Dow Jones Futures: Rising Treasury Yields Break Market Rally Support; Nvidia, Teledok, Tesla sell flash signals

Dow Jones futures fell modestly on Friday morning, along with S&P 500 futures and Nasdaq futures. The stock market rebounded sharply on Thursday as 10-year Treasury yields continued to rise. This time the Nasdaq did not close below the key support, did not go down.


Nvidia (NVDA) and Teladok Health (TDOC) Round-tripping in stocks joined with big gains, while Tesla (TSLA) sank further below its 10-week line. Investors should be playing defense, especially in tech stocks. For those waiting to see how many big winners catch up over the weekend, some key sales or holding decisions are coming.

Meanwhile, Game Stop (GME) has come in well on its intraday high. GME stock rose 19% to 108.73 after doubling on Wednesday. But it closed with its intraday high of 184.68. AMC Entertainment (AMC) and Express (XPP), the other two squeeze plays that woke up Thursday morning, have closed. GME stocks rose modestly in active trading on Friday morning.

Key Earnings Reports

Zskeler (ZS), Etsy (ETSY), (CRM), Odes Todesk (ADSK), Farafech (FTCH), RBNB (ABNB) and Dordesh (DSH) made many earnings reports major after the closure.

Etc, Zscaller, Salesforce, Odes Todesk and Farfach topped the earnings scenario. RBNB and Dordesh reported huge quarterly losses in their post-IPO quarterly reports of late 2020, but beat revenue.

ETC stocks jumped in Friday’s premarket, offsetting Thursday’s 5.5% decline. On Thursday, Zacksler stocks regained most of their 5.8% loss. Salesforce stock bounced back overnight on weak guidance after CRM closed up 9.9%. Farafach stock also went down in extended trading, rising 15.15% in Thursday’s slide. ADSK shares fell overnight after a 5% rise.

ABNB stock is at an all-time high after falling 9.1% on Thursday. DASH stock sold after closing with a decline of 5.4%.

Draftkings (DKNG) reports early Friday.

Investors tend to be less forgiving of earnings results in the current market environment even when profits and guidance appear strong. Nvidia stock fell 8.2% on Thursday on earnings. Teladok, Innovative Industrial Industrial Properties (IIPR), Progini (PGNY), Net app (NTAP) and Novocure (NVCR) Everyone suffered a double-digit loss.

Tesla Stock and Nvidia IBD are on the leaderboard. CRM stock IBD is on the long-term leaders. Tesla and Itsi stock are on IBD50.

Dow Jones futures today

Dow Jones futures fell 0.3% against the fair value. S&P 500 futures fell 0.2%. Nasdaq 100 futures are down 0.35%. Futures traded up and down overnight, although the move was not particularly large.

The 10-year Treasury yield fell a few basis points early Friday morning after a spike on Thursday.

Bitcoin traded above 58 46,000 last Sunday, up from 000 58,000 last Sunday and about 52 52,000 on Thursday.

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

Coronavirus cases worldwide have reached 113.64 million. Covid-19 death tops 2.51 million.

U.S. Coronavirus cases have surpassed 29.05 million, with more than 520,000 deaths.

Stock market rally

The stock market boom suffered a broad-based loss on Thursday, with growth continuing to decline.

The stock market traded 1.75% lower on Thursday, a day after the Dow Jones Industrial Average hit a record high. The S&P 500 index dropped 2.45%, but found support on the 50-day line. Nasdaq sank 3.5%%, Nov. Closed below its 0-day line for the first time since. It is still above Tuesday’s intraday low.

The 10-year Treasury yield rose 14 basis points to 1.52%. That rising yield growth is putting pressure on stocks.

Nvidia reported strong earnings and guidance, but sank 8.2% to 532.30. That’s more than a round trip, up 10% from 560.07 by points and is now below the 50-day line. CVO Jane-Hassan “Jensen” Huang told CNBC’s Jim Kramer that he is confident Arm Holdings will take over.

Teledock stock fell 14% to 219.55. Which cleared 30% of the run from 236.76 handle entry and is now down 7.3% from the buy point. TDOC stock is also below its 50-day line.

Among the best ETFs, the Innovator IBD50 ETF (FFTY) fell 4.4%, while the Innovator IBD Breakout Chances ETF (BOUT) sank 5.5%. Eicher Extended Tech-Software Software Sector ETF (IGV) is down 9.9%. Vanek Vectors Semiconductor ETF (SMH) fell 5.6% with Nvidia stock key holding.

Reflecting on more speculative story stocks, Arc Innovation ETF sank 6.4% and Arc Genomics ETF 5.8%. His parent ARK Invest’s largest holding is Tesla Stock, and it made a fuss over the EV maker earlier in the week. TDOC stock is the second top-five holding. And ARK bought several shares of Teladok on Thursday.

With the onset of ARK Investment withdrawals, its daily buying and selling, especially in low-liquid names, can be difficult to get out of.

The ARKK and ARKG fell overnight as Tesla humbly retreated. Teladok, Roku (RQ), Baidu (BIDU) and Square (SQ), the other top five Arc Invest holdings, also retreated on Friday morning.

Market Rally Analysis

Then whether we are in the isolation of the broad market or in the rotation of the sharp sector, growth is about to turn into stocks. The Nasdaq Composite has resisted the 21-day lethal moving average and is now below 50 days. The tech-heavy index is down 5.4% this week, down from 1.6% last week.

Maybe this is the moment when the stock market rebounded. But the current trend is not your friend. Also, even if the market starts to move higher, it does not mean that last year’s speculative growth will continue or move forward. The cyclone and financial years have maintained well this week, and it probably continues to move forward.

The Dow Jones is out just 0.3% for the week, and down only because of the Tech Titans Apple (AAPL) and Micro .ft (MSFT).

Weekly selling signals

Investors should always sell the stock if it falls below 7% -8% of the purchase price, and they should not, like Nvidia and Teladoc, turn a double-digit gain into a loss.

But selling winning shares is both an art and a science. One way to reduce panic sales is to wait until the week before a stock position sells or closes completely. If a stock is decisively below its 10-week line – 2% or more – it could be a sell signal. (Sometimes the stock will have little support areas from the 10-week line, so investors will also wait for that level break.)

But if a stock is critically below such support, do you sell? A lot of it comes at your expense. If you look below 30% it comes down to below 10%, but you can exit when you benefit. If you are still above 100%, you have more leeway. Your conviction is also the key. If you think a stock is likely to gain a lot from the current levels, you can avoid most of this situation. If you do not have this conviction you can cash in your chips.

Tesla stock is down 13% from its 10-week line, falling sharply this week in huge quantities. It will be a sell signal, but not automatic.

If you bought at 466 buy points in November, you’ve seen a 93% increase in half still a 46% increase. You probably don’t want to see that steam evaporate too much. If you buy around 290 or 174, it will also be easier to simplify the holding of the Tesla stock. But it is also understandable to sell your or many Tesla stocks.

Early sales pay off

As the Nasdaq expanded in January and February, IBD suggested selling strongly and cutting exposure to various pullbacks. The goal was to stop some profits and save capital when market conditions and individual stock action became a bit vague.

In a very short period of time, stocks may have been steadily higher. But on Thursday, the Nasdaq closed where it was in January. 13. FFTY ETF is back to where it was in January. 14 while ARKK is at pre-Christmas levels. Most likely, if you took a profit from mid-January to early February, you are in a better position today.

Read the big picture every day to keep up with market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter IBD_ECarson For stock market updates and more.

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