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Dow Jones Futures: Dow Hits High As Tesla Rebounds, GME Stock Skyrockets; Nvidia, Teladoc Lead Earnings Movers

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Dow Jones futures rose slightly Wednesday night, along with S&P 500 futures and Nasdaq futures, after a strong stock market rally Wednesday. The Dow Jones jumped to a new high and the Nasdaq continued to bounce back. Meanwhile, the GameStop (GME) saga is back, with GME stock and other short-squeeze plays skyrocketing Wednesday, with big gains continuing overnight.




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Nvidia (NVDA) headlined earnings reports after the close, along with Teladoc Health (TDOC), NetApp (NTAP), Progyny (PGNY) and Innovative Industrial Properties (IIPR).

Nvidia stock reversed lower overnight despite strong earnings. IIPR stock, Teladoc, NetApp and Progyny declined significantly. All five stocks have been trading near buy points.

Chinese EV startup Li Auto (LI), coronavirus vaccine maker Moderna (MRNA) and new mobile gaming IPO Playtika (PLTK) report early Thursday.

Stock Of The Day Clears Buy Point As EV Plans Accelerate

Stock Market Rebounds

After a brief morning retreat, the stock market rally extended Tuesday’s afternoon rebound, restoring some confidence. The 10-year Treasury yield, which popped to a 52-week high, pulled back, easing pressure on growth stocks.

Tesla jumped 6.2% to 742.02, extending a recovery after a huge intraday drop Tuesday to 619, and fueling support for EV stocks and speculative growth names overall. ARK Invest bought a lot more Tesla stock on Monday and Tuesday, following a number of buys in the past few weeks. TSLA stock, ARK’s top holding across all its ETFs, is still 6.2% below its 10-week line.

But the Dow Jones Industrial Average led the way Wednesday, amid a continued sector rotation into real economy cyclical names such as Boeing (BA).

The Bitcoin price, which plunged below $45,000 Tuesday morning and rebounded to above $51,000 late that night. Bitcoin traded below $51,000 Wednesday night.

IBD Screen Of The Day: 5 Top Growth Stocks Set Up New Buy Point

GME Stock Surges

GME stock, which had drifted lower after a stunning rise and fall, spiked 103% to 91.70 on Wednesday. That pushed GameStop back above its 50-day and 21-day lines to its best close since Feb. 3. GME stock closed 81% off its Jan. 28 peak of 483.

GameStop said Tuesday that CFO Jim Bell has resigned. A resurgent GME stock price could give GameStop another chance for a share offering, something AMC Entertainment (AMC) did last month during its short squeeze.

AMC stock popped 18% on Wednesday. AMC rallied 36% on Monday-Tuesday as New York City said it would allow movie theaters to partially reopen in March. Apparel retailer Express (EXPR) leapt 43%.

GME stock shot up 83% in volatile overnight trade. AMC spiked 22% and Express stock 26%.

Nvidia stock, Tesla and Innovative Industrial Properties are on IBD Leaderboard. Nvidia and Tesla stock are on IBD 50.

Dow Jones Futures Today

Dow Jones futures rose 0.3% vs. fair value. S&P 500 futures climbed 0.25%. Nasdaq 100 futures advanced 0.15%, as Nvidia stock fell and Moderna rallied.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live.

Coronavirus News

Coronavirus cases worldwide reached 113.08 million. Covid-19 deaths topped 2.5 million.

Coronavirus cases in the U.S. have hit 28.97 million, with deaths above 518,000.

Moderna said it will begin clinical trials of its coronavirus vaccine designed to better treat the South African variant of the virus. Current vaccines have shown weaker effectiveness vs. the South African mutation, but they generally prevent death and serious illness.

MRNA stock rose solidly overnight. Shares fell 3.6% to 144.79 on Wednesday, just above its 50-day line. Moderna stock has fallen back from a Feb. 8 record high of 189.26.

Stock Market Rally

The stock market rally shored up support among growth stocks, while real economy names added to momentum.

For a second straight day, the Nasdaq fell solidly in the morning, but Wednesday’s drop was far less than Tuesday’s intraday tumble. This time, the Nasdaq tested its 50-day line rather than plunging below it. Meanwhile, the intraday recovery was faster, with the major indexes soon moving into positive territory.

The Dow Jones Industrial Average led the way, rising 1.35% in Wednesday’s stock market trading to a record high. The S&P 500 index gained 1.1%, just below all-time levels. The Nasdaq composite added 1%, still below its 21-day exponential moving average.

The 10-year Treasury yield, which popped above 1.4% for the first time in a year, pared gains to about 1.38%. Rising Treasury yields have pressured growth stocks in the past few weeks.

Among cyclical stocks, Vulcan Materials (VMC) and Ford Motor (F) cleared short consolidations. GM stock extended a rebound from its 10-week line, retaking its 21-day line. General Motors (GM) execs said the automaker is past the chip shortage that’s affecting the industry, adding that they are “highly confident” of meeting 2021 EPS targets.

Why This IBD Tool Simplifies The Search For Top Stocks

Growth Stocks Generally Higher

Growth stocks were generally higher, but still mixed.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 0.8%, while the Innovator IBD Breakout Opportunities ETF (BOUT) edged down 0.2%. The iShares Expanded Tech-Software Sector ETF (IGV) gained 1%. The VanEck Vectors Semiconductor ETF (SMH) leapt 3.2%. NVDA stock is a big SMH component

Reflecting more-speculative story stocks, Ark Innovation ETF dipped 0.5%, even with top holding Tesla stock rebounding. Ark Genomics ETF edged up 0.2%.

ARK Innovation saw a record withdrawal of $456 million on Monday, following months of huge inflows. ARKG also big withdrawals Monday. While ARK’s biggest holdings are in liquid names like Tesla, Roku (ROKU), Square (SQ), Baidu (BIDU) and Teladoc stock, it holds big stakes in a lot of smaller stocks. Exiting those positions, especially with ARK disclosing daily buys and sells, would be tricky.

ARK didn’t buy more Tesla stock Wednesday, but did acquire 660,000 shares of Workhorse Group (WKHS), which crashed 47% Tuesday and sank 8% Wednesday after the EV delivery vehicle maker lost a big USPS fleet contract.

Key Earnings

Nvidia stock initially rose but then reversed lower, off 2% to 567. Nvidia earnings and sales beat, while guiding higher on current-quarter revenue. On Wednesday, NVDA stock rose 2.5% to 579.96 after again testing the most-actionable entry point of 560.07. The official buy point is 587.76. Investors also could use as 615, just above the Nvidia stock all-time high of Feb. 16, as an entry.

Progyny stock plunged 10% in extended trade. The fertility benefits specialist slightly beat views but guided low on Q1 and full-year revenue. PGNY stock rose 4% to 53.34 on Wednesday, clearing a three-weeks-tight buy point of 51.98.

IIPR stock retreated 5% overnight as the profitable pot REIT missed views. Shares jumped 5.6% to 220.16 on Wednesday, briefly clearing a three-weeks-tight entry of 221.13. IIPR stock tumbled to and rebounded from its 50-day line on Tuesday.

Teladoc stock fell 6% in overnight trade, threatening to test its buy point once again. The telehealth leader reported an in-line adjusted loss but beat on revenue. Shares dipped 0.6% to 254.53, continuing a pullback from a January breakout, closing near the top of the prior base. TDOC stock briefly undercut the 50-day line and 236.76 buy point on Tuesday.

