bull is doing just fine. These indicators are telling us that we are in a pullback similar to the one we had in late June. At that time the market had advanced fairly steadily for 27 days from the May 16 reversal and experienced two days of rather intense selling. That selling led to a two-week base that resolved positively on 7/7. As of Monday, we had rallied for 27 days from the 10/19 reversal day, so we are due for a similar shakeout. The fact that this test comes when the S&P 500 is at weekly resistance makes it more significant, however.
COMPX needs to hold the upsloping momentum channel support line...
The NAz held support, just closing near the 10 day MA trendline with a Hammer. Also the down days have been on lower volume.
Dec. 1st is historically a bulls day. We'll see, so far so good.
COMPX retesting the 1-4 resistance line for a second time...
Very interesting stuff guys.
I have almost finished reading a book by John Mauldin (Bullesye Investing).
He's a Manager of Fund Managers and puts out a free e-mail newsletter ( www.frontlinethoughts.com ).
Wordy, but worth the time.
He forsees the NASDAQ falling below the DOW in the future.
You might be seeing the beginning of this.
I've got a couple of puts on QQQQ just in case.
Good luck!
Gman
The COMPX is currently in a momentum upchannel. It is also continually banking into the 1-4 WW resistance line. If you look up a few posts i have drawn it out. When the momentum upchannel support line is broken the COMPX will see a nice correction...
Personally energy as a whole is bottoming. Oil will bottom between 50-55 and both natural gas and unleaded gas have broken short term downtrends. Oil is back folks....
When energy bottoms (as determined by big time money managers) profit taking will occur in the COMPX...
>:D
COMPX just recently broke its momentum upchannel today...
12/08/05
Mini WW developing on top?
BTW SVA is NOT a WW... >:D
Hey folks I fixed the ww diagrams so they show the trend leading into the ww pattern!
sorry for the confusion.
cal >:D
After breaking above the the trendline, the Nasdaq fell back into the ascending channel. >:( It's possible that the Nasdaq is headed to the bottom trendline.
I thought the headlines were good news last week, but apparently not. It is almost as if the traders are planning to get a head start closing out positions for the expected /impending bear market on everyones mind. ::)
Well, the Santa Claus rally continues, but I would recomend that we don't get too greed here. Charts are hanging on, but volume will be low the next week. Be careful of high flyers here. Here are my latest chart updates.
WOW! Near perfect hit of the 1-4 line!
COMPX update...
Today's candle filled the gap, now it's tracking back down towards the 1-4 support line.
Update
Time for a COMPX update - things are getting ugly... :'(
-The Nasdaq managed to make a strong intra-day reverse.. bouncing off of a potential triangle bottom ~ 2100 on increasing volume. This is the first time since the drop that the NASDAQ has reacted positively to a support trendline. When this happens it is possible to see a nice rally.. potential target is the 200ma (~2230). Support is near @ 2100 and 2065... close support adds to rally possibility.
How to use this analysis?
1st thing I want to do is tighten stops. The reason being if you think you have found a bottom.. it needs to hold.. and so does the recent lows of your stocks. This guards against a powerful breakdown which would prove your analysis incorrect.. or that you are simply not holding the stocks the market favors(and you want to be knocked out of these so you have room for the right ones)
2nd thing I want to do is see which stocks are reacting positively to this market move today.. and if they are not extended, it is time to buy.
I have a bullish bias now on the markets... because:
1. a strong reaction to support on an intraday reverse with volume
2. support is nearby.. and if broken I will be proven wrong with minimal damage.
-Trade it good 8)
Here is the zoomed in chart:
(http://www.3stocksonfire.org/stockcharts/Nasdaqq.jpg)
By analyzing the market, I use a tool and it is very simple tool indeed and I also use this to buy stocks.
To be bullish in the market, the price must close above the 50sma daily scale at least...
& a quick glance on the weekly chart by using MACD Lines & MACD Histogram you can easily Identify where the market is heading.
Right now, the market is kind of scary a break of that bearish pattern or the 200ema weekly scale willl put Nasdaq under $1,950...
like EliteG said tighten your stops if you are in the long side.........
This looks like a nice tool Terliso... ;) On my chart notice how I am very zoomed in to the short-term chart while your charts are showing longer-term trends. As long as you trade longer-term plays your method is fine but remember that the 50 ma has to be broken sometime...
I am looking for a quick sharp move upwards hopefully to the 200ma level(perhaps motivated by good earnings).. After that it will be time to re-analyze 8) So a 100 point upside call vs 40points to be proven wrong.. better than 2:1 ratio. Lets rock! 8)
Surely looks good on a short term look but on a longer look it has more pessimistic signs. Prices 50 day average remains well below the 200 day average and the gap between the 2 are growing rather than shrinking.
Momentum heads more into negative territory. and MACD's faster leading line is crossing back under the trailing average,a combined signal.
This indicates price is about to enter into a four day downstroke about 80 points.
A good time to short the Nasdaq.
Quote from: Terliso on July 11, 2006, 10:40:22 PM
To be bullish in the market, the price must close above the 50sma daily scale at least...
Quote from: eliteG on July 12, 2006, 01:07:53 AM
This looks like a nice tool Terliso...
Yup, Nice tool ;)
Quote from: eliteG on July 12, 2006, 01:07:53 AM
On my chart notice how I am very zoomed in to the short-term chart while your charts are showing longer-term trends. As long as you trade longer-term plays your method is fine.
Actually I'm using that tool for medium-term plays & it works just fine.... (1 to 6 months play)
Quote from: eliteG on July 12, 2006, 01:07:53 AM
but remember that the 50 ma has to be broken sometime...
Ohh yeah, absolutely... Everytime the market breach the 50sma (daily chart) in the downside for me that's always a call to be prepare, It's either the market continue to go up or go down. Unfortunately, this time the market chooses to go down.
The market is going crazy :( .....We haven't seen the bottom yet... be alert my fellow traders 8)
Hi,
We could have a bullish correction in Nasdaq (1-4 week)..That what chart seems to indicate if price break triangle...
8)
An analysis of the NASDAQ Composite: which has broken out from a head and shoulders bottom. The head and shoulders bottom, like the head and shoulders top, is a reliable reversal pattern with only a 5% failure rate according the Bulkowski's Encyclopedia of Chart Patterns. The head and shoulders bottom is the exact inverse of the head and shoulders top and the pattern is clearly revealed in the following 6-month chart of the NASDAQ Composite.
The breakout occurred on Tuesday last week as the index broke through the neckline. As with the H&S Top, the neckline is drawn through the two peaks between the three troughs and the target after breakout is obtained using the measure rule. The measure rule takes the difference between the neckline on the date the 'head' is set and the low on that date. In this case, the measure rule gives a target of 140 and the neckline on the breakout day was 2090. Adding 140 to 2090 gives us a target level of around 2230. Bulkowski reports that 83% of these patterns achieve their target, so there is an excellent chance that the NASDAQ composite will rise another 66 points (3%) to reach that level. It it does so, it will break through the 200 day moving average and our market signal will return to 'enter'. Given the steep gains last week, it is not likely that a rise to the 2230 level will be achieved without a pullback on profit taking and we will probably see a test of support at around the 2125 level (the peak just before the right shoulder, which was resistance but now becomes support).
