Bloodbath on Wall Street

Bloodbath on Wall Street By Harry Boxer, www.TheTechTrader.com an AdviceTrade.com publication

It was a bloodbath on Wall Street today as the stock market indices opened with a big gap down, moved sharply lower all morning, then finally had a midday snapback rally, which failed at resistance, rolled over, tested support, and bounced. But that late bounce is what killed the market for the most part, because when it couldn’t get back to resistance near 2250 Nasdaq 100 and 1222 S&P 500, they rolled them over, and rolled them over hard.

Net on the day the Dow was not too far off the low, down 512.76 at 11383.68. The S&P 500 dropped at the late afternoon trade from 1223 to 1200, closing right at the 1200 mark at 1200.07, down 60.27. At that point, the NDX dropped from 2250 to 2207, closing at the low for the day going away, down 105.58 to 2207.20.

Advance-declines were about 19 to 1 negative on the New York Stock Exchange today with 150 up and 12,2968 down. Up/down volume was the most incredible number of all with only 19.7 million traded on the upside, and nearly 1.8 billion to the downside. A ratio I’ve never seen.

The advance-declines on Nasdaq were almost as bad with 2452 down and only 208 up. That was about 11 to 1 negative. Up/down volume was 38 million up and 3.75 billion to the downside, about a 100 to 1 ratio. I’ve never seen that either.

It has been one of the worst days ever in the history of Wall Street, in my opinion.

TheTechTrader.com board had a bloodbath across the board today as most stocks we have were down multiple points. There were only a couple fractional gainers, with the best performance by the ultra-shorts.

We traded the Direxion Daily Large Cap Bear 3X Shares (BGZ), up 5.79 to 44.86. The Direxion Daily Financial Bear 3X Shares (FAZ) jumped 7.54 to 59.29, and the Direxion Daily Small Cap Bear 3X Shares (TZA) 7.38 to 48.40.

Even the ultra-short oil, ProShares UltraShort DJ-UBS Crude Oil (SCO), was up 6.22 to 57.94, with the ProShares UltraShort Silver (ZSL) up 1.78 to 14.08 and the iPath S&P 500 VIX Short-Term Futures ETN (VXX) up 4.81 to 28.89.

On the downside, leading the way, Apple Inc. (AAPL) was down 15.20 to 377.37, International Business Machines Corp. (IBM) 7.35 to 171.48, SodaStream International Ltd. (SODA) 7.40 to 68.16, Travelzoo Inc. (TZOO) 5.33 to 51.55, InterDigital, Inc. (IDCC) 4.70 to 67.26, and Goldman Sachs (GS) 5.85 to 126.23.

There were almost too many other point-plus losers to mention, but I’ll go through a couple. Molycorp, Inc. (MCP) dropped 4.23 to 55.77, Youku.com Inc (YOKU) lost 4.32 to 28.94, and VirnetX Holding Corp (VHC) fell 4.40 to 22.97.

It was quite ugly on Wall Street today, to say the least. At one point the negative tick on New York was minus 1567 -- pretty close to climactic. With the advance/decline lines the way they are, we’re going to see the McClellan Oscillator at its most oversold in years, which very likely, after a potentially weak open tomorrow, could set up a nice snapback rally.

We’ll see how it goes tomorrow.

Good Trading!

Harry

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