Dow Jones futures changed little late Wednesday, along with S&P 500 futures and Nasdaq futures. The stock market rally had a mixed session on Wednesday, with the Dow Jones record high, while many growth names struggled. The Bitcoin price has risen above $ 52,000.
X
Federal Reserve officials did not expect to begin scaling down their giant asset-buying program for some time, according to the newly released minutes of the Fed meeting in January. Meanwhile, it Tesla (TSLA) fell from key support as Cathie Wood of ARK Funds said it was buying more Tesla shares because “our confidence in Tesla has grown.” But appeal (AAPL) key levels suppressed.
Meanwhile, communication software manufacturer Twilio (TWLO), Canadian pot producer Tilray (TLRY), Leading Network Leader Quickly (FSLY), Chinese search giant Baidu (BIDU), manufacturer of genomic instruments 10X Genomics (TXG), fertilizer specialist Mosaic (MOS), lithium mines Albemarle (ALB) and Manufacturer of Software Design Software Synopsys (SNPS) was the most important merit overnight.
Twilio shares and Tilray were big winners overnight, while Mosaic and Baidu shares rose modestly. ALB stock, Fastly and Synopsys declined slightly while TXG stock was not active.
In general, these stocks are not close to the point of purchase, whether they are too expanded or cheaper. Mosaic stock, which gained a brief consolidation on Tuesday.
Apple shares and Tesla are on IBD Leaderboard.
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Dow Jones Futures Today
Dow Jones futures fell 0.1% to fair value. S&P 500 futures and Nasdaq 100 futures were largely unchanged.
The Bitcoin price rose above $ 52,000 on Wednesday, a day after reaching $ 50,000 for the first time. Bitcoin stays above $ 52,000 in late afternoon trading. Cathie Wood, who bought Bitcoin-related plays, said the cryptocurrency could earn $ 200,000 if more companies join Tesla to buy Bitcoin.
Remember that overnight actions in Dow futures and elsewhere are not necessarily translated into stocks in the next regular session.
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Coronavirus News
Coronavirus cases worldwide reached 110.39 million. The deaths from Covid-19 were 2.43 million.
Coronavirus cases in the US hit 28.44 million, with deaths above 502,000.
Fed signals have not been in effect for some time.
Strong retail sales and other economic data early Wednesday apparently halted growth stocks in public. A stronger economy is good news, equal in all respects. However, the strong reports ease the pressure to pass on a major new stimulus, although a major package is still likely. The ten-year treasury yield has also risen over the past few weeks and moved slightly higher on Wednesday.
However, the Federal Reserve is in no hurry to take the fist away. While some Fed officials may be concerned about asset prices, Fed Chairman Jerome Powell and the central bank are focused on reviving economic growth and employment. The Fed meeting announced Wednesday afternoon made it clear that policymakers will keep cheap money in financial markets and the economy.
Stock market rally Wednesday
The upswing in the stock market started badly for growth stocks, at least as the morning wore on. But ARK Funds CEO Cathie Wood discussed the Tesla share. At 14:00 ET, the minutes of the Fed meeting were announced.
The Dow Jones industrial average rose 0.3% in equities trading on Wednesday as industrial, financial and fertilizer manufacturers and other real-economy equities performed well. The S&P 500 index closed just below fair value. The Nasdaq composite fell 0.6%, near the highest sessions after falling 1.7% intraday.
Tesla Stock A Buy?
Tesla’s stock fell to as low as 762.08 intraday, almost hitting its 50-day line and breaking the ten-week average. However, the stock rose to close 0.2% to 798.15. Cathie Wood said she still buys shares from the EV manufacturer. Wood once again expressed ‘confidence’ in Tesla’s potential for self-driving. Wood has long been a builder of Tesla’s self-driving efforts, even as autonomous experts raise criticism and more competitors test real self-driving vehicles.
This is the first 50-day / ten-week test of TSLA shares since the breakthrough in November, so it could be a buy signal. However, Tesla’s share remains below the exponential moving average of 21 days, an area of resistance in recent days.
