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Stock Market Responds Strongly to FOMC Announcement

The stock market indices had a very volatile day.

 

By Harry Boxer

Initially they had a little pop to the upside, and then a sideways coil. The S&P 500 (NYSEARCA:SPY) headed a little lower, but then rallied just before the FOMC announcement. When the announcement came, there was just a little pop to the highs, but they couldn’t get through, and plunged. The Nasdaq 100 dropped from 5770 to 5682 and the S&P 500 from 2443 to 2428. Late in the day, in the last 40 minutes, they had a nice rally back up again, taking the Nasdaq 100 from 5683 to 5730, a 47-point rally. The S&P 500 bounced from 2428 to 2438, closing not far from the rally high in the afternoon.

Net on the day, the Dow (NYSEARCA:DIA) was up 46.09 at 21,374.56, closing at a new all-time high. The S&P 500 was down 2.43 at 2437.92, almost 10 points off the low. The Nasdaq 100 was down 24.75 at 5727.07, about 45 points off the low.

Advance-declines were 170 issues lower on the New York Stock Exchange, and about 500 issues lower on the Nasdaq(NYSEARCA:QQQ). Up/down volume was almost 2 to 1 negative on New York, total volume of 3 1/2 billion shares traded. The Nasdaq traded 1.9 billion shares and had an 11 to 8 negative volume ratio.

TheTechTrader.com board ended the day pretty narrowly mixed. There were some big losers and some nice gainers. Priceline.com (PCLN) was down 11.91 to 1831.61, 16 points off the low, Alphabet Inc. (GOOG) down 2.64 to 950.76, 8 points off its low, Apple Inc. (AAPL) down 1.43 to 145.16, about 1.30 off its low, Amazon.com, Inc. (AMZN) 4.32 to 976.47, 10 points off its low, and Netflix, Inc. (NFLX) 52 cents to 152.20.

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It was a nice recovery, but still a mixed picture at the end of the session.

Baidu, Inc. (BIDU) lost 99 cents to 178.20, Facebook, Inc. (FB) gave back 43 cents to 150.25, First Solar, Inc. (FSLR) dropped 27 cents to 36.19.

Tesla Motors, Inc. (TSLA) managed to stay on top of the game, gaining 4.71 to 380.66, making a new all-time high at 384.00 earlier in the day.

Other stocks to the upside included Omeros Corporation (OMER), one of our swing trades, tagged 2234.00, reaching both of our swing-trade targets in just 24 hours, jumping 2.39 to 21.97. Fantastic!

On the downside, losers were plentiful. Qorvo, Inc. (QRVO), in a weak semiconductor sector, which dropped 2.52 to 72.13 was among the many.

Checking TheTechTrader.com percent-gain leaderboard, China Commercial Credit, Inc. (CCCR) advanced 38 cents, or 14%, to 3.12, on 5.15 million shares traded.

NeuroDerm Ltd. (NDRM) actually led the way up, bouncing 3.85, or 15 1/2%, to 28.75, on nearly a million shares traded. Epizyme, Inc. (EPZM) had a good day. It got down to 8.83, and then exploded to over 13.00, and closed up 1.20, or 11%, to 12.35, on 6.4 million shares traded. That was a huge reversal on positive drug news. Carvana Co. (CVNA) snapped back 1.62, or 11%, to 16.73, on 1.6 million shares traded.

As gold got whacked, the Direxion Daily Jr Gld Mnrs Bear 3X ETF (JDST) ran 7.76, or 13%, to 68.00, on 7.4 million shares traded, trading over 70 at one point.

As oil dropped, the VelocityShares 3x Inverse Crude (DWT) popped 3.76, or 11.3%, to 37.04, on 2.9 million shares traded.

Stepping back and reviewing the hourly chart patterns, the indices went from up early, down sharply, only to rally back, and close mixed on the session.

Not a bad finish to the day, but we’ll see if there’s a follow-through tomorrow after the FOMC rate increase today.

Good Trading!