GameStop showed the true value of a loss-reducing sale rule, as the shares fell another 5%, trading from 43.22. This represents a 91% free fall from its 483 bullish wallstreetbets brigade. Meanwhile, the Dow Jones Industrial Average squeezed an initial 1.1% drop into a much more manageable 0.3% drop in about an hour. for the end of Thursday session.
X
GameStop (GME) Shares are still up 127% since January 1 amid Congressional hearing on Thursday about the extreme market volatility last month.
The golden rule of investing is to reduce losses – ideally by 7% -8% at most – and let the winners ride.
Watch out for strong action after the regular session nearby Commercial counter (TTD), Applied Materials (AMAT) and Roku (ROKU). All three have outperformed the major indexes since the coronavirus crash ended on March 23 last year.
The IBD indicated a new upward trend possibly underway on April 2 of the same year.
The reason: the S&P 500 staged an important follow-up day, with a strong gain in that session in a higher volume of business on the NYSE compared to the previous session.
This important bullish day came on Day 8 of a new rally attempt, after the major indices completed their market declines.
On Thursday, other major indexes reduced significant morning losses.
The S&P 500 fell about 0.4%, while the Nasdaq 100’s Invesco QQQ Trust (QQQ) reduced its loss to 0.6%, after falling more than 1.5%.
Observe on a daily chart on MarketSmith or the Leaderboard how QQQ is doing an institutional purchase support test on the 21-day exponential moving average.
Beyond GameStop: 2 new breakouts
About that, Wells Fargo (WFC) remained firm after Wednesday’s notable flight.
Please refer to the notes on the daily and weekly WFC charts on the Leaderboard to identify the correct point of purchase and the 5% purchase zone.
Wells Fargo is benefiting from a likely removal of restrictions that hamper the Federal Reserve’s growth; read more in this new history of IBD day stock.
Will Wix.com be a market leader in 2021?
Wix.com (WIX), discussed at the IBD Live show Thursday, also made an impressive explosion.
The website design expert surpassed the top of a nearly six-month consolidation base, which showed a buying point of 319.44.
Shares jumped 13% in the massive turnover, which is already the biggest in a single day since August. The 5% buying zone rises to 335.41.
Notice how the stock often hits bullish resistance close to 300 when creating a new chart pattern.
So, someone could have bought stocks since it eliminated short-term resistance at 298.84, 10 cents above the October 14 intraday high.
Wix posted a net loss of 3 cents per share in the fourth quarter, but sales growth accelerated, from 38%, to $ 282.5 million. The company recorded increases in annual revenue of 24%, 27% and 29% in the previous three quarters.
For now, Street expects Wix.com to post a net loss of 31 cents per share in 2021 against the red ink of 44 cents in 2020, and then recover profit at a profit of 38 cents per share in 2022.
Wix.com, a large capitalization, has 55.4 million outstanding shares.
According to the IBD Stock Checkup, Wix receives a rating made up of 55 on a scale of 1 (diminished) to 99 (magical). A net loss in 2020, piercing the stock’s earnings per share to 7, in fact undermines the composite score. However, the stock’s Relative Strength Rating 82, a strong upward relative strength line and the Accumulation / Distribution Rating B are clearly favoring Wix. The shares are now 37% above the year to date.
In other markets
Investors halted the sale of long-standing United States government bonds after another week of gloomy employment figures.
The Labor Department reported that initial claims for unemployment benefits for the week ending February 13 jumped to 861,000, eclipsing the Econoday forecast of 773,000. The previous week’s total was revised to 848,000 initial complaints. Meanwhile, the Philadelphia Fed’s monthly manufacturing survey fell to 23.1 in February from 26.5 in January, but still exceeded the consensus forecast of 20.
The yield on the 10-year Treasury reference note remained at 1.29%, but is still up sharply at 0.93% at the beginning of 2021.
The three-month Treasury accounts remain extremely low at 0.03%.
On Friday, the 30-year bond yield rose again above 2% and is now at 2.08%.
Oil and gas stocks reversed downward Thursday amid a 1% retracement in West Texas Intermediate crude futures to $ 60.52 a barrel.
Follow Chung on Twitter: @saitochung and @IBD_DChung
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