GameStop falls 91% from its peak in 2021 as Dow Jones cuts losses; These growth stocks are breaking out

GameStop showed the true value of a loss-cutting selling line, as shares fell another 5% to as low as 43.22. This is a free fall of 91% from its everyday high of 483 by brigade-decorated wall-street bets. Meanwhile, the Dow Jones industrial average dried an early 1.1% to a much more manageable drop of 0.3% with about an hour to go Thursday. session.




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GameStop (GME) shares are still 127% higher since January 1 amid Thursday’s congressional hearing on extreme volatility in the stock market last month.

The golden rule of investing is to shorten losses – ideally to a maximum of 7% -8% – and to let winners ride.

For strong action, watch the regular session up close Handelsbank (TTD), Applied materials (AMAT) and Roku (ROKU). All three major indices ended better than the coronavirus accident on March 23 last year.

IBD announced a new uptrend on April 2 of the same year.

The reason: the S&P 500 offered an important follow-up day with strong gains on the session in heavier NYSE turnover over the previous session.

That important day comes on Day 8 of a new rally effort after the key indices completed their declines in the bear market.

On Thursday, other key indices reduced significant losses in the morning.

The S&P 500 fell by about 0.4%, while the Nasdaq 100 tracking Invesco QQQ Trust (QQQ) reduced its loss to 0.6% after falling more than 1.5%.

Note a daily chart on MarketSmith or Leaderboard of how QQQ is testing institutional buying support against the exponential moving average of 21 days.

Beyond GameStop: 2 new breakouts

Meanwhile, it Wells Fargo (WFC) held on after the notable outbreak on Wednesday.

Consult the notes on WFC’s daily and weekly charts on Leaderboard to identify the correct purchase point and the 5% purchase zone.

Wells Fargo benefits from the possible removal of growth-restrictive restrictions from the Federal Reserve; read more in this new IBD Stock Of The Day story.

Wix.com (WIX), which was discussed in the IBD Live show on Thursday, also made a beautiful outburst.

The website design expert surpassed the top of a consolidation base of nearly six months which showed a buying point of 319.44.

Shares rose 13% in a massive turnover that is already the highest for a single day since August.

Note how the stock frequently hits upside resistance near 300, as it has carved out a new chart pattern.

One could therefore buy shares because it eased short-term resistance at 298.84, 10 cents above the intraday high of October 14.

Wix posted a net loss of 3 cents per share in the fourth quarter, but sales growth increased, by 38% to $ 282.5 million. In the previous three quarters, the company achieved a higher year-on-year increase of 24%, 27% and 29%.

For now, the street expects Wix.com to post a net loss of 31 cents per share in 2021 versus red ink of 44 cents in 2020, and then bounce back into black with a gain of 38 cents per share in 2022.

Wix.com, a major capital company, has 55.4 million shares outstanding.

Follow Chung on Twitter: @saitochung and @IBD_DChung

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