Dow Jones futures rose slightly on Friday morning, while S&P 500 futures fell and Nasdaq futures tumbled as Treasury yields rose again. But the Nasdaq futures loss was a loss.
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The stock market was in a strong session on Thursday as the S&P 500 index and Russell 2000 joined the Dow Jones at new high ground. The Nasdaq Composite led with strong gains but the volume was low.
ArcelorMittal Stock and Regal Benoit (RBC) Several “blue dots” were in the breakout on Thursday, while Micro .ft stock, Google Parent Alphabet (Google) and Dinetress (DT) Purchase signals flush.
On Wednesday, the IBD announced that the recovery has resumed as the Dow closes with new closing highs and many real economy stocks erupting. The stock market rally further extended on Thursday. The Nasdaq took a strong step, pulling back some key levels, although it did not qualify as a follow-up day. Growth stocks rallied.
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After closing, Document sign (DOCU) and Reverse Beauty (ULTA) gives headlines to major earnings reports. Shares of DOCU fell early Friday despite strong results and guidance. Alta Stock sank on a weak outlook and CEO’s exit.
Meanwhile, Novav ax x (NVX) recorded an efficacy rate of 46.94% against the original coronavirus strain in the final analysis of a three-phase trial in the UK. NVX stock jumped all night.
Stocks in the buy zone
Global steel giant ArcelorMittal (MT), power generator and motor manufacturer Regal Benoit, contract electronics manufacturer Jabil Circuit (JBL), new shipping IPO Gym Integrated Shipping Services (Zim) and Find the finances (DFS) All erupted on Thursday.
MT stock and all others have lines of relative strength at new highs, reflecting the S&P 500 index in their comparison. RS lines at new heights are especially bullish when they are at the base or break. So Marketsmith has marked such stocks with a blue shade dot at the end of the RS line.
Meanwhile, Dinetress (DT) broke the downtrend, flashing the buy signal. Micro .ft (MSFT) reclaimed the buy point and moved back to some other levels. There were some early buy signals in Google stock.
ArcelorMittal Stock, Regal Benoit, Discover and Google IBD join MicroSoft on the leaderboard. Micro .ft stock IBD is on long term leaders. Google stock is on the IBD50 list. RBC stock was IBD stock The F The Day on Thursday.
Dow Jones futures today
Dow Jones futures rose less than 0.1% from fair value. S&P 500 futures fell 0.5%. The Nasdaq 100 futures fell 1.5% after falling more than 2% at one point overnight.
The 10-year Treasury yield rose 7 basis points to 1.60% early on Friday, close to a 13-month high.
Remember that overnight action in Dow futures and elsewhere does not necessarily translate into real trading in the next regular stock market session.
Join IBD experts as they analyze the additional stocks in the stock market boom on IBD Live.
Corona virus news
Worldwide coronavirus cases reached 119.22 million. Covid-19 death tops 2.64 million.
U.S. Coronavirus cases have surpassed 29.21 million, with over 543,000 deaths.
President J. Biden said late Thursday night that he would not allow the states to By 1 will direct all adults to be eligible for the coronavirus vaccine.
Novavax said its covid vaccine has a 96.4% efficacy rate against the most common strains in a three-phase trial. It was 86% against the UK variable. In a Phase 2B trial in South Africa, the Novavax vaccine had HIV-negative participants, as opposed to a 55.4% efficacy rate, as it has become difficult to differentiate between B1,351 different types of vaccines.
However, the Novavax vaccine was 100% effective in preventing serious illness, including all hospital admissions and deaths.
U.S. NovaX will not seek U.S. approval until data from the trial comes out, but it will likely show strong results as well.
Novavax stock rose 16 percent early Friday morning. NVX stock reached the skies from early January to early February on initial vaccine results, but it gave back almost all of them before the recent surge.
On Thursday, new research showed further evidence that Pfizer (PFE) and Biotech (BNTX) coronavirus vaccine is extremely effective.
Stock market rally
The stock market rallied as record highs led to more indices, more stocks bursting and sales continued to improve. President Biden on Thursday signed into law a બ 91.9 trillion bill.
The Dow Jones Industrial Average rose 0.6% in trading on Thursday. The S&P 500 Index gained 1% and the Small-Cap Russell 2000 strengthened 2.3%, both at record highs. The Nasdaq composite rallied 2.5%, retracing the exponential moving average of 21 days and the 50-day line.
Prior to Thursday’s disclosure, the 10-year Treasury yield had fallen below 1.48% and then rose to around 1.54%. Yields rose 1 basis point to close at 1.53% after a 30-year Treasury auction. Yields fell on Wednesday after a 10-year Treasury auction.
