Dow Jones Futures: Big Stock Market Rises Are a Bad Milestone Analysis of Tesla, Bitcoin, Microsoft

Dow futures will reopen on Sunday evening, along with S&P 500 and Nasdaq futures, after the stock market rally showed resilience last week. Bitcoin traded below $ 56,000 after rising again last week to new highs.

X

Solar Power IPO Scholes Technologies (SHLS), Qorvo 5G chipset and Max Linear (MXL), The giant of the Dow Jones Microsoft (MSFTAll close Buy points, With SHLS stocks, Microsoft already executable, and Apple supplier Corfu (QRVOIt can be said so. We’ll also look at Tesla (TSLA), Which continues to test key levels.

The Dow actually rallied while the S&P 500 and S&P 500 indices modestly declined, raising short-term support. Growth stocks, especially the most speculative names, suffered largely large losses, although they generally rebounded on Friday. Metals, Mining and Financial Equities performed strongly.

However, the last action highlights the need for proper entries and sound selling rules. The problem with such a strong rally in the stock market is that it is a bad landmark. Just like A Easy, everyone has easy money. But if you rely on the wrong lessons from the past 10 months, that easy money will quickly disappear.

While the Nasdaq is no longer expanding, marginal debt and investor exposure in general is a growing concern.

Why simplify this IBD tool burntthe classroom For the highest stock

Tesla and Microsoft stocks are working IBD Leaderboard. MSFT Arrow is on Long-term leaders of IBD. SHLS stock is IBD stocks today. MXL stock is a focus Inventory analysis of IBD vertical.

Dow Jones futures today

Dow Jones futures will open at 6 PM ET on Sunday, along with the S&P 500 and Nasdaq 100 futures.

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 Period.

Join IBD experts as they analyze actionable stocks up the stock market on IBD Live.

Coronavirus news

The number of Coronavirus cases worldwide has reached 111.24 million. Covid-19 deaths topped 2.46 million.

The number of Coronavirus cases in the United States has reached 28.60 million, with the number of deaths exceeding 507,000.

The stock market rose last week

The stock market rally saw a mixed week, with a small turnover from growth stocks to the periodic and financial data.

The Dow Jones Industrial Average rose 0.1% in the past week Stock market trading. The S&P 500 is down 0.7%. The Nasdaq Composite Index retreated 1.6%, but rebounded somewhat from its level 21-day exponential moving average.

Growth stocks were higher in the middle of the week, but Friday’s gains helped limit losses overall.

between the The best ETFs, The Innovator IBD 50 ETF (fiftyIt fell 0.6% last week, thanks to a 2.15% penetration gain on Friday. The Innovator IBD Breakout Opportunities ETF (fitIt fell 0.2% last week. IShares Technology and Software Extended Fund (ETF)IGVIt decreased 1.4%. Microsoft stock is the IGV’s highest holding. (VanEck Vectors Semiconductor Foundation)SMH) Lost 0.3%, with QRVO share component.

Losses were heavier in more guessed names. ARK Innovation ETF (Ark), Which owns shares of Tesla and several other companies, down 2.5%, even as the 2.3% bounce on Friday. ARK Genomics Revolution ETF (ARKGFalling 4.1% last week, with several major holdings taking a big hit.

Bitcoin price rises

While speculative stocks suffered a bit, Bitcoin remained hot, topping $ 50,000, $ 52,000 and finally $ 56,500 on Friday. It traded for less than $ 56,000 on Friday night.

With the widespread acceptance of cryptocurrencies and Tesla CEO Elon Musk continuing to drive the scale, Bitcoin has a lot of momentum. While Bitcoin does not have fundamentals per se, investors can still trade it on a technical basis. Shares linked to Bitcoin and Bitcoin are moving vertically. Bitcoin’s decline wouldn’t be a surprise, even if it was only temporary.

SHLS share

Shoals jumped 5.9% last week to 40.17, with nearly all of the gains on Friday. The SHLS stock is now executable, just above 40 early entry before. The official buy point is 41.86, according to MarketSmith Analysis.

The The primary offering He has a lot of positive qualities. Shortly after the IPO in late January, SHLS corrected just 16%. On Friday, and Relative strength line It reached a new high with the arrow remaining at the base. This is particularly bullish, giving the Shoals stock a blue point at the end of the RS line on the MarketSmith chart.

Shoals Technologies manufactures a variety of equipment for solar systems and components to transmit electricity from solar panels to inverters. It is already profitable, with good sales growth.

Max Linear Stock

MaxLinear stock rose 3.3% to 38.33 last week, including a 5.8% jump on Friday. That’s just under the 38.81 buy-point of the seven-week consolidation. Over the past two weeks, bullish days have been higher than the lows.

MXL stock RS streak is close to record high.

The 5G chip maker posted explosive growth in the most recent quarter: profits rose 144% versus sales growth of 178%.

Corfu Stock

Qorvo stock jumped 4.8% on Friday to 179.39, turning a weekly loss into a gain of 1.9%. Friday’s bounce off the 50 days / 10 week line also pushed the QRVO stock above the 21 day line and even the edge of the sloping trend line down. Investors can buy the Apple iPhone chip supplier here or wait for more strength to clear the downtrend.

Qorvo stock is operating on the base with a potential of 191.93 official buy points. It needs another week to get a flat base, although the 15.01% hair is very deep. Investors may want to initiate a position at least from a 10-week line or trend line. QRVO stock has made strong gains over the past few months but had a tendency to rally and then pull back to the top of the previous consolidation before bouncing back.

