Tag - EXEL

ViroPharma Inc. (Nasdaq:VPHM), P.F. Chang's China Bistro Inc. (Nasdaq:PFCB) and Sequenom Inc. (Nasdaq:SQNM) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Exelixis Inc. (Nasdaq:EXEL), Jazz Pharmaceuticals Inc. (Nasdaq:JAZZ), CardioNet Inc. (Nasdaq:BEAT), JAKKS Pacific Inc. (Nasdaq:JAKK), Energy Conversion Devices Inc. (Nasdaq:ENER) and THQ Inc. (Nasdaq:THQI).

Align Technology Inc. (Nasdaq:ALGN), SonicWALL Inc. (Nasdaq:SNWL) and Healthways Inc. (Nasdaq:HWAY) are among the biggest percentage gainers in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: China Sunergy Co Ltd. (Nasdaq:CSUN), CNinsure Inc. (Nasdaq:CISG), Exelixis Inc. (Nasdaq:EXEL), Energy Conversion Devices Inc. (Nasdaq:ENER), optionsXpress Holdings Inc. (Nasdaq:OXPS) and Interactive Brokers Group Inc. (Nasdaq:IBKR).

TiVo Inc. (Nasdaq:TIVO), First Financial Bancorp (Nasdaq:FFBC) and Isle of Capri Casinos Inc. (Nasdaq:ISLE) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: PDL BioPharma Inc. (Nasdaq:PDLI), AgFeed Industries Inc. (Nasdaq:FEED), Century Aluminum Co. (Nasdaq:CENX), Iconix Brand Group Inc. (Nasdaq:ICON), True Religion Apparel Inc. (Nasdaq:TRLG) and Exelixis Inc. (Nasdaq:EXEL).

First Financial Service Corp. (Nasdaq:FFKY), First California Financial Group Inc. (Nasdaq:FCAL) and BCB Bancorp Inc. (Nasdaq:BCBP) are among the biggest percentage losers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Carrols Restaurant Group (Nasdaq:TAST), Hurco Cos Inc. (Nasdaq:HURC), Nelnet Inc. (Nasdaq:NNI), United Western Bancorp Inc. (Nasdaq:UWBK), Exelixis Inc. (Nasdaq:EXEL) and Exelixis Inc. (Nasdaq:EXEL).

If you had a chance to catch the article on page C5 in yesterday's The Wall Street Journal you probably found affirmation of what you already know about small cap stocks. It seems that Russell Investments (as in the folks from the Russell 2000 index, among others) have recently re-examined the stock market's performance coming out of recessions and they indicate there's strong evidence to suggest that small cap value stocks outperform all other coming up from the bottom.

Recent experience since the market bottom on March 9, 2009 further corroborates this thesis. We've already seen that the majority of gainers on any particular day have been small caps. Just look at some of the big gainers from just this past week: MAP Pharmaceuticals (Nasdaq:MAPP), SYMS Corp. (Nasdaq:SYMS), AgFeed Industries (Nasdaq:FEED), Central Jersey Bancorp (Nasdaq:CJBK), FreeSeas, Inc. (Nasdaq:FREE), Exelixis (Nasdaq:EXEL) and Dynacq Healthcare (Nasdaq:DYII), just to name a few.

And recently an analyst from Morningstar, Bradley Kay, looked back even further to 1931 and noticed that there was a big performance difference between large cap and small cap stocks during recessions and recoveries. He further stated, "small cap stocks very much lead out of a recession."

This was my strategy in 2001 through 2003 when I started my first small cap service, Growth Report, and continues to be my focus with my SmallCapInvestor PRO service (you can get more information HERE) as we've already put in 12 out of 13 winners for the year.

The time is now to load up on small cap stocks.

In today's trading news, as of 12:00 p.m. Eastern today, the DJIA and Nasdaq are posting minor losses while the S&P 500 is just barely above even from the opening bell.

Russell 2000 Index stocks are up 0.02% at 492.32, a 43.4% increase since the March 9, 2009 lows.

Small caps leading the market today include Green Plains Renewable Energy (Nasdaq:GPRE) up 30.6% in today's trading, Penson Worldwide (Nasdaq:PNSN) up 16.5%, and J Crew Group (NYSE:JCG) up 23.9% on beating analysts' Q1 EPS expectations: JCG reported earnings per share of $0.32 while analysts called for $0.10. Analysts are now revising their full-year 2010 EPS estimate to $1.15 versus an earlier estimate of $0.54.

