Dow Jones Leads Stock Market Rally; Amazon Stock Set To Trigger Sell

The stock market advanced early Thursday, as it looked to end the holiday-shortened week with modest gains. Despite the market rally, long-time FANG stock leader Amazon (AMZN) was set to trigger a sell signal in the stock market today.

The Nasdaq rose 0.3%, while the S&P 500 and Dow Jones industrial average gained about 0.5% apiece. All three major indexes looked to snap two-day losing streaks.

Early Thursday, FANG stock was once again the target of President Trump’s tweeting. The president said the e-commerce giant pays “little or no taxes to state & local governments” and is putting thousands of retailers out of business. The stock was down over 2% in early trade. Shares are due to close under their 10-week line for the first time since an Oct. 27 breakout above a 1,083.41 buy point. Volume is tracking over 60% above average, which would be a sell signal. The 10-week line is displayed in red on every MarketSmith and IBD weekly chart.

Facebook (FB) triggered that same signal in the week of Feb. 9 when it slid 7.5% in 68% above-average trade amid the stock market’s volatility. Shares of the social media giant are now about 20% off their 52-week high after two weeks of heavy losses.

New issue iQiyi (IQ) — considered the Netflix of China — is due to begin trading today. Late Wednesday, the company priced its IPO at $18. The Chinese company is one of several hyped-up stocks to go public recently. Dropbox (DBX) went public last week, while Leaderboard name PagSeguro Digital (PAGS) IPO’d in late January. The Brazilian payment processor is about 26% above an IPO base’s 30.02 entry.

Top retailer Lululemon (LULU) hit a new high Thursday with a more than 2% advance. The company reported strong earnings and sales results late Tuesday. Lululemon’s relative strength line has surged into new high territory amid the stock’s strong market outperformance.

Inside The IBD 50 Stocks

Among leading growth stocks, a number of names held gains of 1% or higher in early stock market trade, including retail play Five Below (FIVE). The stock is attempting to reclaim a 71.69 cup-with-handle entry, as it advances about 2%. The stock’s RS line is hitting new highs, confirming the strength of the stock’s move.

On the downside, Netflix (NFLX) declined over 2%, as the streaming video giant was set to close below its 50-day line for the first time since a flat-base breakout above a 204.48 entry in early January.


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Originally posted 2019-09-19 23:11:59.


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