Connect with us

Business

Why is this market grouping so dangerous? Tesla Nears bear lows in this move

Published

on

Dow futures fell slightly in extended trading, along with S&P 500 futures and Nasdaq futures. The stock market rally saw a flat to lower trading session on Wednesday.




X



The Nasdaq led the declines apple (AAPL), a parent from Google the alphabet (The Google) And Tesla stock extended to big weekly losses. Apple and Google stock broke below some support levels during this Tesla (TSLA) is approaching the lows of a bear market.

Advertisement

The sideways action over the last several weeks has been difficult to buy aggressively. Volatile markets cut off investors. It’s not the time to add exposure.

Late Wednesday, the Pentagon said so Amazon.com (AMZN), The Google, Microsoft (MSFT) And the inspiration (ORCL) won cloud computing contracts that could be worth up to $9 billion each through 2028. In 2019, the Department of Defense was awarded a $10 billion cloud computing contract, but canceled that deal in 2021 amid Amazon’s objections.

The four tech giants are little changed in after-hours trading.

Dow jones futures today

Dow futures fell 0.2% against fair value. S&P 500 futures fell 0.3% and Nasdaq 100 futures fell 0.4%.

The 10-year Treasury yield rose 4 basis points, to 3.45%.

Advertisement

Crude oil futures rose slightly.

Remember to work in overnight Dow Jones futures contracts and elsewhere that does not necessarily translate into actual trading in the next regular session Stock market session.


Join IBD experts as they analyze actionable shares in the bullish stock market on IBD Live


Stock market rise

The stock market traded slightly lower for most of the Wednesday session, closing generally in the red.

The Dow Jones Industrial Average rose less than 2 points on Wednesday Stock market trading. The S&P 500 fell 0.2%. The Nasdaq Composite Index fell 0.5 percent. Small cap Russell 2000 fell 0.3%.

Advertisement

US crude oil prices fell 3% to $72.01 a barrel, continuing to fall on global demand concerns. Gasoline futures fell 3.4% to a one-year low. Natural gas prices rose 4.6% after a sharp drop in five sessions.

The 10-year Treasury yield fell 10 basis points to 3.41%, hitting a nearly three-month low.

The inverse relationship between stocks and bond yields is diminishing because Treasury yields are now falling further as recession fears ease inflation pressures. And the tamed CPI report for November on December 13th will still be welcome. While a half-point rate hike looks very likely on December 14, progress on inflation should raise hopes of smaller increases in early 2023 and an early end to tightening. This would reduce the risk of a recession, or at least a hard landing.

Exchange Traded Funds

Among the growth ETFs is iShares Expanding Technology and Software Sector Fund (IGV) fell 0.5%. VanEck Vectors Semiconductor Corporation (SMH) is closed directly below the break-even point. Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark(down 0.8% and the ARK Genomics ETF)ARKG) increased by 0.3%. TSLA stock is a major holding via Ark Invest’s ETF.

SPDR S&P Metals & Mining ETFs (XME(down 0.3% and the Global Infrastructure Development Fund (ETF) in the USA)cradle) lost a small part. US Global Gates Foundation ETF (Planes) decreased by 3.3%. SPDR S&P Homebuilders ETF (XHB) increased by 1.8%. Energy Defined Fund SPDR ETF (xle(Down 0.2% and Financial Select SPDR ETF)XLF) decreased by 0.4%. SPDR Health Care Sector Selection Fund (XLV) increased by 0.8%.

Advertisement

Top five Chinese stocks to watch now


Apple Stock and Google Stock

Apple stock fell 1.4% on Wednesday to 140.94, marking its lowest level since Nov. 10. So far this week, AAPL stock is down 4.65%, crossing the 50-day line. The tech giant is approaching the Dow Jones low of October 13 at 134.37 but is still far from the bear market low of 129.04 set on June 16.

Google shares fell 2.1% to 94.94, below the 50-day line. GOOGL stock is down 5.4% so far this week, erasing gains from the previous three weeks. Shares are still comfortably above their November 3 bear market lows of 83.34.

Tesla stock

Tesla stock fell 3.2% to 174.04 Wednesday, closing at a bear market low of 166.19 set on November 22. TSLA stock is down 10.7% so far this week.

On Wednesday, Tesla cut China prices by 6,000 yuan for cars in stock. Besides insurance subsidies, free fees, and other goodies, Tesla is offering more than 21,000 yuan in incentives for cars in the lot. This follows price cuts in late October in China. It comes before government subsidies for electric cars expire on December 31, which should drive demand forward. This also comes amid widespread reports – denied by Tesla – of looming production cuts in Shanghai.

Advertisement

Meanwhile, Tesla will reportedly reintroduce radar in its cars in early 2023. Elon Musk has pulled radar in 2021, saying only vision was better for self-driving, unlike nearly all others working on self-driving.


Tesla vs. BYD: Which EV giant is the best to buy?


Market rally analysis

The stock market rally continued its decline, although the technical picture did not change significantly.