*****The high close for the Nasdaq since the rally began was 1,763. Yesterday's close was 1,751. For the S&P 500, the high close was 929 and it closed at 906 yesterday.

I mention these levels because they are what traders are watching. Some believe that, since the indices haven't taken out prior highs, the recovery rally is overdone and that a sharp sell-off is coming. Others say the recession is ending, the economy is improving, and there's more upside coming. To them, any weakness in stock prices is consolidation for the next move higher.

It should be remembered that the Nasdaq is still around 800 points, or 32% of its 2008 highs. The S&P 500 is 660 points, or 42% off its 2008 highs. So it's not like the indices are anywhere near prior levels. Who's to say what should be a decent target for a recovering stock market?

*****We can always check price-to-earnings ratios. (I'll use numbers from the Wall St. Journal's Market Data Center. This is one of my secret weapons, but, since I'm here to help, I'll share the link so you can bookmark it --  http://online.wsj.com/mdc/public/page/marketsdata.html#calandeco )

For the S&P 500, the trailing P/E is 15, and the forward number, based on estimates, is 15.75. For the Nasdaq, the trailing P/E is 13 and the forward number is 18.

Neither index seems extended on a price-to-earnings basis.

Oil hit a new high at $65, and inventories in the U.S. have dropped 3 weeks running. Traders believe increased demand as a result of increased economic activity is coming sooner rather than later. And bond prices have been falling, which is what you expect to see when stocks offer a more attractive risk/reward scenario.

Of course, one could also say prices fall when traders know there is a virtually unlimited supply of Treasuries hitting the market as the government needs to raise a lot of cash.

But explaining away numbers can be a bad idea. Because when we do that, we're letting our own bias creep in. That's exactly what happened last year when the drumbeat of a coming crisis started. So many pundits explained the numbers away with rosy talk.

*****The unemployment rate is nearly at 9%. Most believe double digits are inevitable. And what's worse, some are saying that high unemployment of 6%-7% may persist for years. But that doesn't necessarily mean that corporate profits will get worse from where they are now. Perhaps the current P/E ratios for the Nasdaq and the S&P 500 are appropriate. Maybe there's even some upside.

In my opinion, what's worrisome is that the next shoe to drop is still the first shoe - banks. There's no doubt that the rally for financials has come on the government's dime (that would be your tax dollars and debt to be paid by your children and grandchildren, of course). Refinances, mortgage and consumer debt modifications, investment gains from TARP money - these are all one-off windfalls. They blew in, and they will very likely blow right back out. What then?

Bank of America (NYSE:BAC) currently has a forward P/E of 10. Compound annual growth for the next 5 years is 7.6%. BAC also has $225 billion more debt than cash. Quite frankly, I don't see any upside to BAC. And that makes me worry about the downside.

*****As you know, I've pointed out moments where it looked as though stocks were about to head lower with comments like "cracks are showing" or "the news cycle is turning negative." So far, no significant downside has occurred. Of course, that doesn't mean it won't.

Consumer confidence has been steadily rising, and stock prices show it. We're also moving into the summer months, which are traditionally the worst months for stocks. 

For now, the best advice is an observation - a trend is in place until it turns. There's no reason to simply sell or take downside positions now. But keep your eye in things, apply stop losses to your positions and we'll see what happens.

If you want to get a clearer idea of what's going to be happening in the markets, be sure to check out TradeMaster's Jason Cimpl sharing his thoughts on the SPX, which tracks the S&P 500. He's calling for the near term for a bullish trend. You can view the video HERE (no registration or sign up required).

Take Two Interactive Software Inc. (Nasdaq:TTWO), Exelixis Inc. (Nasdaq:EXEL) and Penson Worldwide Inc. (Nasdaq:PNSN) are among the most actively traded companies in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: PSS World Medical Inc. (Nasdaq:PSSI), SIGA Technologies Inc. (Nasdaq:SIGA), Eagle Bulk Shipping Inc. (Nasdaq:EGLE), OmniVision Technologies Inc. (Nasdaq:OVTI), Solarfun Power Holdings Co Ltd. (Nasdaq:SOLF) and Century Aluminum Co. (Nasdaq:CENX).

