Dow Jones Futures Fall Sharp; Apple Stock, Boeing Stock, Visa Stock, Tesla Stock Analysis
Dow Jones futures fell sharply Sunday, along with S & P 500 futures and Nasdaq futures, which indicates that the high average will move towards the latest stock market corrections on Monday. Last week, the Dow Jones, S & P 500 Index and Nasdaq Composite lost at least 4.5%, and put the stock market rally under strong pressure. The relative strength line helps identify stock market managers and laggards. It is a useful investment to see lists. Tesla stock has an RS line that hits heights as it tries to break out. But do not just buy on the RS line, like Apple Store, Boeing Warehouse and Visa Store. Apple (AAPL), Boeing (BA) and View (V) are all Dow Jones shares.
Dow Jones Futures Today
Dow Jones futures fell 0.9% against fair value. The S & P 500 futures fell 0.8%. Nasdaq 1[ads1]00 futures lost almost 0.8%.
Dow futures, Tesla shares and other takeover do not necessarily imply actual trading in the next regular session. Future prospects suggest that the Dow Jones and the S & P 500 index move close to their correction runs in October, while Nasdaq is approaching November nadir.
Last week, the big averages began with good wins on Monday. But then the stock market was free, painful loss, with Dow Jones losing 4.5% for the week and Nasdaq 4.9%. The S & P 500 Index gained 4.6%, still over October 29 during the day, but ending the week with a 7 month closing price.
Trade negotiations between the United States and China were rejected on news that Huawei CFO Meng Wanzhou was arrested on December 1 of Canada at US request. China summoned the US ambassador to Beijing on Sunday to protest the action.
It's not a good time to make new purchases. Be quick to take profits and cut losses cards. But be engaged. Read today's market columns and The Big Picture to stay in sync with the market.
Relative Strength Line
The relative strength line, the blue line of IBD and Marketsmith charts, tracks a share's performance vs. S & P 500 Index. It's an easy way to find out which stocks are true managers or laggards, in good markets or bad ones. An RS line that hits a new high before or with a bug is especially bullish.
In today's weak stock market, use the RS line as a way to find out which tops hold up pretty well. However, do not treat stocks with a strong RS line as a buying opportunity by itself. Apple stock, Boeing stock and Visa stock all showed bullish RS lines at various points in the last two months, just for stock prices to fall.
Apple Stock
Apple stock was one of the finest tech stocks in October. While the big averages sold sharply in October, Apple's stock broke back slightly from the top 3 in October and kept close to its 50-day moving average. The RS line hit several new heights during the month. On November 1, Apple's Apple recalled its 50-day line in strong volume, with the RS line just rising high as the stock market was in the middle of a short-term rally.
Savvy investors probably had Apple on watch lists, but it was not a purchase opportunity. After November 1, Apple closed a weak holiday, with a number of Apple iPhone vendors warning of weak demand in the next few weeks. Since November 1, the Apple stock has tumbled 24% to a seven month low. Apple's RS line is also in a seven month low.
IBD'S TAKE: Do not be tempted because Apple looks like a bargain. Several times in recent weeks, Apple stock has looked as if it could be bottom out to continue selling.
Apple stock, as a member of the Dow Jones, the S & P 500 Index and the Nasdaq Composite, has been a major feature of the lead averages over the last few weeks.
Boeing Stock
Like Apple, Boeing peaked 3 October, a few days after the broader market. Shares drew the message against the 50-day line and not for distant 200 days, but the RS line remained at or near record level. But in November, the Boeing share went on an 11-day tape strip. The shares rose, reclaimed their 50-day and 200-day Monday 3 November. But the RS line became more modest. The Boeing share closed last week with three correct losses, which fell faster than the S & P 500 index again.
View Stock
The Visa share pulled back to 200-day moving average sometimes in the stock market correction, but the RS line did not give much ground and hit new heights sometimes. By the end of November, the Visa stock moved back over the 50-day average. December 3, stocks looked short past a 145.56 double base base listing, but closing just below that point. The view layer retired again.
The RS line remains close to heights. The stock is still worth keeping on your radar.
Tesla Stock
The Tesla stock rose as high as 379.49 on Friday, over a 366.85 cup-to-trade purchase point for much of the session before reversal to close 1.4% to 357.96 . The RS line, which has risen over the last two months, struck a new 14 month high because the S & P 500 index fell much more than Tesla lager did. The RS line is bullish for Tesla, but it is difficult for leading stocks to move forward in a weak market.
The Tesla share rose late in Friday on words that CEO Elon Musk signaled his possible interest in acquiring a General Motors (GM) plant if GM continues to close several factories. It is from an interview of 60 minutes that will fly Sunday evening. Tesla is Fremont, California, factory was originally owned by GM and Toyota Motor (TM) until it was closed in 2010.
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