The shares opened on the lowest Tuesday, ready for a break after recovering to another round of new records on Monday. Bitcoin also broke a new record, with a boost from Tesla. HaynesBrands and leading e-learning leader Chegg achieved initial results after earnings reports. And in today’s Dow Jones, Microsoft and Disney shares were traded in buy ranges.
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The Dow Indutrials fell 110 points, a loss of 0.3%. The S&P 500 reduced losses to less than 0.1%. Nasdaq Composite overcame opening losses and rose 0.2% above its equilibrium line in the stock market today. The Dow Industrials and S&P 500 are each on six-day rallies, the longest recovery periods since August. The Dow, S&P 500, Nasdaq Composite and Russell 2000 broke records on Monday.
In Washington, the House of Representatives was set to begin work on the $ 1.9 trillion stimulus package after the House and Senate passed a bill late last week allowing the process to move forward. The most optimistic forecasts project completion before the end of the month. The impeachment processes that are underway on Tuesday in the Senate are unlikely to affect the markets.
Based in China NetEase (NTES) and Baidu (BIDU) were the first leaders at Nasdaq, with an increase of about 5% each. Video game developer Take-Two Interactive (TTWO) fell nearly 7% to the Nasdaq 100 and S&P 500 fund, after reporting earnings for the third fiscal quarter.
HVAC Leader Shipping company (CARR) fell 5.9% on the S&P 500 after its fourth quarter report. Underwear manufacturer HanesBrands (HBI) grabbed first place on the S&P 500, up more than 20% and surpassing a cable cup purchase point after its fourth quarter report. Research leader Gartner (IT) also skyrocketed, more than 10% after reporting a major crash in the fourth quarter.
Stocks in purchase ranges or close to purchase points on Monday included Walt Disney (DIS), Microsoft (MSFT), HubSpot (HUBS), Berry Global (BERY) and RingCentral (RNG).
Dow Jones Today: Disney Shopping Range
IBM (IBM) fell 1.6% to the Dow Jones fund today. Shares were up 1.5%, on a third consecutive advance on Monday, driven by news of a cloud computing / artificial intelligence development partnership with Palantir Technologies (PLTR).
Palantir’s shares rose 1.7% on Tuesday. The IBD Leaderboard stock has been volatile, marking breakouts and quickly erasing gains and triggering sell signals. He finished on Monday extended, just over 33.60 buy point.
Disney shares fell 0.7% after leaving a stable base on Monday with news that a gastronomic event is planned for its California Adventure park, adjacent to Disneyland, next month. The shares traded a fraction in the red on Tuesday, after closing Monday at a buying range of 192.67.
Leaderboard: Corsair Gaming earnings
IBD Leaderboard Stock Corsair Gaming (CRSR) reversed its initial gain and fell 5.2% after reporting higher than expected profits and revenues in its fourth quarter. Management also raised its revenue orientation for the entire year well above analysts’ goals.
Corsair shares are below 51.47 purchase points on a 12-week cup basis. An alternative handle entry offers a purchase point at 49.70, although the handle is much deeper than the standard maximum of 13%. This is a flaw, which can indicate an increased risk.
IBD 50: Chegg, Monolithic Power Eye Buy Ranges
IBD 50 stock Chegg (CHGG) recovered more than 5% in the first shares, after exceeding the goals of the fourth quarter, increasing its orientation and predicting that the pandemic shift to online learning is an “irreversible trend”. Piper Sandler increased Chegg’s target price from 110 to 124.
The move put Chegg’s shares in a buying range above a tight three-week buying point at 104.92. The purchase zone goes to 110.17.
Based in China 360 Digitech (QFIN) jumped 12.5%. The stock is working on its seventh consecutive weekly gain, an 89% advance that included a break above 18.16 buying points on a canopy basis. The shares were extended almost 13% above that buying point at Monday’s closing bell.