Leading today's rally in small cap stocks is FreeSeas, Inc. (Nasdaq:FREE), a Greek based operator in international dry bulk shipping, on news that Q1 earnings of $0.29 per share beat analysts estimates by $0.04 or $0.24 per share. The company attributes much of this to the upward pricing in the Dry Bulk Index. Further statements from the company indicate management's expectation to achieve profitability throughout 2009. Shares are up 26% through morning and early afternoon trading to $2.76.

Other small caps in the shipping sector posting gains today include Hornbeck Offshore Services (NYSE:HOS) up 5.6%, Diana Shipping (NYSE:DSX) up 5.75%, and Genco Shipping (NYSE:GNK) up 6.7% for the day.

(Note: for more information about profitable shipping plays check out my new report, "3 Value Play Shipping Stocks to Navigate to Calmer Waters". You can find it HERE.)

Other small caps over 20% today (as of 1:30 P.M. Eastern) are from the healthcare sector with Exelixis (Nasdaq:EXEL) posting a 21.9% gain on news of it development partnership with heavyweight drugmaker Sanofi-Aventis to work on a cancer drug. The deal is expected to be worth $140 million upfront and eventually up to $1 billion. The other health sector leader, and in third place today, is Dynacq Healthcare (Nasdaq:DYII) currently trading at $3.37 on today's gains of 21%.

As of 1:30 P.M. Eastern the DJIA is up 0.90% to 8,374.73, the Nasdaq trails it just slightly bringing in a gain of 0.82% at 1,745.20, and the S&P 500 leads both with a 1.25% gain for trading to bring it to 904.20.

*****Yesterday, it was reported that median home prices fell to $209,700 from $246,400 in April 2008. That's a steep year-over-year correction, even though prices were up from March 2009.

Today, we hear that that new home sales posted a gain, though not as big as expected.

The housing market is bottoming. How long will the bottoming process take? Common sense would say it will take a while, probably a couple years, to work off the inventory and get current delinquent loans back on track.

Persistently high unemployment rates will not help speed the recovery in housing. But at least we're seeing signs that the housing market is stabilizing. We should expect to see swings in the data, one good month could easily be followed by a bad month. It will be interesting to see how much the stock market moves on housing data going forward. I would suspect that only extreme readings would move stocks significantly.

*****The Mortgage Bankers Association reported that 9% of mortgages are delinquent. Throw in mortgage holders that are in foreclosure and it's 12%. That's a huge percentage. It's also the highest since data was tracked, starting in 1972.

It's easy to see why the numbers are so ugly - as the unemployment rate rises, fewer can afford their mortgages. And in some areas of the country the unemployed can't move to find a job because they can't sell their home. So it's no wonder that more and more economists expect a "double-dip" of recession.

74 percent of economists responding to a National Association for Business Economics survey believe the U.S. economy will grow in the 3rd Quarter. But the growth won't be strong or lasting.

A growing number of economists, including Dr. "Doom" Nouriel Roubini, believe it's likely that the U.S. economy will go back into recession in the second half of 2010, when government stimulus wears off.

*****The economic recovery is facing two major speed bumps - rising energy prices and rising interest rates. As the economy recovers, energy prices will rise, soaking up excess household funds and leaving less for discretionary spending. We've seen oil prices practically double so far this year and OPEC has announced that it feels that RIGHT NOW oil should be valued at $80 a barrel: meaning another 27% from today's $63. That's going to hurt at the pump even more. Here at the Washington, D.C. offices we're already up 40% since December with a regional average of about $2.39.

As the government continuer to sell Treasury bonds to fund the budget shortfall (over $1 trillion for 2009, and counting) and pay for stimulus initiatives, bond yields will rise, making it more expensive for consumers to get a loan. That will affect the market for big-ticket items like cars and new appliances, not to mention homes.

*****All this will have important consequences for your investments for the foreseeable future. First and foremost, it will be important to follow sector trends. Energy will remain strong, but sectors like retail, housing and consumer goods will probably remain volatile. There will be some quick, isolated opportunities here and there in those sectors, but the broader trend is not positive.

Also, risk management will be critical to success. Investors should have exit strategies in place for their investments. This is not a time to be thinking "buy and hold." Rather, if you have gains, don't be afraid to take the money and run.

