Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, traded in a mixed fashion as congressional stimulus talks wrapped up on Tuesday evening. Dow Jones leader Apple broke through a new buy point, while Tesla rival Nio rebounded strongly from a key support level during the stock rally fueled by the coronavirus vaccine and Tuesday’s relaunch.
Tech giants Advanced Micro Devices, Apple, DraftKings, Nio, and PayPal are in or near new buying areas in the current stock rally.
The Dow Jones Industrial Average rose 1.1%, or 337 points. The S&P 500 rose 1.3%, while the high-tech Nasdaq composite rose 1.25%.
Among the leaders of the Dow Jones, Apple (AAPL) jumped 5%, while Microsoft (MSFT) fell less than 0.1%. Tesla (TSLA) went from initial gains to a 1% decline, just below all-time highs.
Stocks in or near buy zones in the current stock rally are Advanced micro-systems (AMD), Apple, DraftKings (DKNG), Nio (NIO) and Pay Pal (PYPL).
Late Tuesday, stocks of marijuana Aphria (APHA) and Tilray (TLRY) soared on a report that the two Canadian cannabis producers were discussing a merger that would create the country’s largest cannabis company – but could potentially move its new headquarters to the United States.
Aphria stock jumped more than 7%, while Tilray jumped 23% in extended trade.
Apple, Microsoft and Tesla are stocks in the IBD rankings. Apple was the IBD title for Monday, while AMD was listed in this week’s Stocks Near A Buy Zone column. Nio is a new IBD SwingTrader idea.
Dow Jones Futures Today: a stimulus deal “soon”
Early Wednesday, Dow Jones futures fell 0.1% from fair value, while S&P 500 futures fell slightly. Nasdaq 100 futures contracts increased 0.1% from fair value. Keep in mind that trading futures contracts on Dow Jones and elsewhere doesn’t necessarily translate into actual trading in the next regular trading session.
“We are making significant progress and I am optimistic that we can close a deal soon,” Senate Majority Leader Mitch McConnell told reporters, according to NBC News. His comments came after congressional leaders ended their stimulus talks on Tuesday night.
Among exchange-traded funds, Innovator IBD 50 (FFTY) rose 1.65% on Tuesday. The Invesco QQQ Trust ETF (QQQ) linked to the Nasdaq 100 traded up 1.1%. Meanwhile, the SPDR S&P 500 ETF (SPY) climbed 1.35%.
Amid the coronavirus stock market rally, the high-tech Nasdaq is up 40.4% for the year through Tuesday’s close. The S&P 500 is up 14.4%, while the DJIA is up 5.8% year-to-date, through the December 14 close.
Snapshot of the US Stock Market Today
|Index||symbol||Price||Loss of profit||% Change|
|S&P 500||(0S and P5)||3694,74||+47,25||+1,30|
Last updated: 4:26 PM ET 12/15/2020
According to Worldometer data tracking, the cumulative number of confirmed coronavirus cases in the United States topped 16.9 million on Tuesday. The total number of deaths linked to the virus has exceeded 308,000.
The cumulative total of Covid-19 cases worldwide confirmed since the start of the epidemic topped 73.3 million on Tuesday, with more than 1.63 million deaths linked to the virus.
Coronavirus stock market rally
November was a key month for the stock market, after IBD’s The Big Picture signaled a further uptrend following the market’s bullish monitoring day on November 4. increased its number of distribution days to five.
Monday’s Big Picture commented, “With so many distribution days, you can start to demonstrate that the market trend is turning bearish. But that doesn’t tell the whole story. Equities continue to do well. Of those that have left the bases in recent weeks, almost all remain above buy points. ”
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Dow Jones Stocks: Apple Reaches New Buy Point
Apple broke above another aggressive entry at 125.49. Shares jumped 5% on Tuesday after Nikkei announced that Apple plans to manufacture up to 96 million iPhones in the first half of 2021, a 30% increase year over year. He cited strong demand for Apple’s first 5G smartphones, the iPhone 12 series.
Apple was the IBD title of the day Monday.
The conventional buying point, for now, is 138.08, according to MarketSmith’s chart analysis.
The blue chip giant is the No.1 Dow Jones share for 2020, with a 74.2% lead through Tuesday.
Actions in or near shopping areas: AMD, DraftKings, PayPal
Advanced Micro Devices broke an alternative buy point of 96.47 on Tuesday with a 2.5% lead. The shares are in the 5% buy zone rising to 101.29.
AMD stock broke above a buy point of 88.92 in a double bottom on November 30 and is extended from that entry.
According to IBD Stock Checkup, AMD stock has a perfect composite rating of 99 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.
DraftKings continues to build a cup with handle with a buy point of 53.82. Shares slipped 0.2% on Tuesday and are about 6% of potential entry on Tuesday.
A major flaw is the delayed relative strength of the title. The RS line remains far from its old peaks. Ideally, it should be approaching new highs before a potential breakout.
PayPal is just above its 215.93 buying points in a cup basis, according to analysis of the MarketSmith chart. Shares were up 0.4% on Tuesday and are in the 5% buy range which rises to 226.73.
PayPal ranks # 6 on the IBD 50 and # 3 on the Big Cap 20.
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Tesla’s rival Nio rebounded from its 10-week moving average line – a key support level – with a 6.2% rise on Tuesday. One potential flaw is the lack of strong volume in Tuesday’s lead. The solid rebound from the support area puts the stock in a new buy area.
Nio in a new IBD SwingTrader idea.
Stock de Tesla
The IBD Leaderboard Tesla title fell from early gains to a 1% drop on Tuesday, finishing just past its record highs.
On November 18, the shares broke a buy point of 466 in an awkward cup with a handle and are over 30% of the buy point.
Dow Jones Executives: Microsoft
Among the main stocks of the Dow Jones, the software giant Microsoft fell by less than 0.1% on Tuesday. Stocks are trying to move back above their 50 day line, but find resistance.
Since the start of the year, Microsoft has been one of the top stocks in the Dow Jones, rising 35.8% through the December 15 close.
Stock market rally: what to do next
Investors should continue to use the strength of the stock market to buy breakouts. Be patient and wait for powerful breaks instead of chasing prolonged actions. New buying opportunities present themselves almost every day, like AMD, Apple and Nio. If these new breakouts work, add more exposure. But if the eruptions start to fail, you can back off.
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 against the S&P 500. If the stock is outperforming the market in general, 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 the long-term leaders of IBD, companies with stable earnings growth and price performance. Pleasant (Nice and Intuit (INTU) are the two most recent additions to the list on December 4th.
Nice is finding support around its 10 week moving average and is just above a buy point of 238.45 on a flat basis. A new flat base shows a buy point of 255.58. Meanwhile, Intuit barely extended beyond the 5% buy zone above a 354.08 buy point in a handle mug.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and Dow Jones futures.
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