Among the best ETFs, the Innovator IBD E0 ETF (FFTY) has popped 4.5 ..%, while the Innovator IBD Breakout Opportunities ETF (Boot) has popped 75.7575%. Both are moving above their 50-day line. Eicher Extended Tech-Software Software Sector ETF (IGV) rose 1.1%, with MicroSt stock holding the largest. Vanek Vectors Semiconductor ETF (SMH) rose 4.2%.
Reflected in more speculative story stocks, Arc Innovation ETF jumped 6.2% and Arc Genomics ETF 5.6%.
Read the big picture every day to stay in line with market direction and leading stocks and sectors.
Blue Dot Specials
ArcelorMittal stock was at 26.77% from June. %%, breaking the buy point of 25.85 from the cup base in heavy volume since 30 June. The relative strength line for MT stock is at a new high. Which makes Mittal Stock Blue Dot Special.
Regal Benoit rallied from 146.07 buy points above the stock cup base, up 3.6% to 148.82. The volume was the heaviest in years for RBC stock.
Zim Integrated Shipping Stock strengthened 14.5% to 23.35, with a new high and cleared 22.68 by points from the IPO base. Since February 2, the volume was the heaviest, on the fourth day of trading of ZIM stock. Zim IPO 15 went public on the stock and ran quickly before taking a break, strict action for a new issue. Zim is profitable with bullish EPS growth in the latest quarter. It is due to report its first earnings as a public company on March 22.
Discover Financial stock rose 2.7% above 101.79 by points to 102.27. Continuing the trend, DFS was below average for the stock.
Jabil Circuit stock rose 2.75%. Reached 47.711, cleared .27.88 by points from the flat base in the above average trade. It follows strong JBL stock from early November to mid-January. Note that Jabil’s earnings are due next Tuesday, so JBL stock doesn’t get much mattress.
Day Power IBD stock to buy zone amid rapid growth
Tech stocks flashing buy signal
Dinetress stock rose 9.9% to .11.11, breaking the downtrend from its February 9 peak of 56. With the market correction, DT stock fell slightly back to its old base, but found support at its 50-day line and rebounded rapidly. It is better than most development software names. Investors can now take a bit of a position, using a low of .40..46 on Wednesday as a sell signal.
Microsoft stock rose 2% to 237.13, once again accelerating its 232.96 buy point and its 21-day line. MSFT stock is just 2.2% above its 10-week line, offering potential entry as a long-term leader. Micro .ft stock 246.23 could create a new base with a potential entry. Keep in mind that the RS line for MSFT is less than several months. But, it has caught up better than most techniques in the last few weeks.
Google stock rose 3.2% to 2,100.54, rebounding from its 21-day line. Google stocks have a 2,145.24 three-week tight entry. Investors can make an early entry here, Google stock will close earlier than the previous weekly. Also, the RS line is slightly below last week’s record high.
Stock market rally analysis
On Wednesday, the Dow Jones reached a new high. The price of that day and the move of action were strong enough to be a follow-up day, but the IBD decided that the Dow would never count as an improvement. So the direction of the market shifted towards “uptrend resumes” with strong bias towards real economy stocks.
So the question going forward on Thursday was how the divided market will behave. Will the Nasdaq join the uptrend or will it once again pull down the broader market?
On Thursday, the Dow Jones advanced to new highs, while the S&P 500 and Russell 2000 also reached new highs.
Strong rally from Nasdaq joint key levels. But Nasdaq volume declined slightly against Wednesday. So Thursday did not qualify as a follow-through day to confirm the Nasdaq market rally.
Rising Treasury yields have seen pressure on growth stocks and have been a major catalyst for selling in recent weeks. So the length of any market rally, especially growth stocks, is a concern, especially if 10-year Treasury yields move in the 1.4% -1.6% zone from its most recent range.
What investors should do now
Investors should try to add exposure as markets rise. Look for stocks that are breaking or sending other bullish signals. Most of them will be real economy names with the exception of Dynatress, Micro .ft and Google stock.
Most development stocks have significant repair work to do. Yes, if you turn these names from the bottom up and keep going, you will see huge benefits. But if the Nasdaq goes upside down, its sales could be just as dire. The goal is not to buy at the lowest possible price, but at a price where the barriers to your success are high.
Investors will also be able to buy ETFs like SPY or Broad Sector ETFs. More aggressive traders can enter growth ETFs like QQ Q or IGV, SMH or FFTY, so the growth rally can be played with a few individual names in the position.
Don’t be forced to step on the gas, especially in this unusual split market. You can probably save a little powder for growth stocks and when those names become actionable again. Also, if the Nasdaq resumes heavy selling, the broader market will come under pressure.
Let the stock market draw you. If the rally gets steam and more stocks explode, you will gradually increase your exposure.
Please follow Ed Carson on Twitter IBD_ECarson For stock market updates and more.
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