While Qorvo stock had a strong week, major customer Apple did not. Apple shares fell 4.1%, closing 1.9% below the 10-week streak.

Microsoft stock

Microsoft shares fell 1.6 percent to 240.97 points. This was just a very large drop to form a three-week tightness, although investors could use 246.23 as additional input. MSFT stock is still in the range of 232.96 buy points

Technology giant Dow Jones has been thriving on cloud computing. Microsoft’s profit growth has accelerated over the past two quarters. The revenue gain of 17% in the latest quarter was the best in years.

Tesla Stock

Tesla shares fell 4.3% last week, at 781.30. Shares bounced off the 50-day streak on Wednesday – as Cathy Wood of Ark Funds expressed increased “confidence” in Tesla stock, saying it was buying more shares. But TSLA stock ended the week just below the 10-week streak.

Earlier this month, this column reviewed a file Taurus stock case Tesla From a technical point of view. All these conditions still exist and have improved in some ways. TSLA stock rebound from the 50 days / 10 week line may provide a buying opportunity, but investors may want to wait to see if TSLA stock can recover its now-declining price for 21 days. As Tesla continues to move sideways, the downward sloping potential trend line becomes less steep. Also, if Tesla starts to rebound, it will soon have a new base.

But what is the bear’s condition for Tesla from a technical standpoint? Well, it’s been lagging behind the market for the past few weeks, which isn’t a big deal yet. The speculative names are facing some pressure, and TSLA has seen a massive hit. Analysts’ price targets on Tesla stock place heroic assumptions about the company’s sales, autonomous prospects and much more for the next decade.

TSLA stock is hitting the resistance at the 21-day line, at least for now.

Keep in mind that a 50 days / 10 week streak test is a test. A successful test may provide a new buying opportunity, but failure may lead to a sell signal.

If TSLA stock declines decisively through the 50 days / 10 week line, what is the next support area? Maybe it’s 695, the price at which Tesla entered the S&P 500. Beyond that, you are looking at the previous base high of around 500. The 200-day streak is now around 450, not far from the November breakout buy point at 466.

All of this would be a feature of TSLA stock, especially if the market falls into a correction. Even on the massive run from late 2019, Tesla stocks had some deep rules.

So if investors buy Tesla shares at or near these levels, price that further away from the 10-week line and be prepared to sell. The critical breakout could be a signal for long-term investors to take more profits.

Tesla is arguably the most important stock in the market rally. It is the ultimate story share, with massive market capitalization. Connectivity options helped support its operation for 2020. Ark Funds is a major investor and champion in Tesla stocks. The EV maker bought $ 1.5 billion worth of energy-hungry bitcoin.

If Tesla identifies a major high, this could trigger or coincide with the top of the large stock market.

Stock market analysis

Last week, the Nasdaq saw a slight pullback, finding support where you’d expect it at the 21-day line. Has the retreat or rotation ended with speculative growth? Friday’s lackluster move, with the Nasdaq index closing near session lows, was not an inspiration.

If the stock market recovers quickly, how much can it play? The Nasdaq index closed on Friday 5.1% above its 50-day moving average. This isn’t as stretchy, but it’s not far from being so again.

Meanwhile, other indicators continue to flash warning signs. Debt margin increased 42% in January versus a year earlier. This is the largest number since late 2007, although it is still below its 55% annual gain associated with major markets. However, the rise of leveraged ETFs and the increasing use of call options indicate that an investor’s leverage is much higher than margin debt alone. Also, year-on-year debt margin comparisons will become easier in February and March, as investors walked out during the coronavirus crash.

All this leverage for investors, fueled by Fed policy, stimulus checks and millions of Americans stranded home in an era of fee-free trading, helped drive the massive recovery in the stock market. But if the market has prominent Correction, this could lead to a significant decrease in leverage, leading to further selling.

For the time being, the stock market rally still looks strong. Over the past 10 months, withdrawals have generally been shallow and short-lived. Even the two-month correction last fall was relatively modest regarding the correction. But at some point, the stock market rally will turn into a major correction or bear market. Enjoy this stock market rally, but be disciplined and prepare for a change of character.

What are you doing now

Big rallies in the stock market make bad teachers. But at this point in the rally, investors must follow the rules and do their homework.

Check out your individual collections and public exposure. You have a game plan for your stocks and Test your portfolio stress.

It is a good idea to watch or rewatch on Wednesday IBD Live Show featuring David Ryan. Ryan stressed the importance of focusing on sound grammar and the necessity to sell grammar. Ryan also noted the strength in several cyclical and financial stocks.

Investors can focus on the blue chips but it is good to have leadership diversity. Several mining, agricultural and banking stocks have performed strongly in recent months. Having some of these names can help avoid a major drawback in your wallet. Having pilot positions in a variety of top groups will help you stay aware of the strengths in those areas. This may lead to more buying in those areas, especially if the busy areas of the market encounter more problems.

All this means being cautious and being cautiously bullish, not bearish. The stock market rally remains strong. There are good reasons to invest big.

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

Please follow Ed Carson on Twitter at IBD_ECarson Stock market updates and more.

You may also like:

Do you want to get quick profits and avoid big losses? Try SwingTrader

Best growth stock to buy and monitor

IBD Digital: Open IBD’s premium stocks, tools, and analytics today