*****Speaking of taking your money…just this morning I advised my Top Stock Insights advisory service members to take their 19% gains on BlackRock, Inc. (NYSE:BLK) today. BlackRock was my feature recommendation for profiting from the Treasury's Public-Private Investment Program (PPIP) to remove toxic assets from banks' balance sheet.

Several important aspects of the plan have been removed, and I suspect Treasury Secretary Geithner will abandon it altogether soon. The PPIP is simply not going to work, and for many of the reasons I've stated here in Daily Profit.

First and foremost, banks simply don't want to sell. And Geithner blew his opportunity to gain some leverage over the banks through his "stress tests." And all the bailout money didn't exactly convince banks they were in danger of failure and needed to sell.

At least Top Stock Insights readers managed to turn a profit on Geithner's failed plan. Now, we're setting our sights on India. The recent election there has set the stage for massive economic reform and jumpstart to growth.

Despite a huge jump for Indian stocks in the wake of the election results, not many investors are considering India right now. But I think that gives us a distinct advantage as India could be one of the great growth stories this year and going into the next several years. If you're interested, you can find out how to get my Special Report 3 India Stocks Set to Soar in 2009 by clicking HERE.

 

Exelixis Inc. (Nasdaq:EXEL), Perry Ellis International Inc. (Nasdaq:PERY) and Brown Shoe Company Inc. (Nasdaq:BWS) are among the biggest percentage gainers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Diamond Foods Inc. (Nasdaq:DMND), Geokinetics Inc. (Nasdaq:GOK), Monotype Imaging Holdings Inc. (Nasdaq:TYPE), Calavo Growers Inc. (Nasdaq:CVGW), John B  San Filippo & Son (Nasdaq:JBSS) and W&T Offshore Inc. (Nasdaq:WTI).

Today’s action started out under tremendous stress, with stock futures reeling overnight after Senate leaders rejected the $14 billion auto bailout bill, but the White House made it clear that they would throw a lifeline to drowning automakers, regardless. The news helped push stocks higher and the Russell 2000 (NYSE:IWM) eventually managed to end the day up 3.82%. Some of today’s small-cap gainers are Prologis (NYSE:PLD), Exelixis (Nasdaq:EXEL) and Macerich (NYSE:MAC).

Other Market Watch highlights today included:

• Retail sales this morning came out at minus 1.8%, which was in line with the forecast and perhaps not as bad as some of the “whisper” numbers ahead of the release.
• The PPI report came in at -2.2%, better than the forecast for a dip of 1.8%, which basically shows inflation isn’t an issue right now.
• Bernard Madoff, former Nasdaq chairman, was arrested and charged with running a fraudulent hedge fund that may have racked up $50B in losses. 
• On the auto front, the White House appears ready to throw a lifeline to cash-strapped firms via the TARP funds.
• Tech shares were a clear source of strength today, with large-cap tech firms setting the tone for a strong day in the arena.
• Crude oil was back in the tank, losing 3.5%, or $1.70 a barrel.
• Commodities were the poorest performers today, with coal, metals, agriculture products and oil exploration among the worst

Small Cap Gainers:

• Prologis (NYSE:PLD) jumped 43% as the distribution facilities manager basically recouped a similar loss from Thursday’s session. PLD has seen its stock crumble from the $60 range six months ago to just above $2 at the recent low . . .

Small-cap stocks pushed higher Friday in a miraculous recovery from a dreadful start. Investors embraced talk that the White House would find a way to funnel money into empty automaker coffers after Senate Republicans squashed a proposed aid package Thursday night. Tech stocks, real estate investment trusts, homebuilder and construction materials shares helped lift the Russell 2000 (NYSE:IWM) to a higher close, with the index closing up 17.22, or 3.82%, at 468.43. For the year, the Russell is now down 39%, while the Dow is off 35% and the S&P 500 is down 40%.

Today’s action started out under tremendous stress, with stock futures reeling overnight after Senate leaders rejected a $14 billion bailout bill for automakers. In addition, the commodities run that powered recent upside action looked tired, financial shares were still soft and news of a massive $50 billion investor fraud was in the mix. The market was poised for a 4% drop on the open, and who knows just how ugly things might have gotten … but that’s when the White House made it clear that they would throw a lifeline to drowning automakers. If the Senate wouldn’t approve a bridge loan to automakers without micromanaging their businesses and carving more concessions out of the union, then the Bush Administration would try to keep car makers afloat for a few weeks while the politics got sorted out. Turns out, it was a lifeline that rescued the stock market from what looked like a very troubling day. That said, General Motors Corp. (NYSE:GM) stock still slipped 4.3% today, while Ford Motor Co. (NYSE:F) was up 4.8%.