Apple stock
Apple stock did not perform so well, falling 1.8% to 130.84, closing lower than the 50-day and 10-week lines. Shares are falling further from a buy point of 138.89 cups with handles. The relative strength line for Apple shares continues to blur. Apple shares are not yet flickering a big sell signal – it’s only 1.2% below the 10-week line – unless you’s 7% -8% lower than your purchase price.
Growth stocks had a rough starting point, with valuable software names and speculative stocks getting hits, although they compared losses.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell 1.7%, while the Innovator IBD Breakout Opportunities ETF (BOUT) lost 2%. The iShares Expanded Tech-Software Sector ETF (IGV) declined by 1%. The VanEck Vectors Semiconductor ETF (SMH) fell 1.9%.
The ARK Innovation ETF (ARKK) lost 2.1% and ARK Genomic Revolution (ARKG) 1.8%.
Important earnings
Twilio earnings beat the view, while revenue leadership was strong. Twilio share jumped 10% overnight, which was a record high. TWLO share fell 2.3% to 411.65 on Wednesday.
Tilray reported a smaller-than-expected loss while sales barely beat. Tilray share rose 8% in expanded trading. But this is not a big step for this marijuana stock. TLRY shares tumbled 9% to 31.51 on Wednesday, well below the February 67 high.
The quick earnings only beat the quarterly view, but the lead ranged from in line to slightly below consensus. FSLY share retreated 3.5% in overnight trading. The stock fell sharply 2.7% to 94.85 on Wednesday, a fifth consecutive decline. Equities were in a broad and loose consolidation that seems more suspicious at the current stage of the stock market.
The Baidu earnings easily reached forecasts, but sales missed. Baidu share rose 2.5% in expanded trading. The BIDU share fell 5.4% on Wednesday, hitting an 11-day winning streak to a record high.
10X Genomics reported a big loss, but sales rose 49% and topped the view. 10X shares have not been active overnight yet. TXG shares fell 2.5% on Wednesday after falling from a record high on Tuesday.
Mosaic earnings easily surpassed the consensus. MOS stock climbed 2% with expanded action. Mosaic shares fell 0.7% on Wednesday after reaching a brief consolidation on Tuesday.
The earnings of Synopsys are better than the first quarter of the fiscal. SNPS share fell 1% overnight. Synopsys declined 2.4% on Wednesday after reversing lower from a record high on Tuesday. According to MarketSmith, according to a MarketSmith analysis, the SNPS stock has expanded from a 246.79 flat base buying point.
Albemarle’s earnings were above forecasts. ALB share fell 2.5% in extended trading. The Albemarle share fell 2.9% on Wednesday, breaking its 50-day line after turning lower to below its 21-day line on Tuesday. Investors may buy a return of ALB shares from the 50-day line, but will likely have to wait for a move above the 21-day or even Tuesday’s intraday high of 171.35.
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Stock market time analysis
Whether you want to call Wednesday’s session a downturn or a rotation, the stock market moved out of the leading stocks on Wednesday.
Is it just another 1-day break or the start of a one-week setback or something more serious? The Nasdaq is now 6.2% above its 50-day moving average. This is from recent highs, but still slightly extended. The Nasdaq did not even close below the ten-day line. A retreat to the exponential moving average of 21 days or even the 50-day line can still be seen as a relatively modest setback, especially if the market rebounds. However, there is always the possibility that this withdrawal will last deeper and longer.
The Nasdaq never hit its 21-day line on Wednesday, but many growth names fell more than 5% or more, contributing to Tuesday’s losses.
The playing time of the market is over
Powerful meetings in the stock market are great, but they can lead to bad habits. If you have been leveraging hard for the past ten months, buying the most popular names, adding and not worrying about sloppy consolidations, your portfolio has made tremendous profits.
Investors who bought the dip in the Nasdaq or Tesla stock were rewarded again for at least a few hours on Wednesday. Perhaps growth stocks will return to a record high again.
But if you trade a wild, unstoppable stock market march in the long run, your portfolio is going to inflate.
It’s time to dump her and move on. The focus is on the best stocks.
Remember, the best stocks and quality bases may not be in traditional growth names. If nothing else, investors need to expand their horizons to cyclical and financial.
Read the big picture every day to keep up with the market direction and leading stocks and sectors.
Please follow Ed Carson on Twitter @IBD_ECarson for stock market updates and more.
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