Stock Market Steady; Why It’s Too Early To Buy This Bitcoin Fund | Stock News & Stock Market Analysis

Stocks are trying to rebound after investors backed away from the market on breaking news that a federal grand jury indicted 13 Russian nationals on charges of interfering with the 2016 U.S. elections. The Nasdaq suffered the biggest blow during afternoon trading but edged higher within minutes left in the session.

The premier index of growth companies also still looks poised for a strong weekly advance, up at least 5%, following drops of 3.5% and 5.1% in the prior two weeks.

X On Wednesday, the Nasdaq composite sparked the confirmation of a potential new market uptrend by rising 1.9% in higher volume vs. the prior session. The solid rally came on Day 4 of a new rally attempt after the leading U.S. equities index got trampled by sellers and fell 11.7% from its all-time perch of 7505.

On Friday, the Nasdaq slipped about 0.1% after rising as much as 0.6%.

At 3:45 p.m. ET, the S&P 500 and the Dow Jones industrial average both edged nearly 0.4% higher with roughly an hour to go before the close.

Small caps, which lagged their big-cap brethren in 2017, outperformed on Friday. The Russell 2000 gained nearly 0.6%.

At 1544, the popular small-cap index is now back in the black in 2018, up almost 0.6% year to date.

At least six of the 30 components within the Dow industrials rose 1 point or more, including consumer spending and medical names Walt Disney (DIS), Johnson & Johnson (JNJ) and Home Depot (HD).

Meanwhile, Bitcoin Investment Trust (GBTC) slumped 5% to 17.65, dashing hopes of a possible rebound back above the 50-day moving average this week. But a strong weekly advance suggests that GBTC is beginning to form a new deep base. A rally back above the 50-day line would be bullish, but it would not be a proper buy point yet.

The reason: GBTC had fallen more than 70% from its December peak. A correction that deep often indicates that the potential for new sell-offs is high. When a highflying stock or ETF rebounds in price, it’s vulnerable to the overhead supply of potential sellers who bought on the way down and are looking to cut their losses.

Elsewhere, steel companies, homebuilders, long-term medical care, medical services and pollution control firms paced the upside with gains of 1.5% or more.

Nucor (NUE) has trampolined higher since testing the 60 level on Feb. 5. The return back above the 50-day moving average is also bullish. The U.S. steelmaker rallied more than 5% on Friday to 68.67 in volume running more than 40% above the 50-day average.

Note on an IBD daily chart how it’s easy to see when turnover is higher than normal. Just compare the volume bar for any trading session with the line that goes across the volume bars. That line is the 50-day moving average, which shows the average amount of shares traded per day in the past 50 sessions.

A stock that rises back above the 50-day moving average, or the 10-week line on a weekly chart, in above-normal turnover is flashing bullish action. Why? It indicates that mutual funds, hedge funds, pension plans, corporate treasury divisions, insurers and the like are accumulating shares.

Nucor has experienced stiff upside resistance at the 70 level. The stock has traded between 51 and 68 over the past 14 months. A potential new base could form.

Charlotte, N.C.-based Nucor grew fourth-quarter earnings 91% vs. a year ago to 65 cents a share on a 29% jump in revenue to $5.09 billion.

U.S. Steel (X) retook a 40.06 buy point in a cup with handle that began in February 2017. The handle formed over five trading sessions from Jan. 16 to 22, and a handle must be at least five trading days long.


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Originally posted 2018-02-17 22:17:00.


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