NTAP stock sank 7% in extended trade. NetApp earnings and sales beat but its guidance failed to impress. NTAP stock rose 3.2% to 71.57. Shares have been finding support at key levels this week, just above a buy zone. But NTAP stock threatens to fall below the 66.10 buy point.

Stock Market Rally Analysis

While the stock market is forward looking, Wednesday’s action was important for understanding the Nasdaq’s big Tuesday bounce. At the time it wasn’t clear if Tuesday was just a continuation of a general pullback or the start of the rebound. With Wednesday’s stock market rally gains, Tuesday’s action looks more like the latter. But with the Nasdaq still below its 21-day line, growth stocks may not be free and clear.

Also, NYSE and especially Nasdaq volume were down vs. Tuesday, suggesting a possible lack of conviction. Of course, much of Tuesday’s volume came on the afternoon rebound.

Ideally, the stock market rally would move sideways for a few weeks, letting leading stocks form new bases or find bullish support at 10-week lines. But the market is going to do what it’s going to do. That could mean rangebound trading, or it could mean a quick run to record highs or undercutting Tuesday’s lows.

It’s still not a time to be especially aggressive, in part because few quality stocks are flashing buy signals from proper bases. Investors should be reviewing their portfolio in the wake of recent events and trends. Are you too concentrated in speculative growth names that are prone to wild swings? Do you have any cyclical stocks, capitalizing on that recent trend?

If you do make new position trades, be more selective. Insist on quality companies clearing sound bases.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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Dow Jones Futures: What’s Next For Stock Market Rally After Growth’s’ Wild Ride? Tesla, Square Lead Key Movers Late

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Dow Jones futures fell slightly Tuesday night, along with S&P 500 futures and Nasdaq futures, with Square (SQ) headlining key earnings and Tesla (TSLA) among several EV plays active overnight.




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It was a wild day for the stock market rally, at least for the Nasdaq and especially speculative growth names such as Tesla stock and China EV rival Nio (NIO). The Nasdaq fell more than 3% intraday, but rallied back for a modest loss. The Bitcoin price plunged for a second straight session.

Square earnings topped views, helped by its Bitcoin operations. But net revenue and purchase volume missed estimates. Recent IPOs Upwork (UPWK) and PubMatic (PUBM) also topped views.

Square stock fell 5% late. SQ stock retreated 4.3% Tuesday after rebounding from its 50-day line. Upwork stock skyrocketed 19% and PubMatic jumped 9.5% overnight after both rallied sharply Tuesday from key levels intraday. UPWK rebounded from its 50-day line to finish modestly higher. PUBM closed for modest losses but after plunging below a buy point, making it very hard to hold.

These Stocks Show Strength, Pass Buy Points Amid Market Turbulence

The Nasdaq had looked like it was flashing a vertical violation intraday as it tumbled rapidly through its 50-day line. But the strong rebound to modest losses leaves the market direction unclear. The Dow Jones and S&P 500 erased relatively modest losses to close just above break-even. The stock market rally could simply be in a sector rotation, with rising yields and commodity prices spurring a shift into mining, agricultural and financial stocks.

Dow Jones components Caterpillar (CAT), Disney (DIS) and JPMorgan Chase (JPM) advanced, all extended from recent breakouts. Microsoft (MSFT) edged lower but rebounded from its 10-week line and closed above its 232.96 buy point.

The Bitcoin price fell below $45,000 intraday after topping $58,000 on Sunday. The cryptocurrency recovered to nearly $49,000 overnight. Bitcoin is well above where it was before the market open on Feb. 8, when Tesla disclosed it had bought $1.5 billion worth of the cryptocurrency.

Tesla Rebounds, Workhorse Crashes

Tesla stock fell 2% to 698.84 on Tuesday but after falling as low as 619. Shares are still down nearly 11% so far this week and 11% below its 10-week line. TSLA stock rose modestly overnight as ARK Invest’s Cathie Wood said ARK bought “a lot” on Tuesday. That follows a big Ark buy of Tesla stock on Monday and Wood talking up the company last week.

Tesla is ARK’s biggest holding across its ETFs and in many ways is a marker for the type of speculative growth plays that Cathie Wood focuses on.

Nio stock sank 3.1% to 49.11 after skidding as low as 41.66. Shares tumbled 7.8% on Monday, knifing through its 50-day line. Nio stock edged higher overnight. Nio earnings are due March 1.

But some EV stocks fared far worse. EV delivery van maker Workhorse Group (WKHS) lost a major USPS vehicle contract to Oshkosh Corp. (OSH) WKHS stock cratered 47%, then kept falling sharply overnight. Oshkosh stock rose 6.1% on Tuesday, then jumped in extended trade.

Churchill Capital (CCIV) crashed 38%. Luxury EV startup Lucid Motors confirmed it’ll go public in a SPAC merger with Churchill Capital late Monday. CCIV stock had skyrocketed 468% since Jan. 8, as Lucid SPAC rumors grew. Churchill Capital rose modestly overnight.

Tesla stock is on IBD Leaderboard, but cut from a one-half to a one-quarter position on Tuesday. Microsoft stock is on Leaderboard and IBD Long-Term Leaders. Disney stock and Caterpillar are on SwingTrader.

Dow Jones Futures Today

Dow Jones futures fell 0.2% vs. fair value. S&P 500 futures sank 0.25% and Nasdaq 100 futures retreated 0.35%.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live.

Coronavirus News

Coronavirus cases worldwide reached 112.61 million. Covid-19 deaths topped 2.49 million.

Coronavirus cases in the U.S. have hit 28.88 million, with deaths above 514,000.

Stock Market Rally Tuesday

The stock market rally started Tuesday with the Nasdaq leading sharp losses. But the major indexes pared losses as Fed chief Jerome Powell spoke. Powell said there is a link between Fed liquidity and asset prices. But he once again reaffirmed his commitment to current aggressive monetary policy and stressed that strong job growth is a primary goal. Powell also said the Fed is looking closely at whether to issue a “digital dollar,” but not significant technical and policy issues.

The Dow Jones Industrial Average was a fraction higher in Tuesday’s stock market trading, just below record highs. The S&P 500 index edged up 0.1%. The Nasdaq composite fell 0.5%.

Microsoft stock fell as low as 228.73 intraday, testing the 10-week line but not with wild plunges like many stocks Tuesday, including Square. Shares also never undercut early entries around 227-228. By the close, MSFT stock recovered to a 0.5% loss to 233.27, above the official 232.96 buy point.

Growth stocks generally lost ground, even with big afternoon rebounds.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell 2%, while the Innovator IBD Breakout Opportunities ETF (BOUT) sank 2.1%. The iShares Expanded Tech-Software Sector ETF (IGV) retreated 1.1%, with MSFT stock the top component. The VanEck Vectors Semiconductor ETF (SMH) slid 1%.

Reflecting more-speculative story stocks, Ark Innovative ETF sank 3.3% and Ark Genomics ETF 3.05%.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Stock Market Analysis

The Nasdaq tumbled intraday to just above the Jan. 29 low and the 13,000 level then moved up and down before nearly returning to break-even.

We’ll need to see how the market reacts in the next few days to put Tuesday’s action in perspective.

