Dow Jones futures fell slightly on Tuesday night, along with S&P 500 futures and Nasdaq futures. Square (SQ) Main Earnings and Tesla (TSLA) remains active overnight among many EVs.
It was a wild day for the stock market boom, at least speculative growth names like Nasdaq and especially Tesla stocks and China EV rivals Neo (NIO) The Nasdaq fell more than 3% intraday, but bounced back to modest losses. Bitcoin prices plunged into another straight session.
Square earnings peaked, helped by its bitcoin operations. But missed estimates of net income and purchase volume. Recent IPO Upwork (UPWK) and Pubmatic (PUBM) are also viewed at the top.
Square stock fell 5% late. SQ stock rebounded 3.3% on Tuesday after rebounding from its 0-day line. The up-stock plunged 19% and the puberty jumped 10% overnight, after which both rallied sharply from key levels intraday on Tuesday. UPWK turned back from its 0-day line to finish at a modestly higher level. The PUBM was closed for moderate damage but after diving below the buy point, it is very difficult to catch.
Strength, pass by points are shown in these stocks amid market turmoil
The Nasdaq seemed to shine in its 50th breach intraday as it quickly moved away from its 50-day line. But a strong rebound of modest losses leaves the market direction unclear. The Dow Jones and S&P 500 closed relatively above the break-even, causing relatively modest losses. The rally in the stock market can only be in the circulation of the sector, with rising yields and commodity prices in mining, agriculture and financial stocks changing.
Dow Jones components Caterpillar (CAT), Disney (DIS) and JP Morgan Chase (JPM) Advanced, extended from all recent breakouts. Micro .ft (MSFT) is low-edged but bounces off its 10-week line and closes above its 232.96 by-point.
The price of Bitcoin went down to 45,000 intraday after hitting 58,000 on Sunday. Cryptocurrency reached over $ 47,000 in active trading overnight. Bitcoin is exactly where it was before the market opened on February 8, when Tesla announced it had bought $ 1.5 billion worth of cryptocurrency.
Tesla rebounds, workhorse crashes
Tesla stock fell 2% to 698.84 on Tuesday but after falling below 619. The stock is down about 11% so far this week and 11% below its 10-week line. TRL stock rose modestly overnight as ARK Invest’s Kathy Wood said ARK bought “a lot” on Tuesday. He buys a large arc of Tesla stock on Monday and will speak at the Wood Company last week.
Tesla ARK has the largest holding in its ETF and in many ways is a marker for the speculative growth drama that Katie Wood focuses on.
Neo stock fell 3.1% to 49.11 after hitting a low of 41.66. Shares fell 7.8% on Monday from its 50-day line. Neo stock remained higher overnight. Neo earnings are due from March 1.
But some EV stocks have had worse results. EV Delivery Van Manufacturer Workhorse group (WKHS) lost a major USPS vehicle contract Oshkosh Corp. (OSH). WKHS stock is down 47%, then falling sharply overnight. Oshkosh stock rose 6.1% on Tuesday, then jumped into extended trading.
Churchill Capital (CCIV) has crashed 38%. Luxury EV startup Lucid Motors has confirmed that it will go public in a SPAC merger with Churchill Capital late Monday evening. CCIV stock had a skyrocketing 468% since Jan. 8, as Lucid SPAC rumors continued to grow. Churchill Capital rises higher overnight.
Yet another EV startup, Hillian Holdings (HYLN), increased slightly overnight after reporting damage to Q4.
Tesla stock is on the IBD leaderboard, but will be placed in a quarterly position on Tuesday. Micro .ft stock leaderboard and IBD are on the long-term leaders. Disney stock and Caterpillar are on SwingTrader.
Dow Jones futures today
Dow Jones futures were below fair value. S&P 500 futures are lower and Nasdaq 100 futures are down 0.1%.
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 have reached 112.62 million. The death of the Covid-19 peaked at 2.49 million.
U.S. There have been 2.8 million cases of coronavirus in India, in which more than 14,000 people have died.
Stock market rally on Tuesday
The stock market’s rally was hit hard by the Nasdaq on Tuesday. But with Fed chief Jerome Powell speaking, key indicators turned bearish. Powell said there is a link between Fed liquidity and asset prices. But he reaffirmed his commitment to the current aggressive monetary policy and stressed that strong job growth is the primary goal. Powell also said the Fed is looking into whether to issue a “digital dollar”, but not important technical and policy issues.
The Dow Jones Industrial Average was a fraction of higher in Tuesday’s stock market trading, below a record high. The S&P 500 index rose 0.1%. The Nasdaq composite fell 0.5%.
Micro .ft stock went down as low as 228.73 intraday, testing the 10 week line but not with a wild plunge like many stocks on Tuesday, including Square. Shares around 227-228 never depreciate early entries. Nearby, MSFT stock bounced back to 233.27, down 0.5%, above the official 232.96 by point.
Growth stocks usually lose ground even with a big afternoon rally.
Among the best ETFs, the Innovator IBD50 ETF (FFTY) fell 2%, while the Innovator IBD Breakout Chances ETF (BOUT) sank 2.1%. Eichers Extended Tech-Software Software Sector ETF (IGV) retreated 1.1%, with MSFT stock being the top component. Vanek Vectors Semiconductor ETF (SMH) decreased 1%.
More reflective than speculative story stocks, Arc Innovative ETF sank 3.3% and Arc Genomics ETF sank 3.05%.
Stock market analysis
The Nasdaq intraday tumbled to its lowest level since Jan. 29 and moved up and down before returning to a break-even after a 13,000 level.
To keep Tuesday’s action in perspective, one will need to see how the market reacts in the next few days.
Perhaps Tuesday marks the beginning of a recovery for the big winners like Nasdaq and Tesla and Neo Stock. But sometimes the stock market will support the boom, then break it. The same thing happened with the sell-off in early September, where Nasdaq reduced losses on the second day of the pullback before diving below its 0-day line for three days.
As real economy stocks grow with the Dow Jones, in many ways this market boom seems like a sharp sector rotation.
For now, this is a stock market confirmation rally. This is a good day to read the Big Picture to stay consistent with the market direction and leading stocks and sectors.
What to do now
Investors should be somewhat protective, especially when it comes to low-value growth stocks. The Nasdaq has been on a downward trend for the last several sessions. Meanwhile, loss charts have been hurt in many growth stocks over the past few days. Even before the recent pullback, there weren’t many good buying opportunities.
One of the reasons for taking partial profits when Nasdaq was raised by Facebook in early January is to make it easier to handle pullbacks. The sale of expanded stocks in Shakti can help you achieve a leading position through pullbacks. If you sold some of the winners at the bottom of Tuesday, it was an increase in at least the average selling price in the initial partial profit.
Don’t let your stock fall below 7% -8% of your purchase price. Yes, you can repent if you had to sell at a lower price on Tuesday, at least for now, but the issue will keep your capital, not the hope of recovery.
In the meantime, be sure to continue working on watchlists. Many previous sessions have demonstrated the value of diverse leadership. Having a few names like Disney would have made the last few days less painful.
Please follow Ed Carson on Twitter IBD_ECarson For stock market updates and more.
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