************************************************************************
Head and Shoulders Bottom (Reversal)
The head and shoulders bottom is sometimes referred to as an inverse head and shoulders. The pattern shares many common characteristics with its comparable partner, but relies more on volume patterns for confirmation.
As a major reversal pattern, the head and shoulders bottom forms after a downtrend, and its completion marks a change in trend. The pattern contains three successive troughs with the middle trough (head) being the deepest and the two outside troughs (shoulders) being shallower. Ideally, the two shoulders would be equal in height and width. The reaction highs in the middle of the pattern can be connected to form resistance, or a neckline
The price action forming both head and shoulders top and head and shoulders bottom patterns remains roughly the same, but reversed. The role of volume marks the biggest difference between the two. Generally speaking, volume plays a larger role in bottom formations than top formations. While an increase in volume on the neckline breakout for a head and shoulders top is welcomed, it is absolutely required for a bottom.
Head and shoulder bottoms are one of the most common and reliable reversal formations. It is important to remember that they occur after a downtrend and usually mark a major trend reversal when complete. While it is preferable that the left and right shoulders be symmetrical, it is not an absolute requirement. Shoulders can be different widths as well as different heights. Keep in mind that technical analysis is more an art than a science. If you are looking for the perfect pattern, it may be a long time coming.
Analysis of the head and shoulders bottom should focus on correct identification of neckline resistance and volume patterns. These are two of the most important aspects to a successful read, and by extension a successful trade. The neckline resistance breakout combined with an increase in volume indicates an increase in demand at higher prices. Buyers are exerting greater force and the price is being affected.
Traders do not always have to chase a stock after the neckline breakout. Many times, but certainly not always, the price will return to this new support level and offer a second chance to buy. Measuring the expected length of the advance after the breakout can be helpful, but don't count on it for your ultimate target. As the pattern unfolds over time, other aspects of the technical picture are likely to take precedent. Technical analysis is dynamic, and your analysis should incorporate aspects of the long, medium and short term picture.
ALERT on Nasdaq...
For me bullish correction is end...Sold your positions if you habe bought stocks and became Bearish....
Hi,
Fibonacci numbers and Support/Resistance CAN BE COMBINED to find the future right way of the market...
In short term horizon, we have a pullback..
In long term horizon, we have a downtrend.
The market still bullish, it may last 'till the end of october before consolidation takes place ;) :D
I think the resistance of nasdaq below 2,400 will be a support soon ;) IMHO...
Nasdaq & Dow, Two thumbs up!! ;) :D
Quote from: Terliso on October 23, 2006, 02:54:50 AM
I think the resistance of nasdaq below 2,400 will be a support soon ;) IMHO...
Nasdaq & Dow, Two thumbs up!! ;) :D
Now, 4 thumbs up!! he,he,he ;D
The Cross............. :D
Technicals
Record Price High
Record Price Break Out
Last Price Quote is:
1.92%above 13-day MA
5.37%above 50-day MA
Quote from: eliteG on July 11, 2006, 08:17:03 PM
-The Nasdaq managed to make a strong intra-day reverse.. bouncing off of a potential triangle bottom ~ 2100 on increasing volume. This is the first time since the drop that the NASDAQ has reacted positively to a support trendline. When this happens it is possible to see a nice rally.. potential target is the 200ma (~2230). Support is near @ 2100 and 2065... close support adds to rally possibility.
How to use this analysis?
1st thing I want to do is tighten stops. The reason being if you think you have found a bottom.. it needs to hold.. and so does the recent lows of your stocks. This guards against a powerful breakdown which would prove your analysis incorrect.. or that you are simply not holding the stocks the market favors(and you want to be knocked out of these so you have room for the right ones)
2nd thing I want to do is see which stocks are reacting positively to this market move today.. and if they are not extended, it is time to buy.
I have a bullish bias now on the markets... because:
1. a strong reaction to support on an intraday reverse with volume
2. support is nearby.. and if broken I will be proven wrong with minimal damage.
-Trade it good 8)
EliteG's first post on this thread.
"Potential Bottom NASDAQ"
Man you nailed it !! ;) Look at it now..... ;D
Had been overlooking this thread you created.
Technicals
Record Price High
Record Price Break Out
Last Price Quote is:
1.92%above 13-day MA
5.37%above 50-day MA
The DOW & Nasdaq are so hot my friends I can't even think of shorting....let's please savor what we have... follow the BULLS ;) :D ;D
9SMA is running up smoothly with the price, but get ready to go short everything that goes up must come down but >>>>>> not right now just get ready :D
Quote from: Terliso on October 07, 2006, 03:57:03 AM
The market still bullish, it may last 'till the end of october before consolidation takes place ;) :D
This is the last day of october & market is showing some signs if weakness.
Yeah I agree with you terliso market is ready to turn the other way. Im 100% short as of 2 weeks ago, im now up on almost all my positions.
Good Call...bad market.
well we got a huge run after that hound of baskervilles pattern played out perfectly. Is it over?
my take:
Its starting to look like this recent bull run is due for a correction. Price failed to breakout from its prior peak back in april/may and looks to be forming what good be a double top. Shorter term we see price retesting the bottom channel support line today which will need to hold to keep this bull run in tact. Though todays move for the nasdaq was the most bearish move we've seen since July so i think we might see this downward momentum push through this support level soon and when and if that happens, Shorting some stocks will be on my to do list.
I may open up some short positions tomorrow but the safe thing to do would be to wait and see if this channel support holds as im bullish on the market and earnings have been great across the board.
-fous
Let's see if nasdaq will hit the upper channel ;)
Nasdaq if falling from the top of the 2 year channel. :P
Bear is returning....
NASDAQ
Dow Jones
Terliso,
I'm with a group of traders now that are seeing a precipitous drop coming for the Naz in Mid Jan.
Theory being that SOX / Semi conductors which topped around Thanksgiving are headed for a major drop that will drag the Naz down with it
You can see the double top formation, in the Naz - this week may be a good time to either short the Q's or Buy some QID (Bear inverse Naz ETF) due to the low volume volatility
Nasdaq hit's the top of 2 1/2 year channel.
Look for a pullback...I believe. Hopefully not too severe. :-\
Did the Nasdaq just breat out above the 2 1/2 year channel?? If this holds...we're going to party like it's 1999. :o
The conditions today compared to the late 1990s are drastically different (the economy was on its way up.) Fundamentally I would be very worried buying into the higher PE tech stocks. Watch out for profit taking soon, the NAZ has over rallied in my opinion. The QQQQ has gained over 25% in a 6 month span. Even with the GDP lowering, housing market the worst it has been for over 10 years, and the US dollar still weak.... the market is still rallying. I think we are going to have a wake up call very soon.