The Nasdaq tested the 50-day line, the day after it fell below the 21-day moving average. Apple, Google and Tesla stocks affected the indexes of major companies, but the underlying trend was also slightly lower.

Major indices have generally headed higher from their October 13 lows, especially the Dow Jones and the S&P 500. The market rally seemed to have gained momentum late last week, with the S&P 500 above its 200-day line and the Dow Jones reaching higher level in seven months.

Advertisement

But with the recent decline, the leading indices and the Russell 2000 are basically where they were in early November or late October.

Sideways markets are among the most dangerous for investors, especially when there is both up and down volatility. There is enough strength on the upside to attract buyers, but then the market swings lower for quite some time. This forces investors to either cut their losses when they are small – with a good chance that stocks will rebound – or risk a much larger decline.

The current volatile market rally has an additional hurdle. Most of the progress has come in just a few sessions of a day, so it’s hard to have even small upsides to build gains on new positions.


It’s time to market with IBD’s ETF Market Strategy


What are you doing now

The stock market rally has hit resistance and is testing some key levels, but is not seriously damaged yet. If you have a modest exposure with positions that work, you don’t need to go out. Taking partial profits is not a bad idea in this market of course.

Advertisement

But there is a strong chance that anyone who has been buying stocks over the past several weeks when they break out or get early buy signals is falling into those holdings. In a sideways, choppy market, when stocks start to look interesting, they may be about to peak.

Investors should beware of increasing exposure until the market can clear its recent trading range, with the S&P 500 decisively above its 200-day line. That may not happen until after next week’s CPI inflation report and the Fed meeting.

Even then, investors should slowly increase positions, in case the major indexes fall again after reaching short-term peaks.

But keep working on those watchlists. Industrial plays and infrastructure looks good, along with a variety of medicines. Some brokerages hover around buy points. The chip equipment names show relative strength, with a number of semiconductor plays holding up quite well.

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

Advertisement

Please follow Ed Carson on Twitter at @tweet For stock market updates and more.

You may also like:

Why simplify this IBD tool burntthe classroom for top stock

Catch the next winning stocks with MarketSmith

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

Advertisement

Best growth stocks to buy and monitor

IBD Digital: Unlock IBD blue-chip stock listings, tools and analytics today



Source link

Advertisement
Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published.

Business

MicroStrategy is at its lowest level since 2020 after the sales were revealed

Published

on

By

(Bloomberg) — Shares of MicroStrategy touched their lowest level since August 2020 after the enterprise software company, which in recent years has been known as the largest buyer of bitcoin, revealed its first sale of the token.

Most Read from Bloomberg

The stock fell 1.1 percent to $136.63 on Thursday, down 75 percent this year. Bitcoin rose less than 1% to around $16,590 and is believed to have fallen 64% since the start of the year.

Advertisement

In a filing on Wednesday, MicroStrategy said it acquired approximately 2,395 Bitcoin between the beginning of November and December 21 through its subsidiary MacroStrategy, and paid out approximately $42.8 million in cash. It then sold 704 of the tokens on Dec. 22 for a total of about $11.8 million, citing tax purposes, before buying another 810 of them two days later.

Matt Malley, chief market strategist for Miller Tabak + Co. Step down as CEO. This news means they don’t seem to want to do that anytime soon.”

Overall, MicroStrategy held about 132,500 bitcoins worth over $4 billion USD as of December 27th. The company paid an average purchase price of $30,397 per bitcoin.

“Given MicroStrategy’s $2.4 billion in leverage, we believe the company may have a lot of leverage over Bitcoin, and may face some liquidity risk,” Jefferies analyst Brent Thiel wrote in a note on Wednesday. Thill has an “underperform” rating on the stock and a price target of $110.

Over the years of the pandemic, MicroStrategy has become well known for its Bitcoin takeovers, largely led by Saylor. Earlier this year, Saylor stepped down from that role and now serves as CEO at the company and continues to lead its bitcoin strategy.

Advertisement

MicroStrategy was trading around $120 before Saylor first announced the company’s Bitcoin purchases in 2020. The stock reached an all-time high of $1,315 in February 2021.

(Updates to include the stock’s closing price in the second paragraph.)

Most Read by Bloomberg Businessweek

© Bloomberg LP 2022

Advertisement

Source link

Continue Reading

Business

Bankman-Fried May File Petition in New York Federal Court Next Week Before Judge Louis Kaplan By Cointelegraph

Published

on

By



Former FTX CEO Sam Bankman-Fried is set to appear in court on the afternoon of January 3 to enter a lawsuit over two counts of wire fraud and six counts of conspiracy against him related to the collapse of cryptocurrency exchange FTX, according to Reuters. mentioned on December 28, citing court records. Bankman-Fried will appear before District Judge Lewis Kaplan in Manhattan.

Judge Kaplan was appointed to hear the case on December 27 after the original judge in the case, Ronnie Abrams, Resigned herself because of connections between FTX and the law firm Davis Polk & Wardwell, where her husband is a partner. The company provided advisory services to FTX in 2021.