Perhaps Tuesday marks the start of a recovery for the Nasdaq and big winners such as Tesla and Nio stock. But sometimes a stock market rally will find support, then break it. That’s what happened in the early September sell-off, where the Nasdaq slashed losses on day two of a pullback before plunging on day three to close below its 50-day line.

With the Dow Jones holding up as real economy stocks thrive, in many ways this looks like a sharp sector rotation within a market rally.

What To Do Now

Investors should be somewhat defensive, especially with regards to high-value growth stocks. The Nasdaq has been trending lower over the past several sessions. Meanwhile, many growth stocks have damaged-looking charts after the past couple of days. Even before the recent pullback, there were a lot of good buying opportunities.

One reason to take partial profits when the Nasdaq was extended in late January to early February is to make pullbacks easier to handle. Selling extended stocks into strength can help you hold a core position through pullbacks. If you sold some winners at Tuesday’s lows, those early partial profits at least raised the average selling price.

Don’t let a stock get down more than 7%-8% from your purchase price. Yes, if you had to sell at Tuesday’s lows you might regret that, at least for now, but the point is preserve your capital, not hope for a recovery.

Meanwhile, make sure to keep working on watch lists. The past several sessions have shown the value of diversifying leadership. Holding a few names like Disney would have made the past few days less painful.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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Tesla, Home Depot, AMC and more

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Here are the stocks making the biggest moves in midday trading.

Tesla – Shares of the electric vehicle company slid more than 5% during a volatile day of trading, which at one point saw the stock decline more than 12%. The leg lower follows heavy losses on Monday, and the stock is now down more than 10% for the week as investors rotate out of high-flying tech names.

Home Depot –  The retailer beat top and bottom line estimates during the fourth quarter, but shares were down more than 4% on Tuesday after the company didn’t issue guidance for 2021. Home Depot earned $2.65 per share on $32.26 billion revenue, compared to the expected $2.62 per share and $30.73 billion in revenue, according to estimates from Refinitiv. U.S. same-store sales jumped 25%.

AMC Entertainment – Shares of the movie theater chain jumped more than 10% on Tuesday after New York Gov. Andrew Cuomo announced that movie theaters in New York City could open with limited capacity next month.

Churchill Capital IV – Shares of the special purpose acquisition company tumbled more than 30% after Churchill announced that it would merge with Lucid Motors, an early stage electric vehicle company. A possible deal between the two companies had previously been reported. The companies also confirmed a delay in production for Lucid’s vehicle.

Dish Network – Shares of the television company lost more than 5% after research firm Pivotal downgraded the stock to hold from buy. Pivotal said investors should be patient in waiting to see how Dish’s wireless business performs.

Occidental Petroleum – The energy stock slipped about 2% after Occidental’s fourth-quarter results missed estimates on the top and bottom lines. The company reported a loss of 78 cents per share on $4.16 billion in revenue. Analysts surveyed by Refinitiv were expecting a loss of 59 cents per share on revenue of $4.37 billion.

Shopify – Shares of e-commerce company lost more than 7% after Shopify finalized an offering of Class A shares. The company priced 1.18 million shares at $1,315 apiece, resulting in gross proceeds of $1.55 billion.

Carnival – The cruise stock fell nearly 1% on Tuesday after the company announced a new stock offering. The company is selling roughly 40.5 million shares at $25.10 per share. Carnival said it would use the proceeds for general corporate purposes.

ZoomInfo – Shares of the marketing software company climbed 7% after ZoomInfo’s fourth-quarter earnings beat expectations. The company earned an adjusted 12 cents per share during the period, while analysts surveyed by Refinitiv were expecting 10 cents per share. ZoomInfo’s forward earnings guidance was also stronger than expected.

RealReal – Shares of the luxury consignment platform dropped more than 16% after a wider-than-expected quarterly loss. The RealReal lost an adjusted 49 cents per share for the fourth quarter, versus an estimate of a 42-cent loss. Its revenue also came in below expectations. Raymond James downgraded the stock after the earnings report to market perform from an outperform rating, saying recovery is already priced in.

Spotify – Shares of the music streaming company fell more than 8% after Atlantic Equities downgraded the stock to neutral from overweight on valuation concerns. The firm cited Spotify shares that have more than doubled over the past 12 month, trading at more than five times forward revenue. Meanwhile, it said there are fewer catalysts to drive shares higher as Spotify’s focus shifts away from M&A to production.

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Dow Jones Futures Rise After Tech Stocks Sell Off As Tesla Stock Dives; 3 Earnings Movers Late

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Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were little changed late Monday after tech stocks sold off sharply. Bitcoin tumbled from all-time highs, while Tesla stock dived through a key support level.




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On Monday, the tech-heavy Nasdaq composite sold off 2.5%, its worst day since Jan. 27. The S&P 500 moved down 0.8%, while the Dow Jones Industrial Average traded up 0.1%.

Among the Dow Jones leaders, Apple (AAPL) slid 3%, while Microsoft (MSFT) descended 2.7%. Apple stock fell further below its 10-week line, while Microsoft is testing a recent buy point. Disney (DIS) is back in buy range after Monday’s sharp gain.

Tesla (TSLA) dived 8.55% Monday, breaking down through its 50-day support level.

Late Monday, Cadence Design Systems (CDNS), Palo Alto Networks (PANW) and ZoomInfo (ZI) reported earnings results.

Among top stocks in or near buy zones, hot IPO stock Shoals Technologies (SHLS) is trying to break out past a new buy point, while Trade Desk (TTD) continues to form a new base.

Apple, Microsoft, Tesla and ZoomInfo are IBD Leaderboard stocks. Shoals Technologies was Thursday’s IBD Stock Of The Day. Trade Desk was featured in this week’s Stocks Near A Buy Zone column.

Dow Jones Futures Today

After the stock market close Monday, Dow Jones futures were up 0.1%, while S&P 500 futures and Nasdaq 100 futures rose 0.2% vs. fair value. Remember that trading in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Among exchange traded funds, Innovator IBD 50 (FFTY) tumbled 2.9% Monday. The Nasdaq 100-linked Invesco QQQ Trust ETF (QQQ) traded down 2.6%. Meanwhile, the SPDR S&P 500 ETF (SPY) lost 0.8%.

U.S. Stock Market Today Overview
Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 31523.40 +29.08 +0.09
S&P 500 (0S&P5) 3876.51 -30.20 -0.77
Nasdaq (0NDQC ) 13533.05 -341.41 -2.46
Russell 2000 (IWM) 223.73 -1.46 -0.65
IBD 50 (FFTY) 47.48 -1.42 -2.90
Last Update: 4:28 PM ET 2/22/2021

Stock Market Rally

Looking back at the current uptrend, November was a key month for the stock market. IBD’s The Big Picture flagged the new uptrend following the market’s bullish follow-through day on Nov. 4. Meanwhile, the middle of February has the Dow Jones Industrial Average, Nasdaq and S&P 500 pulling back from record highs.

Friday’s Big Picture commented, “Unable to find direction much of the day, the stock market Friday closed narrowly mixed. But it wasn’t a wasted day for the bulls, because small caps and leading stocks vastly outperformed.”

Focus on stocks that show strong relative strength during the current weakness. They could be some of the market’s leaders if the indexes are able to get back to their record-setting ways.

Stock Market ETF Strategy And How To Invest

Bitcoin Price

The price of Bitcoin topped $57,000 on Saturday and $58,000 on Sunday before briefly diving back below $48,000 Monday morning. Bitcoin rebounded, trading around $54,000 in evening trade, according to CoinDesk.