IBD 50 stock Monolithic Power (MPWR) gained 0.8% as it moved up the buying range from a support rebound to its 10-week moving average. Stuck in the recent volatility among chip stocks, Monolithic’s shares retreated dramatically to test support, despite a stronger-than-expected fourth-quarter report on Thursday. The stock is expected to join the S&P 500 index at the start of trading next Monday.
Global markets, oil prices
Asian stock markets were generally positive on Tuesday. Shanghai Composite was up 2%, an unusual two-day gain as the exchange prepares to close for China’s New Year celebration, which begins on Thursday. The Hong Kong Stock Exchange will close from Thursday to Monday. In Japan, the Tokyo Stock Exchange will close on Thursday for the country’s National Day holiday.
Stock market ETF strategy and how to invest in the current bullish trend
In Europe, markets were closely mixed in the afternoon’s trading. The CAC-40 in Paris was down 0.1%, threatening to break its four-day advance. Frankfurt’s DAX fell 0.3%. London’s FTSE 100 spilled initial losses and gained 0.15%.
Oil prices looked set to burst their seven-day high, but Brent oil remained above $ 60 a barrel, and the American West Texas Intermediate benchmark just under $ 58 – coming close to its $ maximum. 65.65 in January 2020.
Bitcoin rally continues
Bitcoin was traded 7% higher after retreating from hikes earlier than $ 48,000, according to CoinDesk. The cryptocurrency began to recover after Tesla’s announcement on Monday that it bought $ 1.5 billion in Bitcoin and considered accepting the digital script as payment for Tesla cars.
Among actions related to Bitcoin Marathon Patent Group (MARA) rose 13% and MicroStrategy (MSTR) jumped 9% higher. Overstock.com (OSTK) traded down 0.6% after registering a 7.3% gain on Monday.
IBD Leaderboard Stock PayPal Holdings (PYPL), which started processing Bitcoin transactions in October, was up 0.1%. The stock is extended after a rebound in support at its 10-week moving average.
Coronavirus Update: New Cases, Decline of Deaths
The decline continued in the average number of new coronavirus cases reported daily in the USA. The seven-day average peaked at 255,258 on Jan. 11, according to the Worldometer. New daily cases on Monday fell to 110,694 – down more than 56% to the lowest level since November 7, after 28 consecutive days of decline. Deaths began to decline much later, with the seven-day average for reported deaths reaching a maximum of 3,447 on January 26 and decreasing to 2,954 on Monday.
The Centers for Disease Control and Prevention report that, in the United States, 59.307 million doses of the vaccine have been distributed so far. About 42.42 million doses were administered, about 72% of those distributed. On December 30, less than 11.5 million doses were delivered, with about 2.1 million injections administered, an application rate of 18.2%.
Dow Jones Today: Microsoft Online Buying
Among the blue chips, Apple (AAPL) and Nike (NKE) remain below the purchase points at Dow Jones today. Microsoft remains in a purchase range above 232.96 points of purchase, with a purchase zone that extends to 244.61. Caterpillar (CAT) and Goldman Sachs (GS) are extended from rebounds from their 10-week moving averages, but may be shaping base patterns.
For a more detailed analysis of the current stock market and its status, study the big picture.
With the Dow, S&P 500, Nasdaq Composite and Russell 2000 reaching new highs, the market had an exciting start to the year. Hopes for continuous improvement in the Covid-19 framework, combined with optimism for the approach to stimulating the “hot economy” supported by the White House and the Democratic majority in Congress, as well as by the Treasury and the Federal Reserve, suggest that the market may still have fuel to run.
But Monday’s Big Picture made it clear that the Nasdaq and S&P 500 are close to penetrating trendlines touching the index’s highs that date back to November. He also warned that the Nasdaq gap with its 50-day moving average is dangerously high.
Both signal to investors to maintain a cautious stance, as they anticipate recent market gains.
Find Alan R. Elliott on Twitter @IBD_Aelliott
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