Quote from: nullzero on January 12, 2007, 05:22:26 PM
The conditions today compared to the late 1990s are drastically different (the economy was on its way up.) Fundamentally I would be very worried buying into the higher PE tech stocks. Watch out for profit taking soon, the NAZ has over rallied in my opinion. The QQQQ has gained over 25% in a 6 month span. Even with the GDP lowering, housing market the worst it has been for over 10 years, and the US dollar still weak.... the market is still rallying. I think we are going to have a wake up call very soon.
You know...I have given up fundamentally thinking about the state of the economy and the market's reaction. That's why I like looking at techincals of the stock market. Avoids the noise of doom and gloom.
Every year we are more and more a part of a global economy and even though I agree with the Economic problems in the United States...growth elsewhere may take the lead. Once again...I don't want to think too much about it...all I see is a break of the two year channel...which in my mind says we are setting up for a new steeper trend. I know a one day break is not a year make but before today I was ready to sell just about everything because I felt we were at the top of the channel. David in the Members corner has a good analysis.
Best of luck
Weeklend Ramblings: I'm betting for more upside
The biggest development this week was that the Nasdaq, which had been stuck in a trading range between 2470 and 2390 for several weeks, finally broke out of it to the upside. For the Bullish crowd this is a positive development.
If the SOX can break out of its Triangle pattern to the upside and rise above its 61.8% Retracement Level just above 490 then this should allow the Nasdaq to follow through to the upside in the weeks ahead.
If the VIX drops back to below the 10 level next week or the week after this could signal a nearing top. The last time the VIX dropped below 10 was back in mid December which led to a minor correction in the S&P 500.
Finally even if we do see a correction develop at some point in the early part of 2007 keep in mind the longer term trend is still upward as the S&P 500 has been making a series of higher highs and higher lows since 2004.
Good trading to all. ;)
I'm also betting for more upside, the nasdaq is making a bounce very strong... ;)
--->Nasdaq PPS is also bounced off from 50sma daily chart, very strong move...take a look at the second chart below.
----> The 9sma in the weekly chart is just below at nasdaq price providing support & looks ready for another upside rally. ;)
Market not good, I think it is time for pullback..
Quote from: Terliso on February 12, 2007, 04:19:01 PM
Market not good, I think it is time for pullback..
Terliso, been thinking the same thing myself.
Getting a little nervous re the whole market, finding it hard to go long in general as I feel we need a pullback. Haven't had any long term back and fill action in about a year. We are also heading into that sell in spring (May) scenario which just about fits the time frame and many of the indicators on the charts. However nothing has really failed yet, just looking a little extended and starting to round over on many indicators.
Simple chart below showing the index majors on the weekly. Although some individual stocks can do this sort of thing for very very extended periods I don't think all the majors can do it.
I feel the pressure building, irrational exuberance, the longer it goes the larger and faster the pullback / correction.
JMHO, subject to change without notice
Quasi
Yeah, been wondering this too. I started a thread in the members corner last Friday to discuss whether a correction/pullback is about to start. There is some good debate going on there.
My take is that today was not as strong as it looks. Volume was weak, and the $NDX is still under its 50sma. The Dow and S&P are strong right now, but I think the Nasdaq would lead the correction. The very fact that today was up on low volume sets up the possibility for another distribution day this week. That would make 4 in 4 weeks for those of you that follow IBD and Bill O'Niel.
Quote from: Terliso on February 12, 2007, 04:19:01 PM
Market not good, I think it is time for pullback..
Oh my, my! here we comes! >:D
---Dow Jones broke the 50sma today for the first time since August,
and Nasdaq is breaking again the 50sma. Though, both volume are weak.
---Now, MACD bearish cross in the weekly chart, that is something to watch for.
Goodluck guys, if you are still long in the market.
Hi all, interesting discussion.
I've also been playing around with some index charts since last fall. Just trying to spot when things are getting alittle ahead of themselves and ready for a pullback. I almost bought some QID's a week ago but was a little weak on the trigger finger. Didn't really expect it to start like it did on Tuesday, but it's started now. I did buy some QID's today as the gap on the Nas filled, didn't think it would go much higher today.
In case you are not familiar with the QID, it is one of a family of ETF funds by Proshares. They trade like stocks and have a very small management expense. In the case of the QID it is a leveraged short fund of the Nasdaq QQQQ's, so when the Naz goes down it goes up and as its leveraged it will go up faster than the QQQQ goes down. Sounds great but be careful it will also go down quicker. They also have an unleveraged version called the PSQ. http://www.proshares.com/
I was in the bull camp up until last fall when I became a nervous bull and started to pull back to about 50% cash. Today I'm quickly converting to Bear mode, not fully there yet, waiting for the dust to settle and creating my short list just so it's ready. That was some kind of major action on Tuesday, really showed what kind of strength this house of cards has, NOT MUCH. I've been reducing my long side speculative positions on the rallies the last couple of days. Still holding my O&G and metals as I'm still bullish on those sectors, but only in selective stocks.
I got a real laugh today as on CNBC Maria B. announced, "the correction is over, glad it happened quickly and we are returning to full bull mode". YA RIGHT. Don't watch the talking heads much as I don't like how they change their position daily by analyzing data from the last few hours and extrapolate it into what will happen over the next year or so.
In my opinion we haven't even started the shake out yet and have a long ways to go before a new base can be made to take another run at the highs. But with the huge chart damage that has been done this will take a while, lots of ups and downs, on the way down. I started investing in Dec/Jan 99/2000, so I got my training by fire quickly. Same stories as today, stocks are worth the valuations, today is the new bottom, can't go any lower etc etc. Well I owned all the high flying tech's and Enrons and Worldcoms etc, bought and sold and bought and sold most of the way down. So I lost some but no where near as much as the buy and hold guys who kept averaging down. It was a very good learning experience, my best luck was I held over 50% in O&G during that time which balanced out a little more than half my losses.
Find below a couple of my updated charts on the index action for the Naz and the S&P. Sorry you will have to scroll them (or click and open in separate window), as they were made for a different board. I wish Ramsburg would allow the site to operate in percent width rather the current fixed width at 600, which means max chart is 520.
happy trading / investing
Quasi
Charts COMPQ/INDU/SPX
Wait & See...
http://financialconsulting.blogspot.com/2006/11/continua-la-euforia.html
http://financialconsulting.blogspot.com/2006/11/compq-nasdaq-composite.html
http://financialconsulting.blogspot.com/2006/11/s-500-index-spx.html
I'm hearing a lot of talking heads announcing the correction is complete, all is well and great buying opportunity. With these guys I'm a bit contrarian as they always tell you to buy at the top and sell at the bottom. Don't really pay much attention as they are always analyzing what happened in the last 24 hrs and extrapolating it to what will happen over the next year. Ever notice how their long term predictions swing rather wildly all over the place.
Anyway I basically started leaning into the Bear camp last fall and now expect to be there for several months.