The Grayscale Bitcoin Trust (GBTC) ETF slid over 4% Monday, falling from record highs.

Dow Jones Stocks: Disney

Dow Jones stock Disney is back in buy range past a 183.50 buy point in a flat base, according to IBD MarketSmith chart analysis. The 5% buy area goes up to 192.68.

Disney stock advanced 4.5% Monday.

Stocks In Or Near Buy Zones: Shoals, Trade Desk

Friday’s IBD Stock Of The Day, Shoals Technologies, is attempting to break out past a 41.86 buy point in a narrow IPO base, according to IBD MarketSmith chart analysis. Shares briefly topped the buy point before reversing over 1% lower. Shares closed about 5% below the entry.

Shoals is an IBD IPO Leader. The firm provides an array of gear needed to operate solar energy systems, according to the Shoals IPO filing. Moreover, it provides the components needed to carry electric currents from solar panels to solar inverters and ultimately to the power grid.

Trade Desk is trading about 13% away from a 972.90 buy point in a cup base amid Monday’s more than 6% fall.

On Friday, the stock jumped nearly 7% in the wake of the company’s strong Q4 results. Earnings and sales grew 149% and 48%, respectively, vs. the year-ago period.

According to IBD Stock Checkup, Trade Desk stock shows a strong 98 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.

Trade Desk ranks No. 10 on the IBD Big Cap 20.

Stock Market Earnings: Cadence, Palo Alto, ZoomInfo

Cadence Design Systems, Palo Alto Networks and IBD Leaderboard stock ZoomInfo reported earnings after the close Monday.

Cadence pulled back to its 50-day line Monday amid a 4.65% fall. After the close Monday, Cadence reported strong Q4 results. The company earned an adjusted 83 cents a share on sales of $760 million in the December quarter. Analysts had predicted Cadence earnings of 74 cents a share on sales of $732 million.

Shares rallied 5% in overnight trade.

Cybersecurity leader Palo Alto Networks reported better-than-expected fiscal Q2 earnings and sales results, but the company’s earnings outlook range fell short of consensus. Palo Alto stock pared losses to about 2% in overnight trade.

Shares closed Monday in the buy range past a 375.10 buy point in a flat base.

ZoomInfo slid 6.25% Monday, closing below a 53.18 entry in a cup base. After the close Monday, ZoomInfo jumped 10% on strong Q4 results and better-than-expected Q1 sales guidance.

According to Leaderboard commentary, “ZoomInfo broke out over a short handle on Feb. 1. But it topped an alternate entry that leaves shares in buy range. The stock is becoming more volatile, a risk.”

IBD Live: A New Tool For Daily Stock Market Analysis

Tesla Stock Breaks Support

IBD Leaderboard stock Tesla dived 8.55% Monday, cracking through its key 50-day moving average. Shares are below the critical support level for the first time since a Nov. 18 breakout above a 466 buy point.

On Sunday, Tesla stopped taking orders for the cheapest version of the Model Y Standard Range sport utility vehicle, just over a month after its launch and barely a week after a price cut, according to its website.

The Jan. 8 IBD Stock Of The Day column signaled that Tesla was flashing several signs of a climax top amid a sharply vertical run in recent months.

On Jan. 25, Tesla stock hit a record high at 900.40. Shares are about 84% above a 466 buy point in a cup with handle amid Monday’s action.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Apple fell 3% Monday, as it dropped further below its 10-week line.

On Thursday, the stock triggered the 7%-8% loss-cutting sell rule when it fell more than 7% below its 138.89 buy point in a cup with handle.

Meanwhile, Microsoft declined 2.7% Monday. Shares of the software giant are in the 5% buy zone from a 232.96 buy point that goes up to 244.61

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones futures.

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Tesla Model Y Standard Range is still available ‘off menu,’ but Elon Musk doesn’t like the range

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Tesla is apparently still offering the Model Y Standard Range, which has been removed from the online configurator this weekend, as an “off-the-menu” item.

The reason behind the removal is apparently that Elon Musk doesn’t like the range of the electric SUV.

As we reported yesterday, Tesla removed the Model Y Standard Range from its online configurator.

The move was confusing since it came just days after reducing the price of the already cheapest version of the Model Y, which itself was released just a month ago.

As usual, Tesla didn’t communicate the change, and we didn’t know if the vehicle was canceled altogether or if the automaker just stopped taking orders for it.

But CEO Elon Musk has now commented on the situation via Twitter, where he said that the vehicle can still be ordered “off the menu,” but he thinks the range is too short:

“It is still available off menu, but I don’t think the range, in many drive conditions, yet meets the Tesla standard of excellence.”

The version of the Model Y was originally announced at the unveiling of the electric SUV in 2019, but Musk said that Tesla won’t produce the Standard Range because he said that the range would be “unacceptably low” at less than 250 miles.

That’s why it was surprising when Tesla launched the vehicle in January with 244 miles of range, but now it looks like Tesla is backing out of the move.

Tesla has been known to have a few “off-the-menu” items that are not listed on its online configurators, but those generally get phased out.

After launching the Model 3 Standard Range at $35,000, Tesla quickly made it off menu, and recently, we reported that Tesla stopped selling the trim with the refresh version of the Model 3.

Electrek’s Take

I mean what is happening? The range is not enough. Meh, let’s launch the vehicle anyway. Oh, you know what, I’m not sure anymore, let’s pull it.

Tesla has always been hard to follow when it comes to pricing and trims, but that’s a whole new level.

Personally, I think 244 miles of range is fine. Plenty of people would be happy with that at $40,000 before incentives, especially in places with mild climates.

In colder climates, it might be worth paying the extra $6,000 to get a bigger battery pack and dual motors.

Generally, I am not a fan of a vehicle having too many trim options, but that’s obviously not the case with Model Y with two “official” options at the moment.

I think it could certainly use a Standard Range option and preferably not off menu.

What do you think? Let us know in the comment section below.

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Tesla scores about $1 billion in profits from Bitcoin: Wedbush’s Dan Ives

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Billionaire Ray Dalio Places Bet on 3 “Strong Buy” Stocks

