Dow Jones Futures: Stock Market Rises, Tesla sees healthy declines as Biden’s stimulus buzz dwindles

Dow futures contracts will open on Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rally declined last week as the buzz of Biden’s stimulus package began to fade. But it was a constructive retreat.

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The major indices fell slightly, holding the short-term moving averages and leaving the long-term moving averages behind. Some flashy market areas – like new IPOs like Yatson Holdings (School) – suffered heavy losses or severe setbacks. Tesla (TSLA) It rolled back, but after it looked like it was going peak-to-run the electric car maker feels anti-climax, which is a good thing.

American tech giants do not participate. Apple stock, the only one that appeared to be trying to perform well, took a heavy toll. Most of them have been behind the stock market rally for months and are stuck below their 50 day moving averages, including Microsoft (MSFT), The social networking site Facebook (FB) And Netflix Stock. Netflix (NFLX) Earnings reports on Tuesday, with Walt Disney (Dis) And Disney + quickly became a serious competitor. Disney stocks have performed much better than Netflix for several months.

Cyclical stocks still look strong. Eastman Chemical’s stock faded just below the buy point. Eastman Chemical (EMN) Earn in 2 weeks as earnings season reaches full steam. JPMorgan shares rose last week and flirted with a buy point from a Long deep base. C. B. Morgan Chase (JPM) Earnings easily outpaced views on Friday, but JPM stock declined.

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The chip sector remains strong overall. Apple iPhone supplier and 5G wireless play Qualcomm (QCOM) Flirt with A. Point purchase last week. QCOM stock is still feasible now.

Rhythm design systems (CDNS) And the Synopsis (SNPS), Which makes software for designing semiconductors, both of which are just below the range of recent breakthroughs. But the CDNS and SNPS stock was created Three tight weeks Patterns – a drawing.

Match set (MTCH) Try to open a narrow pattern last week, and reverse the downtrend. But Match share rebounded from main support on Friday.

Biden buzz stimulus fading?

President-elect Joe Biden unveiled a $ 1.9 trillion stimulus plan Thursday night, but that did not support Friday’s stock market rally. Biden’s motivational hype fueled cyclical fluctuations and the broader market in the new year. The Democratic victory in the Georgia Senate runoff to consolidate control of the government makes it likely much of Biden’s stimulus plan will be passed.

However, with a slim majority in the House and Senate, Biden’s stimulus plan could face major changes. Meanwhile, Biden also says he will propose another big spending bill later in the year, but that will come with big tax increases for corporations and capital gains.

Biden incentive: Checks now, tax hikes soon

Apple, Microsoft and Tesla stocks are on IBD Leaderboard. Apple Stock and Match are on SwingTrader. Microsoft stock is located at List of IBD Long-Term Leaders. The CDNS and SNPS repository is in a file IBD 50.

Dow Jones futures today

US exchanges are closed on Monday due to the Martin Luther King holiday, but Dow Jones futures contracts will open at 6 PM ET on Sunday, along with S&P 500 and Nasdaq 100 futures. Dow Jones futures will continue to trade for most of Monday.

Remember to work on overnight Dow Jones Futures And anywhere else it does not necessarily translate into actual circulation in the next normal cycle Stock market session.

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Coronavirus news

The number of coronavirus cases worldwide has reached 95.16 million. The death toll from Covid-19 has exceeded 2.03 million.

The number of coronavirus cases in the United States has reached 24.32 million, with the number of deaths exceeding 405,000.

New Coronavirus cases in the United States have trended downward for the past several days, but are still very high. Hospitalizations are starting to show a little.

The stock market rose last week

The stock market rally has retreated from record highs. The Dow Jones Industrial Average decreased 0.9% in the past week Stock market trading. The S&P 500 and Nasdaq Composite are down 1.5%. QQQ, which tracks the Nasdaq 100, slid 2.25%.

Apple’s stock fell 3.7%, retreating from its value 21-day exponential moving average And approaching the 10-week streak. Netflix share Amazon.com (AMZN), Microsoft, Service now (right NowLost 2-3%, Salesforce.com (CRM) And Google parent the alphabet (GOOGLAbout 4% drowned. Adobe (ADBESlide 5.6%. Facebook is down 6.1%, rallying on Friday to get back above the 200-day streak.

between the The best ETFs, The Innovator IBD 50 ETF (fifty(Up 2.9%, while the Innovator IBD Breakout Opportunities ETF)fitIt jumped 3.3%. IShares Technology and Software Extended Fund (ETF)IGV2% drowned. MSFT, Adobe, ServiceNow, and Salesforce stocks weighed IGV, while CDNS and Synopsys stocks are also holdings. VanEck Vectors Semiconductor Foundation[symb=SMH] Advance 1.9%, with Qualcomm shares the main component.

Stock to watch

Qualcomm’s stock rose to 163.18 last week, briefly spending a Flat base However, it never closed above the 161.17 buy point, according to MarketSmith Analysis. QCOM stock ended the week at 157.09. Only 4.8% above the ten-week streak is Qualcomm still feasible.