For the Nas I don't think we will see any bounces above the close of that first weekly low, at least based on how the last few corrections have played out. In the past they have pretty well just worked down to the lower trend line without any significant rallies. I think we will get there in the next couple of months, then will it hold, not really sure at this point.
For the S&P things have been a little different in recent corrections, there have been a few rallies. Probably the flight to quality out of tech sort of thing, but eventually it too also reaches the lower trend line.
So time will tell, this is all JMHO and subject to change without notice. Sorry for the wide charts I made them for another site that supports them.
Quasi
Mentioned a few things over on the 3SOF fire market open board today. Another little bounce, just like the last few days without much follow thru. But I'm expecting this sort of action and could retrace a bit more before we have a confirmation of trend or I think more likely we will get a confirmation that the correction is to be more major or actually become more like a bear.
The full post is here, but I'll put a summary of the charts I didn't have time to post earlier, here for convenience.
http://www.3stocksonfire.org/trading/index.php?topic=9117.msg91753#msg91753
When I look at the major index's there was a critical event which caused major technical damage to the charts. (daily and weekly charts). This will take some time to correct, we all expected a retrace after last Tuesday and that is whats happening, like you said "line in the sand" is the mid point of the first big red candle. Well the last couple of days we stalled at the FIB 23.6% level, today the high so far is stalling right around the 38.2% level. In order to just get up to the mid point of the big red candle we will need to get into the 50% to 62.8% retrace range. There is a lot of overhead resistance and I think huge resistance to set new highs on the major index's for quite some time. For me last Tuesday really showed how fragile this house of cards really is, at this point.
Sorry the charts are a little large, they were done for another board, might be easier to pull em up in a separate window than scroll.
Anybody got other ideas?
JMHO
Quasi
Hey Quasi,
I've been having a look at charts for a lot of the market indices (Dow, Compx, QQQQ etc) and also for many stocks as well and what I keep seeing are rallies back to resistance over the past week after bottomig on Monday. Friday looked to me to be a breakdown day, and intraday charts on most of these indices showed a breakdown of a week long rising wedge. Obviously we are at a key turning point right now. Either the market rallies above this resistance, and I suppose we could see a bit of knocking on the head of it, or it sells off below the previous week's lows and we enter into a general market decline. I could easily see the NAZ losing 200 points or more over the next few months as this move plays out.
Anyway, sorry the charts look a bit rubbish, Stockcharts is down. But I think it is relly important that we keep abreast of this situation, as we are all going to be affected by it in our trades
target 3100 points ;D
Nasdaq technology has been my focus for a long time...they need to step up and lead the markets...internals suggest weak breakout on Nasdaq.
We have been sideways since May...we could go sideways until October as the market consolidates waiting for 3rd quarter confirmation.
Yesterday was too fast, and the market needs to digest some of this move and let the internals catch up some more.
Technicals
Record Price High
Last Price Quote is:
2.05%above 13-day MA
4.28%above 50-day MA
NASDAQ COMPOSITE (Nasdaq:^IXIC)
Index Value: 2,707.00
Trade Time: 5:16PM ET
Change: 5.27 (0.20%)
Prev Close: 2,701.73
Open: 2,696.96
Day's Range: 2694.09 - 2707.64
52wk Range: 2,147.44 - 2,707.64
The major indices are breaking the downtrend they've been in since mid-July. Let's see if this can keep up.
Nasdaq's Losses Mount As Big Tech Names Slide !
Friday 11/09/2007
The Nasdaq Composite Index continued to sink Friday, losing another 2%, as bellwethers Google, Research In Motion and IBM extended their losses. The technology-heavy index is on track to lose nearly 7% in three days.
In morning trading, the Nasdaq Composite fell 52.67 points to 2643.33. It declined 4.57% in the last two sessions, its biggest two-day fall in more than five years as investors fled large tech stocks that had surged in recent months.
----------------------------------------------------------------------------------------------
This is the danger in trying to catch the bottom in one of these bombs.......
Probably will break under 2600, before all is said and done.
QID... >:D
Volatility Index - NASDAQ ($VXN)
Top Stories
Google, Microsoft Sink Nasdaq.......
Wall Street mixed after earnings reports
Friday July 18, 12:49 pm ET
Stocks mixed amid disappointing tech results, upbeat report from Citigroup
NEW YORK (AP) -- Wall Street turned mixed Friday as financial stocks rose in response to Citigroup's upbeat results and tech stocks fell on disappointing earnings at Google Inc. and Microsoft Corp.
Stocks traded in a narrow range after a huge two-day rally lifted the Dow Jones industrials by more than 480 points. Investors were concerned about earnings; though Citi's loss was less than analysts had forecast, the market was clearly let down by the tech reports.
Google's results were lower than expected, the result of the weakening economy hurting advertising revenue, while Microsoft missed forecasts by a penny. Also, Advanced Micro Devices Inc.'s chief executive stepped down after the chip maker posted a wider-than-expected loss.
Citi reported a $2.5 billion second-quarter loss due to write-downs tied to deteriorating credit markets. The results surpassed projections, and helped to mitigate some of the market's concerns following a big loss from Merrill Lynch & Co. reported late Thursday.
Meanwhile, oil prices rose as news of an output cut in Nigeria helped to halt the sharp decline in prices that began three days ago. A barrel of light, sweet crude tacked on $1.03 to $130.32 on the New York Mercantile Exchange.
"Considering the strength we had in the past few days, the market is handling itself quite nice and trying to hold on to the gains," said Peter Cardillo, chief market economist at New York-based brokerage house Avalon Partners. "Investors are also positioning ahead of a barrage of earnings and economic reports due next week."
In midday trading, the Dow rose 17.18, or 0.15 percent, to 11,463.84.
Broader stock indicators were mixed. The Standard & Poor's 500 index fell 1.80, or 0.14 percent, to 1,258.52, and the Nasdaq composite index dropped 25.64, or 1.11 percent, to 2,286.66.
Bond prices were little changed Friday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 4.08 percent from Thursday's 4.00 percent.
The dollar was mixed against other major currencies, while gold prices fell.
With no economic data slated for release Friday, investors were basing their decisions on the week's stream of earnings reports.
Google fell $47.07, or 8.8 percent, to $486.30 after it posted disappointing results late Thursday. Microsoft dropped $2.02, or 7.4 percent, to $25.49, while AMD fell 61 cents, or 11.7 percent, to $4.68.
Financial stocks were mixed after Citi's results. Merrill shed 47 cents to $30.25, while Citi added $1.77, or 9.8 percent, to $19.74.
Honeywell International Inc. fell 2 cents to $50.90 after it reported second-quarter earnings rose 18 percent and surpassed forecasts. The aerospace company also boosted its 2008 forecast.
Mattel Inc. surged $2.17, or 12 percent, to $20.46 after the toymaker said its reported profit was cut in half, but still beat Wall Street expectations.