When billionaire financier Ray Dalio makes a move, Wall Street pays attention. Dalio, who got his start working on the floor of the New York Stock Exchange trading commodity futures, founded the world’s largest hedge fund, Bridgewater Associates, in 1975. With the firm managing about $140 billion in global investments and Dalio’s own net worth coming at $17 billion, he has earned legendary status on Wall Street. Summing up his success, Dalio has three pieces of advice for investors. First, diversify. Keeping a wide range of stocks in the portfolio, from multiple sectors, is the surest way to invest well. Second, don’t think that rising markets will rise forever. This is Dalio’s variation on an old saw that past performance does not guarantee future returns. Dalio will tell you that all strong past returns really guarantee are current high prices. And finally, Dalio tells investors, “Do the opposite of what your instincts are.” Or put another way, don’t follow the herd, as such thinking frequently leads to suboptimal results. Looking to Dalio for investing inspiration, we used TipRanks’ database to find out if three stocks the billionaire recently added to the fund represent compelling plays. According to the platform, the analyst community believes they do, with all of the picks earning “Strong Buy” consensus ratings. Linde PLC (LIN) The first new position is in Linde, the world’s largest industrial gas production company, whether counting by revenues or market share. Linde produces a range of gasses for industrial use, and is the dominant supplier of argon, nitrogen, oxygen, and hydrogen, along with niche gasses like carbon dioxide for the soft drink industry. The company also produces gas storage and transfer equipment, welding equipment, and refrigerants. In short, Linde embodies Dalio’s ‘diversify’ dictum. Linde’s industry leadership and essential products helped the company bounce back from the corona crisis. The company’s revenues slipped in 1H20, but grew in the second half, reaching pre-corona levels in Q3 and exceeding those levels in Q4. In a sign of confidence, the company held its dividend steady through the ‘corona year,’ at 96 cents per common share – and in its recent Q1 declaration, Linde raised the payment to $1.06 per share. This annualizes to $4.24 and gives a yield of 1.7%. The key point here is not the modest yield, but the company’s confidence in the security of its positions, allowing it to keep a steady dividend at a time when many peers are cutting profit sharing. It’s no wonder, then, that an investor like Dalio would take an interest in a company like Linde. The billionaire’s fund snapped up 20,149 shares during the fourth quarter, worth $5.05 million at current prices. Assessing Linde for BMO, analyst John McNulty expresses his confidence in Linde’s current performance. “LIN continues to execute on its growth strategy to drive solid double-digit earnings growth, notably without requiring a further macro improvement. In our view, management’s 11-13% guide for 2021 remains conservative driven by its on coming projects, continued pricing, efficiency gains, and solid buybacks with its strong balance sheet and cash flows. Further, the solid FCF position provides them plenty of dry powder for M&A, de-caps, etc. We believe LIN is poised to continue to surprise investors and outperform the broader group even in a cyclical market. the largest global industrial gas company,” McNulty opined. In line with his bullish comments, McNulty rates LIN as a Buy, and his $320 price target implies an upside of ~28% for the coming year. (To watch McNulty’s track record, click here) Wall Street’s analysts are in broad agreement on the quality of Linde’s stock, as shown by the 15 Buy reviews overbalancing the 3 Holds. This gives the stock its Strong Buy analyst consensus rating. Shares are priced at $250.88, and their $295.73 average price target suggests they have ~18% growth ahead. (See LIN stock analysis on TipRanks) BlackRock (BLK) Next up is the world’s largest asset manager. BlackRock has over $8.67 trillion in assets under management. The company is one of the dominant index funds in the US financial scene, and saw $16.2 billion revenue last year, with a net income of $4.9 billion. BlackRock’s recent Q4 report shows its strength, as far as numbers can. EPS came in at $10.02 per share, a 12% sequential gain and a 20% year-over-year gain. Quarterly revenues of $4.8 billion were up 17% yoy. The full-year top line was up 11% from 2019. BlackRock achieved all of this even as the corona crisis flattened the economy in 1H20. In the first quarter of this year, BlackRock declared its regular quarterly dividend, and raised the payment by 13% to $4.13 per common share. At an annualized payment of $16.52, this gives a yield of 2.3%. The company has kept the dividend reliable for the past 12 years. Not wanting to miss out on a compelling opportunity, Dalio’s fund pulled the trigger on 19,917 shares, giving it a new position in BLK. The value of this new addition? More than $14 million. Covering BLK for Deutsche Bank, analyst Brian Bedell writes, “We view 4Q results as very good with strong long-term net inflows across its products which we expect to continue despite a one-time, $55bn pension fund outflow of low-fee equity index assets expected in 1H21 which mgmt. said would have a minimal impact on base fee revenue. Additionally, total net inflows drove annualized organic base management fee growth of 13%, a quarterly record, on annualized long-term organic AuM growth of 7%. We expect organic base fee growth to exceed organic AuM growth coming into 2021 driven by a flow mix skewed toward higher fee-rate products for now.” To this end, Bedell rates BLK a Buy and his $837 price target suggests the stock has ~18% upside ahead of it. (To watch Bedell’s track record, click here) The analyst consensus tells a very similar story. BLK has received 6 Buy ratings in the last three months, against a single Hold – a clear sign that analysts are impressed with the company’s potential. Shares sell for $710.11, and the average price target of $832.17 gives the stock a 17% upside potential. (See BLK stock analysis on TipRanks) AbbVie, Inc. (ABBV) AbbVie is a major name in the pharma industry. The company is the maker of Humira, an anti-inflammatory used in the treatment of a wide range of chronic illnesses including rheumatoid arthritis, Crohn’s disease, and psoriasis. The company’s other immunology drugs, Skyrizi and Rinvoq, were approved by the FDA in 2019 as treatments for psoriasis and rheumatoid arthritis, respectively, and saw combined sales of $2.3 billion last year. AbbVie expects that these drugs will ‘fill the gap’ in profits when the Humira patents expire in 2023, with up to $15 billion in sales by 2025. Humira is currently the main driver of AbbVie’s immunology portfolio, and provides $19.8 billion of the portfolio’s $22.2 billion in annual revenues, and a significant part of the company’s total sales. For the full year 2020, across all divisions, AbbVie saw $45.8 billion in revenues, with an adjusted diluted EPS of $10.56. In addition to its high-profile anti-inflammatory line, AbbVie also has a ‘stable’ of long-established drugs on the market. As an example, the company owns Depakote, a common anti-seizure medication. AbbVie also maintains an active research pipeline, with scores of drug candidates undergoing studies in the disciplines of immunology, neuroscience, oncology, and virology. For investors, AbbVie has a long-standing commitment to returning profits to shareholders. The company has an 8-year history of keeping a reliable – and growing – dividend. In the most recent declaration, made this month for a payment to go out in May, AbbVie raised the dividend 10% to $1.30 per common share. At $5.20 annualized, this gives a yield of 4.9%. Once again, we are looking at stock that embodies some of Dalio’s advice. Pulling the trigger on ABBV in the fourth quarter, Dalio’s firm purchased 25,294 shares. At current valuation, this is worth $2.66 million. Leerink analyst Geoffrey Porges covers ABBV, and is impressed with the way that the company is preparing in advance for the loss of US exclusivity on its best-selling product. “Between ABBV’s ex-Humira portfolio’s growth trajectory and a broad portfolio of catalysts across early-, mid-, and late-stage assets, it is hard to find a biopharma company that is better positioned, even with their looming LOE. ABBV is prepared for 2023, and has growth drivers to drive better than industry average top- and bottom-line growth in the period before (2021-2022) and after (2024-2028) 2023,” Porges opined. Porges gives ABBV an Outperform (i.e. Buy) rating, and sets a $140 price target that indicates room for a 33% one-year upside. (To watch Porges’ track record, click here) Overall, there are 10 reviews on ABBV shares, and 9 of those are to Buy – a margin that makes the analyst consensus rating a Strong Buy. The stock is trading for $105.01 and has an average price target of $122.60. This suggests an upside of ~17% over the next 12 months. (See ABBV stock analysis on TipRanks) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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Business

Dow Jones Erases Losses, Tech Stocks Dive As Bitcoin Tumbles; Tesla Model Y SR+ Pulled

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The Dow Jones Industrial Average briefly slid more than 200 points Monday before erasing losses, as Bitcoin dived from record highs. Tesla stock tumbled after pulling its Model Y SR+ from its website.




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Among the Dow Jones leaders, Apple (AAPL) moved down 2.7%, while Microsoft (MSFT) declined 3% in today’s stock market. Caterpillar (CAT) is just out of buy range above an entry, while Nike (NKE) is approaching a new buy point.