Technology shares were a clear source of strength today for the market, with big-time firms like Apple Inc. (Nasdaq:AAPL), up 3.4% and Intel Corp. (Nasdaq:INTC), up 5.2% setting the tone for a strong day in the tech arena.

The big event today was supposed to be the monthly retail sales report, which would most likely remind all of us just how bad spending is as we finish up the holiday season. As it turned out, the retail sales report was just as bad as predicted — which actually means it was good news. If you’re keeping tabs, the headline retail sales figure came in at minus 1.8%, right in line with the forecast. But the . . .

Small-cap stocks were holding ground into mid-session, buoyed by hope for a White House rescue for automakers and by a bounce in tech stocks, real estate investment trusts, homebuilders and gold stocks, which helped counter ongoing weakness in the financial arena. Some of today’s small-cap gainers are Prologis (NYSE:PLD), Exelixis (Nasdaq:EXEL) and TechTeam Global (Nasdaq:TEAM).

Other Market Watch highlights today included:

• The Michigan sentiment survey came in better than expected at 59.1, above the forecast of 55.0.  
• Much of the investor focus today will be on trying to decipher just what the Senate’s rejection of the automaker bailout will mean to the market.  
• The Nasdaq traded in positive territory briefly about 30 min. after the open, and small caps jumped nearly 10 handles off the morning low.  
• Bernard Madoff, former Nasdaq chairman, was arrested and charged with running a fraudulent hedge fund that may have racked up $50B in losses.

Small Cap Gainers:

• Real estate investment trusts (REITS) were on a serious roll today, with small-capper Prologis jumping 26%, reversing a big slide from Thursday. See (NYSE:PLD).
• Bristol-Myers, biotech Exelixis team up on cancer; Exelixis stock is up 18.5%. See (Nasdaq:EXEL).  
• TechTeam Global up 16% on light volume. See (Nasdaq:TEAM). 
• The Andersons raised to "buy" from "hold" by BB&T; shares pop 15%. See (Nasdaq:ANDE).  


Small Cap Losers:

• Chicago Bridge & Iron Co. NV tumbled 17% and has now given back the recent advance tied to plans from President-elect Obama to initiate a massive infrastructure project.  
• DryShips cancels its acquisition of four Panamax drybulk carriers. Shares fall 15% in pre-market. See (Nasdaq:DRYS).  
• Wunderlich Securities initiates coverage on Warren Resources with a "hold," shares dip 4%. See (Nasdaq:WRES).  
• Ciena down another 3.31% in pre-market after seeing a dramatic loss Thursday on a Q4 Loss. See (Nasdaq:CIEN). 

Small-cap stocks flashed some surprising upside muscle on the opening, but the initial support from bargain hunting was quickly countered by selling stirred by worries over the sluggish economy, a troubling jobs outlook and sloppy earnings numbers. Today’s small-cap gainers are VASCO Data Security International (Nasdaq:VDSI), F5 Networks (Nasdaq:FFIV) and inSim Technology (Nasdaq:WVCM).

Other Market Watch highlights today include:

• Crude oil prices turned up about $1 a barrel awaiting news from the OPEC meeting, where oil ministers are expected to slash production to offset sinking prices and soft demand.  
• The U.S. dollar was on firm footing this morning, which should continue to exert pressure on many commodities markets.  
• RealtyTrac estimated that 1 in every 475 homes received a foreclosure filing in September.  
• RealtyTrac released a report early this morning saying that foreclosures were up 21% from September 2007 and up a whopping 71% from the third-quarter of last year.
• Most analysts are predicting a sharp rise in unemployment levels in coming months. Greenspan said earlier today that there will be a significant rise in layoffs and unemployment still to come.

Small Cap Gainers:

• VASCO Data Security International surges 30% after reporting third-quarter results that topped Wall Street by a large margin. (Nasdaq:VDSI).  
• F5 Networks up 12% after fiscal fourth-quarter earnings beat the Street. See (Nasdaq:FFIV).  
• inSIM Technology said it will ensure reliable cellular connections for machine-to-machine devices in Brazil. See (Nasdaq:WVCM).  
• GSI Commerce gains after posting a third-quarter net loss that was narrower than expected. See (Nasdaq:GSIC).  