Israeli drugmaker Teva Pharmaceutical Industries Ltd. said Thursday it will buy rival generic drug company Barr Pharmaceuticals Inc. for more than $7 billion, in a move to expand its presence in U.S. and Eastern European markets. Teva rose $3.38, or 8.2 percent, to $44.43, while Barr shot up $6.33, or 11.1 percent, to $63.50.
The Russell 2000 index of smaller companies fell 2.03, or 0.29 percent, to 694.60.
Declining issues were about even with advancers on the New York Stock Exchange, where 920.1 million shares exchanged hands.
Overseas, Japan's Nikkei stock average fell 0.65 percent. In afternoon trading, Britain's FTSE 100 rose 1.70 percent, Germany's DAX index added 1.78 percent, and France's CAC-40 rose 1.74 percent.
Reuters
Wall Street rises on data and tech shares
Wednesday February 4, 10:43 am ET
NEW YORK (Reuters) - Stocks added to gains on Wednesday as a reassuring report on the services sector overshadowed another stream of disappointing corporate profits and outlooks.
The Nasdaq outperformed the other indexes, gaining more than 2 percent as big-cap technology companies, including Microsoft (NasdaqGS:MSFT) and Apple (NasdaqGS:AAPL) rose.
The Dow Jones industrial average (DJI:^DJI) added 74.87 points, or 0.93 percent, to 8,153.23. The Standard & Poor's 500 Index (^SPX) rose 12.45 points, or 1.48 percent, to 850.96. The Nasdaq Composite Index (Nasdaq:^IXIC) was up 32.58 points, or 2.15 percent, at 1,548.88.
S&P, Nasdaq dip as housing plan fails to cut fear
Wednesday February 18, 2009, 4:50 pm EST
NEW YORK (Reuters) - The S&P 500 and Nasdaq closed marginally lower on Wednesday as President Barack Obama's $275 billion plan to prop up the housing market failed to stem worries about the economy, and bleak housing data highlighted the deepening recession.
Indexes see-sawed in a narrow range throughout the day, but the S&P and Nasdaq ultimately failed to hold gains despite bargain-hunting that sent investors to the perceived safety of defensive stocks, such as technology and consumer staples.
The Dow eked out a gain, driven by defensive shares such as Wal-Mart Stores (NYSE:WMT - News), keeping the index from breaking through the November 20 bear market low.
Adding to the somber mood, the Federal Reserve slashed its economic forecast for 2009 and several companies, including Deere & Co (NYSE:DE - News), posted dismal results. Deere fell almost 4 percent.
Record low housing starts and applications for building permits for January set the tone early, overshadowing Obama's plan pledging up to $275 billion to help families refinance their mortgages to stem foreclosures.
"There aren't a lot of specifics, running into the same problem as you did with Geithner and his speech a week ago," said Al Goldman, chief market strategist at Wachovia Securities in St. Louis, speaking of the keenly awaited housing plan.
"The biggest problem in the market, in my opinion, is a major lack of confidence and disappointment that the current administration really hasn't done anything yet about the toxic assets held by banks."
The Dow Jones industrial average (DJI:^DJI - News) added 3.03 points, or 0.04 percent, to 7,555.63. The Standard & Poor's 500 Index (^SPX - News) was off 0.75 points, or 0.10 percent, to 788.42. The Nasdaq Composite Index (Nasdaq:^IXIC - News) edged down 2.69 points, or 0.18 percent, at 1,467.97.
Since the beginning of the year, the broad S&P 500 is down close to 13 percent; after having risen 20 percent from the late November lows, it is now up almost 5 percent from that mark. Tuesday's sharp drop took indexes closer to the bear market lows and prompted some bargain-hunting on Wednesday.
Caterpillar Inc (NYSE:CAT - News) ,the world's biggest maker of construction equipment, was the top drag on the Dow, down 1.9 percent to $28.44.
Shares of Deere & Co (NYSE:DE - News) dropped 3.8 percent to $32.23 after the farm equipment maker posted a quarterly profit that missed forecasts and cut its outlook.
The dismal housing data pulled shares of home builders down, with the Dow Jones home construction index (DJI:^DJUSHB - News) shedding 5 percent. Luxury home builder Toll Brothers (NYSE:TOL - News) fell 4.1 percent to $17.16, while D.R. Horton (NYSE:DHI - News) declined 5.4 percent to $8.44.
On the upside, Wal-Mart Stores saw a second day of gains after Tuesday's better-than-expected earnings, sending the discount retailer up 3.7 percent at $50.00.
Losses on the Nasdaq were cushioned as investors snapped up shares of big cap technology companies, which are seen as having more wherewithal to withstand the economic downturn. Google (NasdaqGS:GOOG - News) was among the top boosts, up 3.1 percent at $353.11.
The Nasdaq Composite incurred the least severe decline of the headline indices, thanks to support from large-cap tech names. The strength in large-cap tech helped the Nasdaq 100 finish the session 0.4% higher.
Still, financial stocks continue to represent the biggest concern for the broader market, and will continue to do so in the coming week.
The Nasdaq is holding up relatively well to this session's selling pressure. Its losses have been limited by the strength of Microsoft (MSFT 18.03, +0.12), Intel (INTC 12.88, +0.20), and Cisco (CSCO 15.12, +0.08). The relative strength of such large-cap tech names has also helped the Nasdaq partially fend off selling efforts in recent weeks; the Nasdaq is down nearly 9% year-to-date, while the Dow is down nearly 16% year-to-date and the S&P 500 is down almost 15% year-to-date.
MARKET FAILS TEST OF JANUARY HIGH.......
A number of other indexes (like the Nasdaq Composite) and sector indexes were stalled at their 200-day moving averages as well. So were numerous foreign stock markets.
It was no surprise then to see global stocks selling off this week. When a market has rallied too far and is ripe for profit-taking, some fundamental trigger usually starts things off. A weak retail report on Wednesday caused stocks to sell off on heavy volume and got the correction started. After a modest bounce on Thursday, stocks fell again on Friday. The result was a weekly loss for all of the major stock indexes.
I also suggested that a pullback to the 50-day moving average was likely and could be part of "right shoulder" in a bottoming formation.
Nasdaq Composite...sitting on the 50-day MA
The S&P 500 put up the best performance of the major U.S. benchmark stock indexes Tuesday afternoon, led by a 12% gain in real estate firm CB Richard Ellis and an 8% advance in Jabil Circuit shares. The Nasdaq Composite and Dow Jones Industrial Average also turned higher before heading back into the red. A disappointing housing sales report countered modest rises in the price of oil and metals, which lifted materials and energy shares. The S&P 500 rose less than 2 points, or 0.2%, to 894.7. The Dow Jones Industrial Average slid 17 points, or 0.2%, to 8,322. The Nasdaq Composite was off 0.2 point at 1,766
The bulls have been in charge since the March lows. Specifically, the NASDAQ has barely cleared a key 38.2% Fibonacci retracement level from the October 2007 high down to the March 2009 low and is now approaching significant gap and price resistance levels as illustrated below...
