Stock Market Today: Stock Indexes Up, Apple Ushers New Buy Point; Can This Bitcoin ETF Rise To $2,000? | Stock News & Stock Market Analysis

Stocks cooled a bit in afternoon trading but the major indexes held on to moderate gains on Friday. The Nasdaq composite, S&P 500 and Dow Jones industrial average all showed gains of 0.3% to 0.4%, and the latter two look poised to make mild weekly gains.

X The Nasdaq looks set to finish roughly flat for the week. But at 6837 it still boasts a handsome 27% gain year to date. Winners are outstripping losers on both exchanges. Volume is running mildly lower vs. the same time Thursday on both main exchanges.

Meanwhile, leading megacap tech Apple (AAPL) is on course to make a second down week in a row, but the 1% loss is minimal and shares are staying on the north side of the critical 10-week moving average, currently near 166.

A strong rebound off the 10-week line would offer current shareholders a new follow-on entry point.

In follow-on buys, always buy a smaller amount of shares than in a prior buy, such as when a stock is breaking out of a proper base.

In Apple’s case, the iPhone giant lurched out of a new second-stage cup with handle at 160.97 on Oct. 27 in heavy volume. That followed a breakout from a bottoming base in early January at 118.12.

As noted in this prior Stock Market Today column, Apple has proved to be a worthy turnaround play.

Meanwhile, Bitcoin Investment Trust (GBTC) dropped 111.05, or 6%, to 1,708.96, surrendering nearly half of Wednesday and Thursday’s steep advance. Yet the exchange traded fund has had a phenomenal 2017 after breaking out of a base at 139.60 on April 27.

The daily swing from intraday low to high over the past five sessions has ranged from 8% to as much as 41%. Yet it’s remarkable that GBTC is holding nicely above a 10-day moving average, an excellent timing tool for selling a fast-moving stock or ETF. The trust most recently burst past a very deep cup with handle at 985.10 in late November and has gained as much as 93%.

The weekly chart, however, deserves close study too.

Notice how both this week and the past week, GBTC traded in very wide weekly range and is on the verge of making a tight weekly close in enormous turnover. Such action resembles the “railroad tracks” chart pattern, which can signal a top in a highflying stock.

William O’Neil, chairman and founder of IBD, has noted this rare pattern in his best-seller “How to Make Money in Stocks.” Yet for now, a clear break of the short-term 10-day moving average would offer a good exit point for investors.

Elsewhere, major banks continued to thrive in the fourth quarter amid an expanding economy. Bank of America (BAC) rallied 0.6% to 28.95 and has now advanced more than 13% from a 25.45 buy point in a flat base. Shares also held up well in three pullbacks to or near the 50-day moving average since October.

BofA shows a mediocre yet improving Composite Rating of 86 on a scale of 1 to 99, as seen in IBD Stock Checkup. The Accumulation/Distribution Rating is bullish at B+. Prefer those shares within your watch list that have a C grade or higher.

The yield on the benchmark U.S. Treasury 10-year note was back at 2.38% after dipping to as low as 2.33% on Wednesday. The Federal Reserve meets for the last time on interest rates and a quarter-point hike on short-term rates to a 1.25%-1.50% target range is all but assured. A small fraction of the fed funds futures market sees a half-point rise, according to the CME Group’s Fed Watch tool.


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Originally posted 2017-12-09 04:59:31.


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