Dow Jones Futures: Why This Market Is Worse Than A Bear Market; Tesla Stock, Microsoft Stock, Cisco Stock
Dow Jones futures rose late Tuesday, along with S & P 500 futures and Nasdaq futures, after Huawei CFO Meng Wanzhou was granted bail, easing China trade warfears. The current volatile stock action is worse in many ways than a stock market correction or full-blown bear market. Edwards Lifesciences (EW), Microsoft (MSFT), Cisco Systems Tesla (TSLA) (CSCO) or View (V) in recent days – the odds are high that the market will shift lower for an hour, day or week. Tesla stock and Edwards Lifesciences stock both cleared buy points intraday but pared gains to close back below their entries as the stock market faded into the close. Dow Jones components Microsoft stock, Cisco stock and Visa stock peeked out into buy zones on Dec. 3, but quickly retreated.
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Dow Jones Futures Today
Dow Jones futures rose 0.6% above fair value. S & P 500 futures climbed 0.6%. Nasdaq 100 futures jumped 0.8%. Stock futures got a boost as a Canada judge granted Huawei CFO Meng Wanzhou bail, easing China trade-war tensions. President Donald Trump told Reuters in an interview published soon after the bail news that he would consider intervening in the Huawei CFO case if it served national security and helped with a China trade deal.
Earlier Tuesday, China moved to lower tariffs on US-made from 40% to the 15% that other foreign-made cars pay.
Stock Market Roller Coaster
In a bear market, savvy investors know to get out.
A key tenet of CAN SLIM investing is to buy leading stocks as they are breaking out at or near highs. That maximizes the chances that a stock will rise, and rise significantly. Men det antar at aktiemarkedet er i en sund uptrend. In een choppy markt, kan er een upswing voor een paar uur of dagen gevolgd door downswings.
In bijna alle gevallen, zal een aandelen een duidelijk punt kwijt worden wanneer de markt op korte termijn upswing is.
Tesla Stock, Edwards Lifesciences Stock
Tesla stock rose as high as 372.17, moving a 366.85 buy point for de derde keer in vijf sessies. But stocks then reversed to as low as 360.23 before rebounding to close up 0.4% at 366.76.
Edwards Lifesciences stock just cleared a 165.41 entry intraday only to slip back to 163.19 at the close up 0.8%.
Cisco Stock
On Dec. 3, Cisco stock managed to close above a buy point. Dessverre, det også markerede en kortvarig topp for de største gennemsnit. Cisco shares retreated over the next few sessions, falling 5.6% below the buy point intraday on Dec. 10.
Microsoft Stock, Visa Stock
Microsoft stock and Visa stock tipto apply double-bottom buy points on Dec. 3, but unlike Cisco stock could not even close above the entry. Both pulled back, especially Visa.
Microsoft and Cisco stocks made new deals and buy points in their consolidations on Tuesday, with their relative strengths at or near new highs. Visa stock has a trade-like formation, but it's too low in the base to present a valid buying opportunity.
The five stocks cited above are relatively mild scenarios.
Ulta Beauty Stock Takes Ugly Turn
Ulta Beauty (ULTA) had a powerful breakout on Nov. 8 and kept rising as much as 11% from the buy point. Shares pulled back and briefly round-tripped that double-digit gain, a strong sell signal, heading into earnings. Ulta Beauty failed to impress investors, sending the stock plunging 13% last Friday and continuing to retreat this week.
Perhaps the stock market will shake off its intraday swings and move solidly higher for several sessions. That would be a good sign, but could also be a bear trap. Investors should consider staying on the sidelines until the market uptrend takes a firmly positive tone. If you stay invested, stay alert and cautious.
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