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=48690)
It is going to be very interesting to see whether the bulls can maintain control of the market as we enter into the worst period of the year historically (mid-July through late September).
Stocks fall in year's lightest volume...
NEW YORK (Reuters) - Stocks fell in the year's lightest volume on Monday as worries about the pace of economic recovery overshadowed data showing a rise in consumer spending and income.
The uncertainty weighed more on sectors associated with growth, including banks and consumer discretionary stocks. Bank of America (NYSE:BAC - News) fell 2.5 percent to $12.32 while specialty retailer Nordstrom Inc (NYSE:JWN - News) tumbled 5.2 percent to $28.72.
U.S. consumer spending rose at the strongest pace in four months in July while a smaller rise in incomes was less than forecast. The expectation that data this week will confirm the economy shed jobs in August also kept investors at bay.
"The consumer doesn't have the capacity to grow at a big rate," said Malcolm Polley, president and chief investment officer of Stewart Capital Advisors in Indiana, Pennsylvania.
"There's no incentive for people to spend. They continue to pay down debt, and that points to slower-than-desired economic recovery."
The Dow Jones industrial average (DJI:^DJI - News) dropped 140.92 points, or 1.39 percent, to 10,009.73. The Standard & Poor's 500 (^SPX - News) lost 15.67 points, or 1.47 percent, to 1,048.92. The Nasdaq Composite (Nasdaq:^IXIC - News) fell 33.66 points, or 1.56 percent, to 2,119.97.
About 5.6 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, the slowest day for Wall Street in volume so far this year.
Chipmakers weighed on the Nasdaq after Intel Corp (NasdaqGS:INTC - News), down 2.2 percent to $17.96, bid $1.4 billion to buy the wireless unit of German chipmaker Infineon Technologies AG (XETRA:IFXGN.DE - News). The deal could reduce Intel's reliance on selling chips to personal computer makers.
The PHLX semiconductor index (Nasdaq:^SOX - News) lost 2.5 percent, its largest drop since August 11.
Shares of United Airlines parent UAL Corp (NasdaqGS:UAUA - News) rose 1.3 percent to $20.71 and Continental Airlines (NYSE:CAL - News) ticked up 0.4 percent to $21.89 after the two won U.S. antitrust approval late on Friday to create the world's largest carrier. Continental and UAL expect the deal to close by October 1.
In other merger-related news, U.S. biotech company Genzyme Inc (NasdaqGS:GENZ - News) rose 3.4 percent to $69.91 after it rejected an $18.5 billion buyout offer from French drugmaker Sanofi-Aventis SA (Paris:SASY.PA - News).
3M Co (NYSE:MMM - News), down 1.7 percent to $79.65, said it would buy Cogent Inc (NasdaqGS:COGT - News), the maker of identification systems, for $943 million, paying a nearly 18 percent premium. Cogent shares rose 24.4 percent to $11.09.
Hewlett-Packard Co (NYSE:HPQ - News) added 1.5 percent to $38.56 after its board approved a buy-back of $10 billion in shares, with at least $3 billion worth of shares to be bought in the fiscal fourth quarter.
U.S. President Barack Obama's attempt to address worries the recovery is faltering appeared to fall short.
Obama said he had discussed additional steps to help the recovery with his advisers, but the speech did not promise any
concrete measures, and stocks extended losses afterward.
Investors were also hesitant ahead of closely watched data on manufacturing, services and the August non-farm payrolls report due later in the week, which are expected to confirm the economy's growth is slowing.
Declining stocks outnumbered advancing ones on the NYSE by a ratio of about 7 to 2, while on the Nasdaq, about four stocks fell for every one that rose.
Overnight U.S. Stock News.......
• Sep S&Ps this morning are up +12.10 points. The stock market yesterday traded on either side of unchanged throughout the day and settled mixed (Dow +0.05%, S&P 500 +0.04%, Nasdaq Composite -0.28%). Bullish factors included (1) carry-over strength from a rally in European stocks after Standard & Poor's said the risk of a renewed recession in Europe is "remote," (2) gains in homebuilders after the larger-than-expected increase in the Jun S&P Case-Shiller composite-20 home price index (+0.3% m/m and +4.2% y/y versus expectations of +0.2% m/m and +3.6% y/y), (3) strength in consumer stocks after the larger-than-expected increase in Aug US consumer confidence (+2.5 to 53.5 versus expectations of +0.3 to 50.7), (4) a rally in bank stocks after the FDIC said US banks posted $21.6 billion in profit in Q2, up +17% q/q and their biggest quarterly profit in nearly 3 years, and (5) the prediction from Cabot Money Management that individual investors a re the least bullish on US stocks since March 2009, a contrarian signal that stocks prices may rally.
• Bearish factors included (1) concern that the US economy is slowing after the larger-than-expected decline in the Aug Chicago purchasing managers index which fell to a 9-month low (-5.6 to 56.7 versus expectations of -5.3 to 57.0), (2) the FDIC report that said US "problem" banks rose to 829 at the end of Q2, up +7% from 775 at the end of Q1, (3) weakness in semiconductor stocks after Goldman Sachs said that Intel's agreement to purchase Infineon Technologies AG's wireless business could give Intel a cost advantage over other semiconductor makers, and (4) the Aug 10 FOMC meeting minutes in which policy makers signaled no plans to resume large-scale asset purchases to bolster the economy.
• Alcoa (AA) jumped 2.2% in pre-market trading as metals prices climbed after China reported stronger-than-expected manufacturing activity in Aug.
• Freeport-McMoRan Copper & Gold (FCX) rallied 1.2% in pre-market trading after copper prices surged to a 4-month high and gold climbed to a 2-month high.
When you have a rip roaring market rally ;)
love how the futures move up like a bottlerocket ;D
before the official jobs numbers are released 8)
CNBC never says anything about that either ???
Next week should tell if it was more than a short covering rally. ;) :D ;D
Nasdaq Winning Streak 8 Days...
Stocks retreated on weak consumer sentiment data but slowly improved the rest of session. Thank to upbeat earnings from Oracle (ORCL) and Research In Motion (RIMM), the Nasdaq rose 0.5% for its 8th straight gain. The Dow and S&P 500 edged up 0.1%, while the NYSE composite slid 0.2%. Volume surged across the board due to expiring options and futures.
Nasdaq Composite...
Today's Opinion, Strong Buy
Support & Resistance
2nd Resistance Point 2,513.98
1st Resistance Point 2,502.22
Last Price 2,496.53
1st Support Level 2,474.41
2nd Support Level 2,458.36
A LONGER-TERM LOOK AT THE NASDAQ COMPOSITE...