Tesla (TSLA) skidded nearly 5% Monday, as it breaks down through a key level.

Shoals Technologies (SHLS), Trade Desk (TTD) and Veeva Systems (VEEV) are among the top stocks in or near buy zones in Monday’s stock market action.

Apple, Microsoft and Tesla are IBD Leaderboard stocks. Shoals Technologies was Thursday’s IBD Stock Of The Day.

Dow Jones Today

On Monday, the Dow Jones Industrial Average slashed losses to less than 0.1%, while the S&P 500 moved down 0.6%. The tech-heavy Nasdaq composite sold off 1.7% in midday trade.

U.S. Stock Market Today Overview
Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 31445.78 -48.54 -0.15
S&P 500 (0S&P5) 3878.12 -28.59 -0.73
Nasdaq (0NDQC ) 13611.62 -262.84 -1.89
Russell 2000 (IWM) 224.34 -0.85 -0.38
IBD 50 (FFTY) 47.92 -0.98 -2.00
Last Update: 11:02 AM ET 2/22/2021

Among exchange traded funds, Innovator IBD 50 (FFTY) traded down 1% Monday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) lost 1.1%. Meanwhile, the SPDR S&P 500 ETF (SPY) moved down 0.5%.

Stock Market Rally

Looking back at the current uptrend, November was a key month for the stock market. IBD’s The Big Picture flagged the new uptrend following the market’s bullish follow-through day on Nov. 4. Meanwhile, the middle of February has the Dow Jones Industrial Average, Nasdaq and S&P 500 pulling back from record highs.

Friday’s Big Picture commented, “Unable to find direction much of the day, the stock market Friday closed narrowly mixed. But it wasn’t a wasted day for the bulls, because small caps and leading stocks vastly outperformed.”

Due to the recent strength, investors can remain in an offensive stance, with an understanding that there are still good reasons for caution. Look for stocks that are breaking out above new buy points.

Focus on stocks that showed strong relative strength during the recent weakness. They could be some of the market’s leaders if the indexes are able to continue their record-setting ways.

Stock Market ETF Strategy And How To Invest

Bitcoin Price Tops $58,000 Before Diving

The price of Bitcoin topped $57,000 on Saturday and $58,000 on Sunday before briefly diving back below $48,000 Monday morning. Bitcoin traded about $53,100 in morning trade, according to CoinDesk.

The Grayscale Bitcoin Trust (GBTC) ETF slid 7% and is pulling back after last week’s nearly 16% advance.

Boeing Stock Reverses

Dow Jones giant Boeing (BA) reversed higher Monday after initially falling after one of its Boeing 777-200s made an emergency landing at Denver International Airport Saturday shortly after takeoff due to an engine failure.

Boeing stock is about 36% off its 52-week high, as it builds a base with a new 244.18 buy point.

Dow Jones Stocks: Caterpillar, Nike

Inside the Dow Jones Industrial Average, Caterpillar is exiting a 5% buy range above a 200.27 buy point in a short consolidation. Shares rose 0.5% Monday morning.

CAT shares broke out above the buy point on Feb. 16. The 5% buy zone ended at 210.28.

Elsewhere, Nike is approaching a 148.05 buy point in a flat base. Shares slipped 1.9% in morning trade, as they test their 50-day line.

Stocks To Watch: Shoals, Trade Desk, Veeva

Friday’s IBD Stock Of The Day, Shoals Technologies, is trying to break past a 41.86 buy point in an IPO base, according to IBD MarketSmith chart analysis. Shares briefly topped the entry early Monday before reversing 1.8% lower.

Trade Desk is trading about 9% away from a 972.90 buy point in a cup base. On Friday, the stock jumped nearly 7% in the wake of the company’s strong Q4 results.

Early Monday, Trade Desk slid about 2%.

According to IBD Stock Checkup, Trade Desk stock shows a strong 98 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.

Software leader Veeva Systems is trading below a 314.09 buy point in a cup base. The health sciences software firm fell almost 3% Monday morning.

IBD Live: A New Tool For Daily Stock Market Analysis

Tesla Stock

Tesla stock threatened to extend a losing streak to three sessions Monday, sliding more than 4%. On Sunday, Tesla pulled the Model Y Standard Range Plus from its website.

Shares are breaking down through their 50-day moving average line, a critical support level.

On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Apple moved down 2.7% Monday. Apple stock is below its 10-week line, but a strong rebound back above the level would be bullish for the stock’s prospects.

On Feb. 18, the stock triggered the 7%-8% loss-cutting sell rule when it fell more than 7% below its 138.89 buy point in a cup with handle.

Meanwhile, Microsoft fell 3% Monday morning. The stock remains in the 5% buy zone above a 232.96 buy point that goes up to 244.61.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

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Tesla has made $1 billion profit on its bitcoin investment: Analyst

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Tesla, led by Elon Musk, confirmed that it purchased about $ 1.5 billion in bitcoin in January and expects to start accepting it as a payment in the future.

Artur Widak | NurPhoto | Getty Images

Tesla has made roughly $1 billion in paper profits from its investment into bitcoin, according to Daniel Ives, analyst at Wedbush Securities.

The company is “on a trajectory to make more from its Bitcoin investments than profits from selling its EV (electric vehicle) cars in all of 2020,” Ives estimated in a note published Saturday.

Earlier this month, the U.S. electric carmaker disclosed in a Securities and Exchange Commission filing that it had bought $1.5 billion worth of bitcoin for “more flexibility to further diversify and maximize returns on our cash.”

The purchase was made some time in January, the company said without disclosing when or at what price it bought bitcoin for. It’s unclear if Tesla has sold any of the bitcoin yet.

Bitcoin has seen a huge rally this year, touching fresh record highs regularly. Bitcoin’s market value topped $1 trillion for the first time last week, and the cryptocurrency is up 94% year-to-date.

Ives did not explain how he got to that calculation. But according to CoinDesk data, bitcoin’s price has gone from an intraday high of $34,793.45 on Jan. 31 to an intraday high of $57,487.03 on Feb. 20, the day Ives published his note.

That’s a rise of about 65%, which would put the profit on Tesla’s $1.5 billion bitcoin investment at around $975 million. Based on Monday’s intraday high of $58,332.36, that profit would be over $1 billion.

“While the Bitcoin investment is a side show for Tesla, it’s clearly been a good initial investment and a trend we expect could have a ripple impact for other public companies over the next 12 to 18 months,” Ives said.

Tesla CEO Elon Musk is a proponent of digital currencies. He recently said bitcoin is “is simply a less dumb form of liquidity than cash.”

But he also tweeted on Saturday that the price of bitcoin and another digital currency ethereum do “seem high.”

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Business

Dow Jones Futures: Watch This Market Rally Warning; Bitcoin Soars, Tesla Model Y SR+ Pulled

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Dow Jones futures rose slightly Sunday evening, along with S&P 500 futures and Nasdaq futures, after the stock market rally showed resilience last week. The Bitcoin price hit fresh highs Sunday before paring gains. Tesla (TSLA) pulled the base Model Y SR+ after launching it just last month.




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That raises another wild card for Tesla stock, which continued to test key levels last week.

