The stock market rally again suffered sharp losses for growth stocks but came off lows. With the market looking shaky, investors should stress test their portfolios.
Roku earnings were a surprise, while Trade Desk and Applied Materials also beat views. Roku stock was little changed and Trade Desk fell slightly while AMAT stock popped overnight, near record highs.
GameStop Stock Frenzy Hearing
A congressional hearing on the GameStop stock frenzy took place Thursday. Aside from the spectacle of watching aging politicians ask questions about social media-fueled short-squeeze mania, the GameStop hearing seemed like old news.
GME stock fell 11% to 40.69. That’s now 92% below its Jan. 28 peak of 383. Trading volume has plunged, especially daily dollar volume, as Reddit traders look to the next meme stock. The rise of GME stock was amazing while its fall was inevitable.
Recent Breakouts Struggle
While the stock market rally is resisting a significant retreat for now, investors may want to be more defensive. One reason is that many recent buying opportunities aren’t working, including Apple (AAPL), Nio (NIO), Datadog (DDOG) and Palantir Technologies (PLTR).
Apple stock has fallen more than 7%-8% from its 138.89 buy point, while also breaking below its 50-day and 10-week lines. Datadog stock also triggered sell signals, despite Thursday’s gain. Nio stock is down more than 7%-8% from a base buy point or a later entry from breaking a downtrend. Palantir stock, which twice rallied significantly past a consolidation buy point, has plunged 34% over the past six sessions.
Some recent breakouts have succeeded, including Microsoft (MSFT), Google parent Alphabet (GOOGL), Nvidia (NVDA), ZoomInfo Technologies (ZI) and Wells Fargo (WFC), but they’re generally holding up rather than powering higher. The risk-reward for new buys has been rather poor overall.
Apple, Microsoft, Nvidia, ZoomInfo and Wells Fargo stock are on IBD Leaderboard. Microsoft stock is on IBD Long-Term Leaders. Nvidia and Google stock are on SwingTrader. Google, Nvidia, Trade Desk and AMAT stock are on the IBD 50.
Dow Jones Futures Today
Dow Jones futures were 0.35% below fair value. S&P 500 futures fell 0.4% and Nasdaq 100 futures sank 0.5%.
Treasury Secretary Janet Yellen late Thursday again made the case for the Biden stimulus plan.
Coronavirus cases worldwide reached 110.83 million. Covid-19 deaths…
Go to the news source: Dow Jones Futures: Stress Test Your Portfolio; Apple, Nio Flash Sell Signals; Ro…