With the "troika" of the US mid-term elections, FOMC meeting decision on QE-2, and the US Employment Situation Report having been digested by the markets, we thought it instructive to step back and take a longer-term viewpoint of the NASDAQ Composite. Perhaps by looking at the Composite, we can infer whether or not QE-2 will be successful in terms of raising asset prices in the coming year or years. Certainly the Composite has been a relative laggard since the bubble days of 1998-to-2000, that is until the past year. Thus, it piques our long-term interest, and perhaps more importantly...it will clear and discernible impact our trading strategy.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=49683)
Turning to the monthly chart, we find the multi-year bullish triangle of which trendline resistance is clearly being given - which would argue for new highs years down the road. Certainly recent dour economic prognostications related to money printing et al should be the type of environment in which this should occur. But the fact of the matter is that support levels are holding, while resistance levels are being violated - the hallmark of a bull market. Moreover, the probability for prices extending their gains is rather good the 35-month moving average support level has time and time again over the course of 4-months held up admirably to assault. We are rather impressed by this; and our readers should be too.
Therefore, as long as the 35-month moving average provides support - then one must consider using sharp corrections upon which to accumulate technology shares. Once it does fail, then we'll be inclined to be aggressively short...but not until then. The final fact of the matter is that QE-2 may have some very real long-term unintended consequences - meaning very sharply higher asset prices or "bubbles" once again. And who doesn't like sharply higher asset prices? So...here's three cheers to the "good ole' days" of the 1998-to-2000 NASDAQ rally!
Tech Stocks...
Tech stocks kick off year in rally mode
Tech stocks began 2011 on an upbeat note Monday, closing with broad gains with advances coming from the likes of Apple Inc., Hewlett-Packard Co. and NetApp Inc.
Apple (AAPL 331.04, -0.25, -0.08%) rose $7.01 a share, or 2%, to $329.57; H-P (HPQ 43.66, +0.03, +0.07%) added 64 cents a share to close at $42.74 and NetApp (NTAP 57.60, +0.22, +0.38%) ended the day up by $2.45 a share, or more than 4%, at $57.41.
Such advances helped push the Nasdaq Composite Index (COMP 2,681, -10.27, -0.38%) up by almost 39 points to close at 2,691. The Philadelphia Semiconductor Index (SOX 415.58, +0.53, +0.13%) rose almost 1% and the Morgan Stanley High Tech 35 Index (MSH 672.35, -1.49, -0.22%) closed with a gain of 1.4%.
Sprint Nextel Corp.(S 4.47, +0.02, +0.45%) shares rose 28 cents, or 6.6%, to close at $4.51. The No. 3 wireless-phone network operator said it wouldn't buy debt for network partner Clearwire Corp.(CLWR 5.27, -0.03, -0.61%) . Clearwire is trying to sell debt as part of an effort to raise capital this year.
Micron Technology Inc.(MU 8.46, +0.02, +0.24%) shares rose 26 cents, or 3.2%, to $8.28. Lazard Capital maintained a hold rating on Micron, saying in a research note that the company should benefit from positive pricing and demand trends for NAND memory processors.
Two notable decliners were online travel sites Expedia Inc.(EXPE 24.49, +0.07, +0.29%) and Orbitz Worldwide Inc.(OWW 5.19, -0.22, -4.07%) , as Soleil Securities cut their ratings to hold from buy.
The downgrades, Soleil Securities analyst Jake Fuller said, are based in part on disputes between the companies and AMR Corp. (AMR 8.10, +0.18, +2.27%) , the parent of American Airlines. Expedia and Orbitz aren't listing American's fares, with the carrier reacting to fees it pays for such listings.
Expedia shares fell 30 cents to close at $24.79, while Orbitz gave up 18 cents a share, or more than 3%, to close at $5.41.
Social-networking giant Facebook got some attention following reports the privately held company has reportedly received a $450 million investment from Goldman Sachs Group Inc.(GS 173.15, +0.07, +0.04%) and $50 million from Russia's Digital Sky Technologies, placing the online social-networking site's valuation at $50 billion. Reports said that Facebook could use the funding for product development, hiring of new staff and acquisitions.
Some IPO experts said the investments show Facebook doesn't have to do much to get outside funding, and that the company isn't likely to go public before late 2011, at the earliest.
Nasdaq Composite Index...
TRADERS ARE ALL IN
Complacency in the market was setting records this past week. The technicals? They look great. But can the market keep moving higher short -term when options traders are betting on it en masse? Well, maybe, but if you enter stocks on the long side at this level, please understand the risk bar has been raised significantly. Don't misunderstand my message. I'm intermediate-term to long-term bullish and have been that way since shortly after the bottom formed in March 2009. There have been short-term periods, however, when it's made sense to take a more conservative approach to trading. ANY time complacency grows, I get nervous. Why? Because market makers are VERY good about making money and they do it at the expense of you and me. As more and more folks trade call options on a relative basis, the odds grow that a near-term top is fast approaching.
Tons of net call option premium evaporated the last three trading days. The NASDAQ lost 3% of its value from Wednesday's open to Friday's close and that shouldn't surprise anyone who follows max pain, which I define as the point at which in-the-money call premium equals, or offsets, in-the-money put premium. It's generally in the market makers' best interests for prices to gravitate towards max pain into option expiration Friday. So between the complacency and max pain, the bulls faced a huge short-term hurdle as January options expired Friday. Unfortunately for the bulls, the market makers won again. In my view, it's another form of TARP for the financials. The good news for the Goldman Sachs of the world is that this TARP money doesn't have to be repaid. Wonderful! (sarcasm intended)
Since 2003, the CBOE has been providing information relating to the equity only put call ratio (the "EOPCR"). The average daily EOPCR since 2003 is .65. The 60 day SMA of the EOPCR is at .54. This is the lowest reading for this 60 day SMA on record. The first such reading occurred on Tuesday. Take a look at a one month chart on the NASDAQ:
Nasdaq Composite...
•Market Snapshot: U.S. stock indexes open near 29-month highs at MarketWatch(Mon, Feb 7)
Stocks finished higher Monday, propelled by a flurry of deals news, strong earnings and signs of economic activity returning to normal in Egypt.
Technicals
Record Price High
Nasdaq Composite...
Wall Street flat, waning volume points to top.
Uranium stocks are catching fire
get in URRE before the breakout move!
Nasdaq Composite Index.......
Technicals
Record Price High
Nasdaq Composite...
A potential bear nugget
If price confirms a bearish divergence, then a correction is born.
Over the past year, the only two other times this occurred was the April and November tops. Both went on to touch trend support(S2) however, one led to an ugly summer correction and the other was mild yet a correction none the less.
The 2850 line is acting as resistance which will likely force a correction of some sort. I don't think the market's running away from anybody here and certainly the chart remains bullish till it isn't. So for now price will point the way.
Technicals
Record Price High
Last Price Quote is:
1.29%above 13-day EMA
4.46%above 50-day EMA
RS Rating: N/A
Nasdaq Composite...
With over 3,000 components, the NASDAQ Composite is a stock market index comprised of all the common stocks and similar securities listed on the NASDAQ stock market. In terms of indicating the performance of technological companies and growth companies, the NASDAQ Composite is the most followed in the United States, although is it not solely a U.S. index.