Note that major customer Apple will report back within two weeks, while Qualcomm’s earnings will be in three weeks.

Eastman Chemical stock fell 0.9% last week to 104.78, just below 104.93 fixed base buy times. But EMN stock found support at the 21-day line. Eastman’s earnings are due January 28.

JPM stock rose 1.9% last week to 138.64, posting a brief record high and clearing 141.20 buy-points from a year-long merger. With the economy potentially gaining a stimulus and expanding Treasury yields, bank profits should improve in 2021. While GBMorgan’s profits declined in 2020, they rose 9% in the third quarter and 47% in the fourth quarter.

Cadence Design stock fell 1.1% last week to 134.64, but continued to maintain support at the high 21-day streak. CDNS exceeds the 5% stalking region of a previous flat base. The three-week narrow entry is 138.74.

Synopsys stock rose 0.4% to 258.92, and also found support at the 21-day streak. SNPS stock barely falls within the 5% hunt zone from its previous flat base. However, investors may want to pay attention to the narrow entry at 264.72.

Euphoric Retreat

Upon seeing some of the cheerful areas of the market there is a reminder that obsessive stocks can have frustrating days. Investors got used a lot to new IPOs, which were already rich in value, rising 10% or more for several days.

Yatsen stock rallied 13.4% on Thursday, moving into buy territory, but then dipped 13.4% on Friday. While still up 2% during the week, anyone who bought YSG stock from the official point of purchase suffered severe losses. Airbnb (ABNB) And the Powered by Dash (dashHe made big weekly gains. But they pulled back late in the week, closing below their official buy points after the high race.

Electric car stocks also suffered a reversal. New (NIO) Rose 6.4% on Monday to a new high in Nio Day news. But Nio stock ended the week down 4.5%. Li Auto (In theIt jumped 12% on Tuesday and ended the week 5% lower. Xpeng (XPEVIt closed up 5%, but gave most of the 22% rally on Tuesday.

Tesla Stock

Tesla was down 6% last week, but that seemed to be relatively modest and to be controlled, especially after a 25% rally the previous week. This massive rally in Tesla shares triggered several peak signals, adding to the risks of a big sell-off. But TSLA’s stock has neither accelerated nor broken. Ideally, Tesla will hold together for several weeks, forming a base and allowing key indicators to catch up. Of course, TSLA stock didn’t touch the 10-day streak last week. It’s still 35% above the 50-day streak. Not in the range of purchase.

Tesla profits in two weeks, focusing on production, delivery, and updates to Cybertruck and two factories under construction. Deliveries of the Tesla Model Y began in China this month, welcoming several competitors, including the Nio EC6 and soon VW ID.4.

Stock market rise analysis

Major indices fell last week, but not too badly. On Friday, the Nasdaq found support at the 10-day line. The Dow Jones, S&P 500 and QQQ indices held their index at a 21-day exponential moving average.

The modest decline also curbed the Nasdaq index, which was extended. The composite is now 4.6% higher than the 50 day moving average versus the 8% at the end of the previous week. As long as the Nasdaq is within 6% of that key level, the risk of a downturn in the near term is relatively low. Meanwhile, QQQ is 2.9% above 50 days, with the S&P 500 and Dow up 2.7%.

A modest decline in major indices, more significant losses in tech giants, and a sharp decline in IPOs and other speculative stocks could dent bullish sentiment.

The Read Bulls vs Bears It has had bullish tendencies near the highs of several years, at levels often associated with peaks. Meanwhile, the buy / sell ratio, CBOE volatility index and other psychological indicators. At its lowest in a long time. Marginal debt is rising strongly compared to the previous year. They are not at very high levels historically, but the leveraged ETFs and the increased use of options may mask investors’ exposure to risk.

In the next few weeks, the stock market rally is likely to take a cue from earnings season. But Biden’s motivational hype may return as Congress works on another relief package.

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Rally Market game plan

Take into account your overall market exposure. Major indexes just touched their 10 or 21 day lines, but many hot stocks suffered big losses on Friday and throughout the week. Imagine the impact on your portfolio if the Nasdaq index falls below the 50-day line or less.

Are you extremely exposed in IPOs or other areas of speculation? Are you stuck in a lot of big tech like Apple or Microsoft stocks. Having some in your portfolio might make sense, but with these unfortunate giants here, you don’t want to miss out on a strong stock market recovery. Do you have any periodic stock. Don’t let technology or growth bias stop you from thinking stocks and sectors are now thriving.

After deciding on any broad adjustments, come up with a game plan for your stocks. What’s your streak in the sand for a partial profit and a whole sale? Do you have enough cushion to retain profits? Make these decisions on the weekend or outside of trading hours and then stick to these rules. You don’t want to panic selling or panic over a freeze when the market is moving.

Make sure to look at the daily and weekly charts. The drop may seem worrisome on a daily basis but less than that in the week.

Read The Big Picture Every day to keep up with the market trend, stocks and leading sectors.

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