Solar IPO Shoals Technologies (SHLS), 5G chipmakers Qorvo and MaxLinear (MXL), Dow Jones giant Microsoft (MSFT) are all near buy points, with SHLS stock and Microsoft already actionable and Apple supplier Qorvo (QRVO) arguably so.

The Dow Jones actually edged higher last week while the S&P 500 and S&P 500 fell modestly, rallying off short-term support. Growth stocks, especially more speculative names, suffered significant to sharp losses, though they generally rebounded on Friday. Metals, miners and financial stocks were strong performers.

Still, the recent action highlights the need for proper entries and sound sell rules. The problem with such a strong stock market rally is that it’s a bad teacher. Just like an easy A, everyone enjoys easy money. But if you learn the wrong lessons from the past 10 months, then that easy money will go away quickly.

While the Nasdaq is no longer extended, margin debt and investor exposure overall is a growing concern.

Why This IBD Tool Simplifies The Search For Top Stocks

Tesla stock and Microsoft are on IBD Leaderboard. MSFT stock is on IBD Long-Term Leaders. SHLS stock is IBD Stock Of The Day. MXL stock is the focus of a recent IBD Stock Analysis column.

Dow Jones Futures Today

Dow Jones futures were a fraction above fair value. S&P 500 futures and Nasdaq 100 futures edged higher.

The FAA ordered inspections of Boeing 777 jets after an engine caught fire midflight Saturday, with many parts falling in the Denver area. The Boeing (BA) jet landed safely.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live.

Coronavirus News

Coronavirus cases worldwide reached 111.95 million. Covid-19 deaths topped 2.47 million.

Coronavirus cases in the U.S. have hit 28.76 million, with deaths above 511,000. New coronavirus cases in the U.S. have dropped below 100,000 for eight straight days, while hospitalizations and deaths also tumbling. Vaccinations and, soon, warmer weather should start to have a real impact on slowing transmission.

Stock Market Rally Last Week

The stock market rally had a mixed week, with a mini-rotation from growth stocks into cyclicals and financials.

The Dow Jones Industrial Average edged up 0.1% in last week’s stock market trading. The S&P 500 index dipped 0.7%. The Nasdaq composite retreated 1.6%, but bounced somewhat from its 21-day exponential moving average.

Growth stocks were roughed up in the middle of the week, but Friday gains helped limit losses overall.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) dipped 0.6% last week, thanks to a 2.15% pop on Friday. The Innovator IBD Breakout Opportunities ETF (BOUT) edged down 0.2% last week. The iShares Expanded Tech-Software Sector ETF (IGV) fell 1.4%. Microsoft stock is the top IGV holding. The VanEck Vectors Semiconductor ETF (SMH) lost 0.3%, with QRVO stock a component.

Losses were heavier in more-speculative names. ARK Innovation ETF (ARKK), which owns Tesla stock and many others, slid 2.5%, even with a 2.3% bounce Friday. ARK Genomics Revolution ETF (ARKG) retreated 4.1% last week, with several key holdings taking big hits.

Bitcoin Price Soars

While speculative stocks struggled a bit, Bitcoin remained hot last week, skyrocketing past $50,000, $52,000 and finally $56,000 on Friday. Bitcoin topped $57,000 on Saturday and $58,000 on Sunday before retreating to below $57,000.

With growing mainstream acceptance of the cryptocurrency, Bitcoin has a lot of momentum. Tesla CEO Elon Musk tweeted early Saturday morning that Bitcoin and Ethereum “do seem high lol,” but that follows several positive statements for the cryptocurrency and Tesla buying $1.5 billion worth a a few weeks ago.

While Bitcoin doesn’t have fundamentals per se, investors can still trade it on a technical basis. Bitcoin and Bitcoin-related stocks have been going vertical. A Bitcoin pullback would not be a surprise, even if it’s only temporary.

SHLS Stock

Shoals stock jumped 5.9% last week to 40.17, with nearly all of the gain coming Friday. SHLS stock is now actionable, above an early entry just before 40. The official buy point is 41.86, according to MarketSmith analysis.

The IPO base has a lot of positive qualities. After a brief run-up from the late January IPO debut, SHLS stock corrected just 16%. On Friday, the relative strength line hit a new high with the stock still in the base. That’s especially bullish, giving Shoals stock a blue dot at the end of its RS line on a MarketSmith chart.

Shoals Technologies makes a variety of gear for solar energy systems and components to carry electricity from solar panels to inverters. It’s already profitable, with decent sales growth.

MaxLinear Stock

MaxLinear stock rose 3.3% to 38.33 last week, including a 5.8% jump Friday. That’s just below a 38.81 buy point from a seven-week consolidation. Over the past couple of weeks, up days have come on higher volume than down sessions.

The RS line for MXL stock is near a record high.

The chipmaker delivered huge growth in the latest quarter: Earnings surged 144% on 178% sales growth. 5G businesses are part of the MaxLinear story, but only a portion.

Qorvo Stock

Qorvo stock jumped 4.8% on Friday to 179.39, turning a weekly loss into a 1.9% gain. Friday’s rebound from the 50-day/10-week line also pushed QRVO stock over its 21-day line and up to the edge of a downward-sloping trend line. Investors could buy the Apple iPhone chip supplier here or wait for a little more strength to clear the downtrend.

Qorvo stock is working on a base with a likely 191.93 official buy point. It needs another week for a flat base, though at 15.01% deep it’s a hair too deep to officially qualify. Investors might want to at least start a position off the 10-week line or trend line. QRVO stock has had solid gains over the past few months but has had a tendency to run up and then pull back to the top of the prior consolidation before rebounding again.

While Qorvo stock had a strong week, key customer Apple did not. Apple stock fell 4.1%, finishing 1.9% below its 10-week line.

Microsoft Stock

Microsoft stock fell 1.6% to 240.97. That was just a little too much of a drop to form a three-weeks-tight, though investors could use 246.23 as an add-on entry. MSFT stock is still in range from a 232.96 buy point.

The Dow Jones tech giant has been booming thanks to cloud computing. Microsoft earnings growth has accelerated for the past two quarters. The 17% revenue gain in the last quarter was the best in years.

Tesla Model Y SR+ Pulled

On Sunday, Tesla pulled the Model Y Standard Range Plus from its website. The base Model Y SR+ was launched last month at $41,900. On Thursday, Tesla cut the Model Y SR+ price by $2,000 to $39,900. Tesla on Thursday also cut the prices of its base Model 3 by $1,000 to $36,900, while also raising the price of its Model 3 and Y Performance variants by $1,000.

Also Sunday, Tesla also cut the Long Range (LR) versions of its Model 3 and Y by $1,000, to $45,990 and and $48,990, respectively.

Last year, Elon Musk previously said there would never be a Model Y SR+ because of the low range. The SR+ has an official range of 244 miles, though Tesla vehicles tend to have shorter real-world ranges.

It’s unclear if the move is temporary or permanent, or what the reasons are. There were indicators before the latest price cut that Model Y SR+ demand was lackluster. An industrywide chip shortage could be forcing Tesla to cut production. Hopes that an expected Biden stimulus package will include revived federal tax credits for Tesla and General Motors (GM) could be delaying some purchases.

The Ford Mach-E and the soon-to-launch VW ID.4 are eligible for the current $7,500 tax credit, making those crossovers much cheaper than the Model Y SR+ has been.

