The Dow Jones industrial average rose more than 300 points on Tuesday, while technology stocks rose as Treasury yields fell from Monday’s highest. Apple and Tesla shares fell back with sharp gains in morning trading, while Bitcoin jumped.
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Among the Dow Jones leaders, appeal (AAPL) rose 4% on Tuesday, while Microsoft (MSFT) has risen by about 3% in the current stock market. Disney (DIS) advanced outside the buying range on Monday Visa (V) remains in the buying range above a new buying point.
Tesla (TSLA) rose 14% on Tuesday and wanted some of Monday’s 5.8% dip to rebound. After the close Monday, Hide fix (SFIX) reported mixed fiscal Q2 results.
Among the top stocks to watch, Alphabet (GOOGL), Polaris (PII) and Westlake Chemical (WLK) is keeping up well with the current stock market correction.
Microsoft, Polaris and Tesla are IBD Leaderboard shares. Alphabet was in the Stocks Near A Buy Zone column this week. Westlake was Monday’s IBD Stock Of The Day.
Dow Jones Today: Yields Fall
Early Tuesday, the Dow Jones Industrial Average rose 0.9%, while the S&P 500 rose 1.8%. The tech-heavy Nasdaq compound rose 3.4%, recovering from its 2.4% sell-off on Monday.
According to MarketWatch, the ten-year treasury yield rose to 1,617% on Monday before closing at 1,596%. The yield for ten years decreased to about 1.533% on Tuesday morning.
Among exchange-traded funds, the Innovator IBD 50 (FFTY) rose 4% on Tuesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) rose 3.5%. Meanwhile, the SPDR S&P 500 ETF (SPY) rose 1.5%.
Stock market correction
On March 4, the major stock indices sold strongly, while top-growth stocks also crumbled. The Nasdaq closed at its lowest level since January 4 and became negative for the year. The tech-heavy composite ended 2.2% in 2021 on Monday after hitting as much as 10% from January 1 to its record high of February 16.
IBD’s market outlook was downgraded to ‘market in correction’ on 4 March. During such periods of severe stock market weakening, investors need to invest lightly – or even in 100% cash – until a follow-up day. Follow-ups indicate a new potential market development and give the green light to start buying shares again. Currently, it’s day three of a new rally attempt after Friday’s rebound.
Use the pause as an opportunity to break spiritually; however, do not turn on. Look out for the following leaders. One of the best ways to identify the next cycle of leading stocks during stock market corrections is to use the relative strength line. The RS line measures the price performance of the stock against the S&P 500. If the stock performs better than the broader market, the RS line moves upwards. If a stock performs worse than the broad market, the line will show lower.
In the big picture of Monday it is said: “The positive reversal of Friday offers hope for a bottom in the stock market. The Nasdaq fought back from a loss of 2.6% to 1.5% higher that day. But the strong momentum did not transmit on Monday. a late fading market is an indication of underlying weakness. ‘Check out the IBD’s The Big Picture for more comment on the stock market.
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Bitcoin price
Bitcoin collected about 5% on Tuesday and was $ 54,000. The price of Bitcoin, according to CoinDesk, traded around $ 54,400 in the morning action.
The price of Bitcoin peaked on February 21 and was $ 58,332.
The Grayscale Bitcoin Trust (GBTC) ETF wanted to extend a winning streak to three sessions on Tuesday, as Bitcoin’s ETF tracking will continue to rise from its 50-day support level. GBTC advanced 7.2% on Tuesday morning.
Dow Jones shares: Disney, Visa
Within the Dow Jones industrial average, Disney shares slipped more than 1% on Tuesday morning. Shares rose more than 6% on Monday after California indicated that Disneyland and California Adventure could reopen on April 1. It moved the stock past a 183.50 buying point on a flat basis on Monday.
According to the IBD MarketSmith chart analysis, the visa stock is climbing past a buying range above a 211.69 buying point in a cup with handle after a breakthrough on 23 February. The buying zone of 5% rises to 222.27.
Shares rose 1.1% on Tuesday and are moving just outside the buy range.
Shares to watch: Alphabet, Polaris, Westlake
FANG shareholder Alphabet is keeping up with the recent weakness of the stock market. Shares remain expanding from a buyout of 1,843.93 in a flat base and are about 2% of a 2 145.24 entry in a three week tight pattern.
Shares wanted to rebound due to the 4.3% from Monday, which rose more than 2% in morning trading.
Polaris broke past a 129.10 buy point on a flat basis on Friday with a rise of 5.7%. Shares are in the buying zone of 5% ending at 135.56. Polaris’ share rose 0.8% on Tuesday.
According to IBD Stock Checkup, Polaris shares show a solid 90 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating helps investors measure the quality of the fundamentals and technical benchmarks of a stock.
Westlake Chemical, Monday’s IBD stock of the day, gained a buying point of 90.46 amid the 1% advance on Tuesday. Shares ended in the 5% buying zone standing at 94.98 above. The stock rose 0.1% on Tuesday morning.
Westlake was added to the IBD Leaderboard on Monday. According to the Leaderboard comment: “The stock’s last base is a second phase, and the relative strength line is reaching new highs as the stock breaks out. Both are positive elements for the chart.”
Stock Market Earnings: Stitch Fix
After the end of Monday, Stitch Fix reported a loss of 20 cents per share. But sales missed consensus targets. The company reported revenue of $ 504.1 million, less than the analysis estimate of $ 512.2 million.
Stitch Fix shares fell more than 26% on Tuesday. The stock ended below its 50-day high on Monday, about 40% lower than the 52-week high.
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Tesla Stock
Tesla shares wanted to yield a five-day losing range on Tuesday, which was more than 14% higher in morning trading. Shares may form a new base, but it is too early to identify a new entry.
On February 22, the EV leader breaks through a major ten-week moving average line, a critical support level.
On January 25, Tesla shares reached a record high of 900.40, after climbing to 93% from a 466 buy point in a cup with handle. Shares are about 37% less than the everyday high.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones shares, Apple rose 4% on Tuesday after falling 4.2% on Monday. Apple stock remains below its 10-week line, but a strong setback above the level will be positive for the stock’s outlook.
On February 18, Apple shares caused the loss-cutting selling rule of 7% -8% when it dropped more than 7% below the 138.89 buy point in a handle with a cup.
Meanwhile, Microsoft rose about 3% on Tuesday and wanted to fall back from Monday’s fall of 1.8%. The stock remains below its 232.96 buying point and falls below the 50-day line again.
Follow Scott Lehtonen on Twitter @IBD_SLehtonen for more information on growth stocks and the Dow Jones industrial average.
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