[ad_1]
The Dow Jones Industrial Average briefly rallied over 150 points early Wednesday before slashing gains, as tech stocks appeared to recover from two straight days of heavy losses. Apple, Microsoft and Tesla advanced, but Datadog plunged 13% in profits.
X
Among the leaders of the Dow Jones, Apple (AAPL) grew 1.7%, while Microsoft (MSFT) gained 2% in the current stock market. Meanwhile, Salesforce.com (CRM) rebounded from Tuesday’s sale with a 3% lead.
You’re here (TSLA) rebounded 1%, on pace to break a three-day losing streak.
Following the winnings, Datadog (DDOG) plunged 13% early Wednesday.
Stocks in or near buy zones in the stock rally are Berry Global (BERY) and HR (RH).
Tech giants Ali Baba (BABA), JD.com (JD) and Nvidia (NVDA) triggered a key sell signal amid the current market rotation.
JD.com, Microsoft, Nvidia, and Tesla are all IBD ranking titles.
Dow Jones today
On Wednesday, the Dow Jones Industrial Average rose 0.2%, while the S&P 500 was up 0.7%. The highly technological Nasdaq composite rose 1.55% in morning trading.
Among exchange-traded funds, the Innovator IBD 50 (FFTY) gained 2.5% on Wednesday. The Invesco QQQ Trust ETF (QQQ) linked to the Nasdaq 100 traded up 1.6%. At the same time, the SPDR S&P 500 ETF (SPY) gained 0.4%.
Amid the coronavirus stock rally, the highly technological Nasdaq is up 28.8% for the year through Tuesday’s close. Meanwhile, the S&P 500 is up 9.7%, while the Dow Jones is up 3.1% since the start of the year, through to the close on November 10.
Coronavirus Updates
According to Worldometer’s data tracking, the cumulative number of confirmed coronavirus cases in the United States exceeded 10.5 million on Wednesday. The total number of deaths linked to the virus has exceeded 245,000.
The cumulative total of Covid-19 cases worldwide confirmed since the start of the epidemic topped 51.9 million on Wednesday, with more than 1.28 million deaths linked to the virus.
Coronavirus stock market rally
According to IBD’s The Big Picture, the stock market is back in a new uptrend after last week’s bullish price action.
Tuesday’s Big Picture warned of the possibility of continued market rotation, saying, “But the last two sessions indicate that institutional investors may be less thirsty for high-priced tech companies and more thirsty. for industrial, financial, old battered, school energy and retail companies. “
During market corrections, investors should establish watchlists of potential leaders. Now is the time to put those watchlists to work.
Investors should use the recent strength as a green light to buy further breakouts. Start slowly with new purchases and see how they work. After raising cash in the recent correction, don’t rush to get all invested all at once. Try new purchases. If they work, you can add to them; otherwise, you can go back.
In particular, focus on actions with strong relative strength. Find them using the line of relative force. The RS line measures the price performance of a stock relative to the S&P 500. If the stock is outperforming the market as a whole, the RS line is oriented upward. If a stock is performing worse than the overall market, the line will point lower.
Stocks to watch include IBD Long-Term Leaders, companies with stable earnings growth and price performance.
ETF stock market strategy and how to invest
Dow Jones Stocks: Salesforce Breakout Falters
Dow Jones leader Salesforce.com briefly passed a buy point of 270.26 in a double dip on Monday, according to MarketSmith chart analysis. The stock fell below its 50-day line on Tuesday. Stocks rebounded 3% in morning trading.
Salesforce.com is number 2 on the Dow Jones Industrial Average with a 52.3% lead year-to-date through Tuesday.
The Dow Jones top was featured in this week’s Stocks Near A Buy Zone column.
Sell signals triggered by tech giants
Alibaba briefly fell 1% before making up for the losses, adding to Tuesday’s 8.3% plunge. Shares fell after Chinese regulators released draft rules aimed at preventing monopoly practices by internet companies.
China’s premier stock fell more than 7% below a flat base entry of 299.10. Investors should cut their losses if a stock falls more than 7% below the correct buy point.
JD.com fell more than 8% below a buy point of 85.49 in a handle cup on Tuesday. The stock could try to find support for its 50 day line. JD stock reversed after its first losses to rise 2% on Wednesday.
Nvidia triggered a sell signal from the 574.04 buy point of a cup with handle after Tuesday’s steep loss. Nvidia stock fell more than 7% below the new entry. Stocks rebounded 3% in morning trading.
Stocks in or near purchasing areas: Berry Global, RH
Tuesday’s IBD 50 stock pick to watch, Berry Global and Tuesday’s IBD stock of the day, RH, are approaching new buying points in the current stock rally.
Berry Global is in the 5% buy zone above a buy point of 51.77 in a double bottom, according to MarketSmith chart analysis. The buy zone tops out at 54.36. The action added another 1.5% in morning trading.
RH is approaching a buy point of 404.87 in a double bottom, as it rebounds from its key 50-day moving average line. Stocks rebounded 4% on Wednesday morning.
According to the IBD Stock Checkup, the HR stock has a score of 94 out of 99 Perfect Composite IBD. Composite rating – an easy way to identify top growth stocks – is a mix of key fundamental and technical metrics to help investors assess a stock’s strengths.
Stock market benefits: Datadog
Datadog posted strong third-quarter and sales results on Tuesday night amid strong demand for its cloud computing application monitoring software. But revenue growth has slowed with fierce competition in the cloud application monitoring market.
Stocks fell 13% early Wednesday, falling further below their 50-day moving average. The title is over 25% of its 52 week high.
IBD Live: a new tool for daily stock market analysis
Tesla stock
Tesla stock rebounded 1% on Wednesday, on course to break a three-day losing streak. Stocks are still below their 50 day moving average line as the stock continues to build a base with a new buy point at 466. Stocks are around 13% of the entry.
According to the IBD ranking commentary, “The stock forms an awkwardly shaped cup with a handle. We took it down from a half position to a quarter position on October 30, as it closed decisively below the 10 week line for the first time since April 9. After a rally last week, it has now fallen below that benchmark. “
Dow Jones Executives: Apple, Microsoft
Among the main stocks in the Dow Jones, Apple rose 1.7% on Wednesday. Stocks are attempting to hold above their 50 day line after recovering this key level last week.
The blue chip giant is the No.1 Dow Jones stock for 2020, up 58.0% through Tuesday’s close.
Software giant Microsoft rose 2% on Wednesday, recouping part of Tuesday’s 3.4% drop. Stocks are back below their 50-day threshold after hitting key levels last week.
Since the start of the year, Microsoft has been one of the main stocks in the Dow Jones, rising 33.8% until the close on November 10.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and Dow Jones futures.
YOU MAY ALSO LIKE:
Top growth stocks to buy and watch
IBD ETF Market Strategy
Long-term IBD leaders
Get full access to IBD’s stock listings and ratings
Looking for the next big winners in the stock market? Start with these 3 steps
[ad_2]
Source link