The three major U.S. stock indexes hit highs for the year, and the Nasdaq was at its highest since late 2007...
NEW YORK (Reuters) - Wall Street rallied and the S&P 500 hit its highest level since June 2008 on Tuesday as a flood of positive corporate results added to increasing optimism about the economic growth outlook.
Ford Motor Co (NYSE:F - News), 3M Co (NYSE:MMM - News) and United Parcel Services Inc (NYSE:UPS - News) were among the bellwether names to impress, continuing a string of better-than-expected results. 3M and UPS also raised their full-year profit outlooks, contributing to the bullish sentiment.
Shares of 3M, a Dow component, rose 2.2 percent to $96.22 while UPS was up 1.2 percent at $74.52. Ford advanced 2.5 percent to $15.92.
"The very positive outlooks from today means things look very bright going forward," said Peter Andersen, portfolio manager of the Boston-based Congress Asset Management.
"I was frankly delighted with Ford's results, and the market is taking some of its cue from the strength there," added Andersen, who helps manage $7 billion and owns Ford.
Though 73 percent of New York Stock Exchange issues were in positive territory, there were some disappointments. Coca-Cola Co (NYSE:KO - News) fell 1.7 percent to $66.61 and was the Dow's biggest loser after its results were hurt by lost Japanese revenue. U.S. Steel Corp (NYSE:X - News) and Netflix Inc (NasdaqGS:NFLX - News) also fell after results.
The Dow Jones industrial average (DJI:^DJI - News) was up 108.83 points, or 0.87 percent, at 12,588.71. The Standard & Poor's 500 Index (^SPX - News) was up 11.55 points, or 0.87 percent, at 1,346/80. The Nasdaq Composite Index (Nasdaq:^IXIC - News) was up 20.85 points, or 0.74 percent, at 2,846.73.
The three major U.S. stock indexes hit highs for the year, and the Nasdaq was at its highest since late 2007, erasing losses after a drop in February. But some caution remained a day before a press conference by U.S. Federal Reserve Chairman Ben Bernanke.
The conference follows the Fed's last policy statement before it is expected to stop its quantitative easing program at the end of June. Investors have concerns that the end of that program could remove support for buying stocks.
Trading volume was weaker than average, with 3.94 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq as of 1 p.m. EST.
"There's some apprehension about what to expect," Andersen said. "People are anxious to reinvest in equity markets, but they're tentative about the Fed, which is why you've been seeing such low volume lately."
U.S. consumer confidence rose in April as inflation expectations eased somewhat and consumers felt better about the short-term outlook, according to a private-sector report. The data helped ease concerns that the recent rise in oil prices have started to hit shoppers.
NEW YORK—Stocks suffered their biggest declines since the middle of last year, as a slew of downbeat reports prompted fears the economic recovery is running out of steam.
JUNE 1, 2011, 5:39 P.M. ET
The technology-oriented Nasdaq Composite fell 66.11 points, or 2.3%, to 2769.19.
"There isn't a lot of confidence to begin with, so it doesn't take much to push people away from the table," said Ted Weisberg, a trader with Seaport Securities.
Investors kicked off June on a negative note after several economic data points weighed on sentiment. Concerns about unemployment arose after a reading on private-sector job growth came in well below economists' expectations, fueling anxiety on Wall Street about the government's monthly jobs report Friday. Pessimism continued to mount after the Institute for Supply Management said the manufacturing sector slowed sharply in May. U.S. auto sales also dropped in May from a month earlier, the auto industry's first significant setback in more than 18 months. The selling accelerated in the late afternoon after Moody's Investors Service again cut the rating of Greek government debt.
The last time the blue-chip index dropped more than 200 points on a closing basis was March 16, which was at the height of the nuclear crisis in Japan. Wednesday's declines erased the 1.7% gain the Dow achieved during the previous four sessions of gains, including the 128-point rise on Tuesday.
"There's a very large population of portfolio managers who are nervous," said Fred Fraenkel, chairman of investment policy at Beacon Trust Company. "They're invested, but they're nervous and scared, the same way they were scared this time last year, about a 'double dip' "—the economy stalling again.
Financials were the S&P 500's biggest-declining sector Wednesday, dropping 3.5%. The weak private-sector jobs report points to a major obstacle to recovery for banks, given that unemployment is tied to delinquencies on mortgages and credit cards, as well as weak consumer lending.
The ADP data prompted many financial institutions, including Goldman Sachs, to slash estimates for job growth ahead of the nonfarm payrolls report due Friday.
"There's a lot of skepticism," said Steve Quirk, senior vice president of the active-trader group at TD Ameritrade. "But unless we see something really out of the norm, I wouldn't anticipate seeing a market reaction Friday like we're seeing [Wednesday]."
Demand for U.S. Treasurys soared following the weak economic data, pushing the yield on the 10-year note below the psychologically key level of 3%.
Crude-oil futures tumbled but remained above $100 a barrel, while gold futures edged up. The dollar rose against the euro but ticked lower against the yen.
Wednesday's data add to a string of reports in recent weeks that indicate the U.S. economy struggled in May. Regional factory reports were weak, initial claims for unemployment benefits remained high, and the Conference Board's consumer-confidence index fell sharply last month.
In corporate news, Dollar General's fiscal first-quarter profit fell short of analysts' expectations, prompting shares to drop 3.26, or 9.3%, to 31.81.
Lions Gate Entertainment swung to a fiscal fourth-quarter profit as the movie and television studio spent much less on distribution and marketing. Shares rose 26 cents, or 4.4%, to 6.19.
Sealed Air said it would buy cleaning-products maker Diversey Holdings for $2.9 billion in cash and stock, as the packaging-goods company looks to diversify by selling an expanded line of products to its current customers. Sealed Air shares fell 1.71, or 6.7%, to 23.84.
Jos. A. Bank Clothiers slumped 7.59, or 13%, to 49.51, as the seller of high-end men's business and casual clothes reported fiscal first-quarter profit and revenue that fell short of Wall Street's expectations.
Marathon Oil agreed to pay $3.5 billion for acreage in the popular Eagle Ford shale formation in south Texas from a joint venture of Hilcorp Energy and private-equity firm KKR. Shares of Marathon Oil fell 1.52, or 2.8%, to 52.65.
Stocks See Worst Day in 8 Weeks Amid Debt Deal Woes...
Reuters 2:45 pm EDT
NEW YORK (Reuters) - Wall Street suffered its worst day in eight weeks on Wednesday, hit by weak earnings, lackluster economic data and no movement in Washington as the deadline for a default looms.
The Dow Jones industrial average (DJI:^DJI) dropped 197.76 points, or 1.58 percent, to 12,303.54. The Standard & Poor's 500 Index (^SPX) lost 26.95 points, or 2.02 percent, to 1,304.99. The Nasdaq Composite Index (Nasdaq:^IXIC) fell 75.17 points, or 2.65 percent, to 2,764.79.