Alphabet Inc. (NASDAQ:GOOG) Traders See Price Errors at Close
Apple Inc., Google-parent Alphabet Inc. and other major stocks had a bizarre last few minutes of trading Tuesday, as data glitches hampered U.S. markets for a second day.
The drama came at the close, following a day in which Apple had calmly traded above $208 for hours, poised for a more than 4% gain. When 4 p.m. arrived, the shares sank in an instant to $200.48, exactly where it had finished the day Monday. Minutes later the closing price was corrected to $208.97.
Many others followed a similar script. According to Nasdaq Inc., one of the major U.S. exchange operators, 80 stocks were affected, 13 of them Nasdaq-listed companies. They include Alphabet, International Business Machines Corp. and Bank of America Corp.
The problem, according to Ed Coughlin, Nasdaq’s director of trading services, was that a broker-dealer incorrectly reported trades to an industry price feed — something called the Finra TRF — at stale numbers: Monday’s close. Nasdaq notified the trading firm that it made a mistake, and the broker subsequently canceled the transactions with the bad prices and resubmitted them at the correct levels, Coughlin said. He declined to identify the broker.
“The incorrect trade reports happened after the market had closed and had no impact on continuous market trading,” he said in an interview.
The issue occurred a day after errors in a feed run by the New York Stock Exchange delayed the calculation of closing levels for the S&P 500 and Dow Jones Industrial Average. It was also just a few hours after a separate problem at S&P Dow Jones Indices prevented the S&P 500 and Dow from updating for roughly 15 minutes earlier in the day.
“Our index management team has already resolved the issue and is currently assessing any necessary remediation to avoid further interruptions,” said April Kabahar, head of communications at S&P Dow Jones Indices.
Though rare, problems with price feeds have occasionally dogged U.S. equity infrastructure in its electronic age. In August 2013, a computer error froze thousands of securities listed on the Nasdaq Stock Market for three hours in an interruption later attributed to a malfunctioning price feeds. The New York Stock Exchange halted trading for 3 1/2 hours because of a computer malfunction in July 2015.
“I don’t think it’s unprecedented,” Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, said of Tuesday’s problem. “Once they corrected it, all these irregularities went away.”
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 1,152.74.
The projected upper bound is: 1,264.18.
The projected lower bound is: 1,136.80.
The projected closing price is: 1,200.49.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.
An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.
If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with ALPHABET INC C), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 68.6635. This is not an overbought or oversold reading. The last signal was a buy 4 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 56.24. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 10 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -9. This is not a topping or bottoming area. The last signal was a sell 9 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 5 period(s) ago.
Rex Takasugi – TD Profile
ALPHABET INC C closed up 22.560 at 1,197.270. Volume was 14% below average (neutral) and Bollinger Bands were 19% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,188.07 1,131.92 1,121.71
Volatility: 33 35 36
Volume: 1,567,504 1,517,405 1,634,210
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
ALPHABET INC C is currently 6.7% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of GOOG.O (mildly bearish). Our trend forecasting oscillators are currently bullish on GOOG.O and have had this outlook for the last 37 periods.
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