Small Cap Losers:

• Braskem SA tumbled 23% on light volume, as the Brazilian petrochemical company joined other Latin American ADRs in the recent tailspin. See (NYSE:BAK).  
• Phoenix Technologies Ltd. gapped lower and was down some 27% as the systems software firm released unimpressive quarterly results. See (Nasdaq:PTEC).  
• Exelixis said GlaxoSmithKline will not exercise its option to license XL184, which inhibits tumor growth drivers. See (Nasdaq:EXEL).
• Ticketing company Ticketmaster said it would acquire a controlling equity interest in Front Line Management Group. See (Nasdaq:TKTM).  

The Russell 2000 (NYSE: IWM) posted a big loss as news of liquidity problems at Bear Stearns spread credit fears. The small-cap index fell 16.81 points, or 2.47%, to 662.90. The Dow Jones Industrial Average (INDU) declined 194.65 points, or 1.60%, to 11,951.09.

On a year-to-date basis, the Russell 2000 has lost13.46%, while the Dow is down 9.90% and the S&P 500 has retreated 12.27%.

Stocks small and large tumbled today on news that Bear Stearns’ (NYSE: BSC) cash position has deteriorated significantly over the past 24 hours. The investment bank, which has been highly exposed to the subprime mortgage sector, turned to J.P. Morgan Chase & Co. (NYSE: JPM) and the New York Federal Reserve for short-term financing to alleviate its liquidity problems.

There’s speculation that Bear Stearns will soon be purchased by one of its larger rivals. News of the company’s problems spread fears of a severe credit squeeze, leading to a sharp sell-off.

The Russell 2000 (NYSE: IWM) began in the green but soon fell deep into the red on news of problems at Bear Stearns.

At 10:05 a.m. ET, the small-cap index was down 13.77 points, or 2.03%, to 665.94. The Dow Jones Industrial Average (INDU) had shed 208.17 points, or 1.71%, to 11,937.57.

Stocks opened in positive territory on news before the opening that consumer prices surprisingly stayed put in February, according to the U.S. Labor Department. The core index, which excludes the costs of food and energy, was also unchanged. Economists were expecting both measures to rise 0.2%.

The numbers make it easier for the U.S. Federal Reserve to lower interest rates when it next meets on March 18; however, consumer prices have increased 4% on a year-over-year basis, above the Fed’s preferred range of between 1% and 2%.

The bullish sentiment evaporated quickly, though, on news that J.P. Morgan Chase & Co. (NYSE: JPM) and the New York Federal Reserve will loan money to Bear Stearns (NYSE: BSC) to help it deal with its liquidity problems.

Bucking the negative trend is Exelixis Inc. (Nasdaq: EXEL). The biotechnology company reported before the start of trading that Genentech Inc. (NYSE: DNA) has exercised the option to further develop and market Exelixis’ experimental cancer drug XL518.

The Russell 2000 (NYSE: IWM) futures have moved up and the small-cap index will open in positive territory.

Wall Street appears set for a bullish opening following a day of steep losses. There is little on the economic docket today, except for news about the U.S. trade deficit in January.

The U.S. Commerce Department reported this morning that the trade deficit increased 0.6% to $58.20 billion in January from December’s downwardly revised $57.86 billion. Economists were expecting the deficit to widen to $59 billion.

Exports increased 1.6%, while imports added 1.3%.

Small-cap stocks extended the freefall Monday, sinking to the lowest daily close since Oct. 27, 2005. By the time the bell put a merciful end to things, the Russell 2000 fell 16.14 points, or 2.45%, to 643.97. Interestingly, the late action in small caps was far more severe on the downside than what took place in large-cap issues. In addition, the index snapped critical chart support from January at 650. Persistent price action below that point would open the door for another leg down in the bear market.

The international trade data this morning could spark some pre-opening volatility in stocks, but that report tends to be more of a market mover in the foreign exchange domain. Look for resistance Tuesday for the Russell at 650, then at 654.50 and 660.

Meanwhile, support is at tentatively at 639 and 634, but since we are now at long-term lows, the next big chart points aren’t until 625 and 614.