Tesla Stock

Tesla stock fell 4.3% last week to 781.30. Shares rebounded from the 50-day line on Wednesday — as Ark Funds’ Cathie Wood expressed growing “confidence” in Tesla stock, saying she was buying more shares. But TSLA stock finished the week slightly below the 10-week line.

Earlier this month, this column reviewed the Tesla stock bull case from a technical standpoint. Those conditions all still remain and in some ways have improved. A TSLA stock rebound from the 50-day/10-week line would offer a buying opportunity, but investors might want to wait to see if TSLA stock can reclaim its now-falling 21-day. As Tesla continues to move sideways, a possible downward-sloping trend line becomes less steep. Also, if Tesla does start to bounce back, it’ll soon have a new base.

But what’s the bear case for Tesla stock from a technical standpoint? Well it has been lagging the market in the past few weeks, which is not a big deal so far. Speculative names are facing some pressure, and TSLA has had a mammoth run. Analyst price targets on Tesla stock make heroic assumptions about the company’s sales, self-driving prospects and much more for the next decade.

TSLA stock is hitting resistance at the 21-day line, at least for now.

Keep in mind that the 50-day/10-week line test is a test. A successful test would offer a new buying chance, but a failure could trigger a sell signal.

If TSLA stock falls decisively through 50-day/10-week line, what’s the next support area? Perhaps 695, the price at which Tesla entered the S&P 500 index. Beyond that you’re looking at top of the prior base at about 500. The 200-day line is now about 450, not far from the November breakout buy point of 466.

All of that would be in character for TSLA stock, especially if the market fell into a correction. In the huge run from late 2019, Tesla stock has had some deep bases.

So if investors do buy Tesla stock at or near these levels, price that off the 10-week line and be ready to sell. A decisive break may be a signal for longer-term investors to take some more profits.

Tesla arguably is the most important stock in the market rally. It’s the ultimate story stock, with a huge market cap. Call options helped fuel its 2020 run. Ark Funds is a major Tesla stock investor and champion. The EV maker has even bought $1.5 billion worth of the power-hungry Bitcoin.

If and when Tesla marks a major top, that could trigger or coincide with a big stock market top.

Stock Market Analysis

Last week the Nasdaq had a tame pullback, finding support where you’d expect at the 21-day line. Is the pullback or rotation out of speculative growth over? Friday’s lackluster action, with the Nasdaq closing near session lows, wasn’t inspiring.

If the stock market rally rebounds quickly, how much is there to run? The Nasdaq closed Friday 5.1% above its 50-day line. That’s not extended, but not far from being so once again.

Meanwhile, other indicators continue flash warning signs. Margin debt surged 42% in January vs. a year earlier. That’s the most since late 2007, though still below the 55% annual gain associated with major market tops. However, the rise of leveraged ETFs and skyrocketing use of call options suggest that investor leverage is significantly higher than margin debt alone. Also, margin debt year-over-year comparisons will get easier in February and March, as investors exited during the coronavirus crash.

All of that investor leverage, fueled by Fed policy, stimulus checks and millions of Americans stuck at home in a zero-fee trading era, have helped drive the enormous stock market rally. But if the market has a significant correction, that can spur an big drop in leverage, spurring further selling.

Right now, the stock market rally still looks strong. And over the past 10 months, pullbacks have generally been shallow and short lived. Even the two-month correction last fall was relatively modest for a correction. But at some point the stock market rally will turn into a major correction or bear market. Enjoy this stock market rally, but stay disciplined and prepared for a change in character.

What To Do Now

Great stock market rallies make bad teachers. But at this stage of the rally, investors should follow the rules and do their homework.

Check your individual holdings and overall exposure. Have a game plan for your stocks and stress test your portfolio.

It’s a good idea to check out or rewatch Wednesday’s IBD Live show featuring David Ryan. Ryan stressed the importance of sound bases and the need for sell rules. Ryan also noted the strength in many cyclical stocks and financials.

CAN SLIM investors should focus on leading stocks but it’s a good idea to have a diversity of leadership. Many mining, agricultural and bank stocks have been strong performers in recent months. Having some of those names can help avoid major drawdowns in your portfolio. Having even pilot positions in a variety of top groups will help you stay aware of strength in those areas. That could lead to further buys in those fields, especially if frothy areas of the market face more trouble.

All of this means being prudent and cautiously bullish, not bearish. It is still a strong stock market rally. There are good reasons to be significantly invested.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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Tesla Billionaire Elon Musk Made A Stark Bitcoin And Ethereum Price Warning As Crypto Market Nears $2 Trillion

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Telsa billionaire Elon Musk, whose tweets about the meme-based cryptocurrency dogecoin helped push it to a $10 billion valuation, has warned the price of bitcoin and ethereum “seem high.”

The bitcoin price has surged by almost 500% over the last 12 months, partly due to Musk’s pro-bitcoin and cryptocurrency tweets and his electric car company Tesla adding bitcoin to its balance sheet—following in the footsteps of U.S. software company MicroStrategy

MSTR
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MORE FROM FORBESExclusive: YouTube Stars Jake Paul And Ben Phillips ‘Discussed’ Creating A Cryptocurrency As Bitcoin And Dogecoin Mania SpreadsBy Billy Bambrough

The bitcoin price climbed to $57,000 this week, giving it a total value of over $1 trillion, while ethereum, the second-largest cryptocurrency, broke $2,000 per ether token for the first time—giving it a total value of $226 billion.

Musk made the bitcoin and ethereum price warning during a discussion on Twitter about the nature of money. Replying to gold investor and bitcoin skeptic Peter Schiff, Musk said: “Money is just data that allows us to avoid the inconvenience of barter. That data, like all data, is subject to latency and error. The system will evolve to that which minimizes both. That said, bitcoin and ethereum do seem high.”

Earlier this week, Musk sought to distance himself from Tesla’s $1.5 billion bitcoin-buy, which pushed the price of bitcoin sharply higher when it was revealed.

“Tesla’s action is not directly reflective of my opinion,” Musk said via Twitter in response to a Bloomberg interview with the chief executive of bitcoin and cryptocurrency exchange Binance.

“Having some bitcoin, which is simply a less dumb form of liquidity than cash, is adventurous enough for an S&P 500 company … When fiat currency has negative real interest, only a fool wouldn’t look elsewhere. Bitcoin is almost as bs as fiat money. The key word is ‘almost.'”

Bitcoin’s mega 2021 rally has seen its price almost double since the beginning of the year thanks to a combination of Wall Street institutional adoption, corporate interest, and retail traders piling into the market.

“There are a number of reasons why bitcoin is soaring, but what stands out most is the trend that MicroStrategy started and Tesla popularised: moving institutional balance sheets into bitcoin to hedge against inflation,” Nicholas Pelecanos, head of trading at blockchain network NEM, said in emailed comments.

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Ethereum, meanwhile, has benefitted from the rise of decentralized finance (DeFi)—using cryptocurrency technology to recreate traditional financial instruments such as interest, known as “yield,” and insurance. Many of the biggest DeFi projects are built on top of ethereum’s blockchain, pushing the ethereum price higher as users flood the network.

“We’ve reached an inflection point where people are questioning traditional monetary systems and recognising that there are better, fairer options,” Jai Bifulco, chief commercial officer at blockchain-based precious metals exchange Kinesis, said in emailed comments.

The broad bitcoin and cryptocurrency market, made up of thousands of digital tokens, is now worth a staggering $1.7 trillion—up from $800 billion at the beginning of January.



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