Another Reason To Buy Netflix; JPMorgan Chase, Bank Of America, Citigroup Trigger New Entries: S&P 500 Futures | Stock News & Stock Market Analysis

Futures for the S&P 500 index edged lower late Tuesday. Netflix (NFLX) made a strong move that gave an additional opportunity to buy the internet TV giant. JPMorgan Chase (JPM), Bank of America (BAC) and Citigroup (C) rallied from a key support level. Fellow financials Charles Schwab (SCHW), E-Trade Financial (ETFC) and Vantiv (VNTV) moved past buy points.

XAutoplay: On | OffNetflix, JPMorgan, Citigroup and Bank of America all rebounded from or through their 50-day moving averages, while Charles Schwab, E-Trade and Vantiv broke out or retook traditional breakout entry points.

The S&P 500 index, Nasdaq composite and Dow industrials all hit record highs as the GOP tax-cut bill cleared the Senate Budget Committee Tuesday afternoon.

S&P 500 index futures fell a fraction vs. fair value. So did Dow futures. Nasdaq 100 futures dipped 0.1%.


Netflix rose 2.1% to 199.18, rebounding off its 50-day moving average in its biggest move in a month. Volume was slightly below average, but also was the strongest in weeks.

Netflix already is in buy range from a 190.05 entry cleared on Oct. 5. Netflix has formed a new flat base, a base-on-base formation, with a 204.48 entry.

JPMorgan, Bank of America, Citigroup

JPMorgan rose 3.5% to 101.36, moving bullishly off its 50-day moving average. Volume ramped up, especially into the close. JPMorgan had been in a buy range from a 95.32 entry but is now extended from that.

Bank of America leapt nearly 4% to 27.64, also rebounding from its 10-week line in strong trade. BofA had been hovering right at the edge of a buy zone from a 25.45 entry.

Citigroup shot up 3.2% to 73.70, moving back above its 50-day line in above-average trade. Citi had been in range from a 69.96 buy point. It’s also in a base-on-base formation with a 76.24 entry.

Federal Reserve chief nominee Jerome Powell, already a central bank governor, indicated support for a December rate hike but said he sees no sign of an overheating economy, largely in line with current Fed chief Janet Yellen’s moderate tightening path. But he also indicated he would take a lighter touch on bank regulation than Yellen. All of that is as expected, but the news seemed to buoy JPMorgan, Bank of America, Citigroup and other banks.

Big bank stocks have struggled to outperform the broader market for extended periods. Pullbacks to the 50-day or 10-week line may offer a safer route than traditional breakouts.

IBD’S TAKE: For more on how the 50-day/10-week moving average can offer follow-on buying opportunities, check out this Investor’s Corner column.

Charles Schwab, E-Trade Financial

Charles Schwab and E-Trade Financial cleared base-on-base formations.

Charles Schwab rose 3% to 47.14, rising above a 46.31 entry as volume turned positive into the close. Schwab had crossed into buy range on Nov. 21 but couldn’t close above that level.

E-Trade climbed 26% to 46.31, breaking out past a 45.80 entry in above-average volume.

Fellow online brokerage TD Ameritrade (AMTD) rose 1.5%, now slightly extended from a late-September breakout.


The payment processor for banks and merchants rose 1.6% to 73.70, clearing a 73.24 flat-base buy point, though the stock was off intraday highs of 76.22. Vantiv briefly crossed that entry on Monday after soon-to-be acquired WorldPay announced earnings results. Back in July, Vantiv agreed to buy U.K.-based WorldPay for $10 billion, beating out JPMorgan.


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Originally posted 2017-11-29 03:56:50.


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