Dow Jones Futures Loom, Bitcoin Refunds Over $ 20,000; Beware of the bear market

Dow Jones Futures with S&P 500 Future and Nasdaq Futures will open on Sunday evening. Bitcoin prices rose above $ 20,000 on Sunday after falling below that critical level on Saturday.




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The bear market intensified last week amid growing concerns that the Federal Reserve will push the economy into recession to control inflation.

Investors should be sidelined as key indices fall towards the pre-Govt peak. Don’t get excited by one-day rebounds like Friday is a technology-led breakthrough. Instead, get ready to take advantage of the next steady load.

Here are five that do not hold many shares, but do fair work: Tesla (DSLA) Competitor BYD (I will do), Vertex Pharmaceuticals (VRDX), Compost and lithium game SQM (SQM), Eli Lily (LLY) And Enface energy (ENPH)

Everyone has Relative strength lines Max or near. The RS line, the blue line in the charts provided, tracks the performance of a stock against the S&P 500 index.

BYD stock is close to tradition Buy point. SQM stock finds support after big gains in its 50-day run. ENPH stock regained that key position on Friday. Vertex Stock and Rat Lily are not below their 50-day line.

LLY stock is in motion IBD Leaderboard. Rat Lily and SQM shares IBD 50. BYD is Friday IBD Day Stock.

The video embedded in this article is a weekly market activity and analyzes BYD, SQM and Enphase stocks.

The Fall of Bitcoin

Bitcoin broke above the psychologically important $ 20,000 level on Saturday. It hit $ 17,601.58 on Saturday afternoon, the new 18-month low and its December 2017 high of $ 18,942.

But on Sunday afternoon the price of Bitcoin returned to over $ 20,000. It is still well below the November 2021 high of $ 68,990.90 and approximately one-third since June 11.

Other cryptocurrencies that were more or less dormant than Bitcoin in the “crypto winter” also returned strong on Sunday.

This includes Dogecoin, which rose to 74 cents in early 2021 and fell 5 cents on Saturday. Tesla CEO Elon Musk tweeted Sunday that he is still buying it.

Investors generally left risky assets amid fears of inflation and recession, but crypto, speculative growth is turning bearish against stocks. After Bitcoin and Nasdaq peaked in November, cryptocurrency ARK Innovation tracked ETF (ARKK) For several months close. But ARKK did not cut its low volume in late May, while Bitcoin accelerated its losses. In recent weeks, many crypto lenders have stopped withdrawing, while so-called staplecoins have not been linked.

Dow Jones Futures Today

Dow Jones Futures with S&P 500 Future and Nasdaq 100 Futures will open at 6pm ET.

U.S. markets will close on Monday ahead of the Junteen holiday, but other exchanges around the world will remain open. Dow Futures will trade normally on Monday.

Federal Reserve Governor Christopher Waller said at a Fed meeting on Saturday, in late July, that he wanted another 75-point-point rate hike. Markets are currently seeing more potential for that, but it is not fully priced.

Remember that action is overnight Dove futures Elsewhere there is no need to translate it into the next regular real trade stock market Session.


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The stock market

The stock market suffered major weekly losses again, with key indices falling to their worst levels in more than a year.

The Dow Jones Industrial Average fell 4.8% last week Stock market trading. The S&P 500 index fell 5.8%. The Nasdaq compound fell 4.8%. Small Cap Russell 2000 fell 7.5%.

10-year treasury revenue increased by 8 basis points to 3.24%. On Tuesday, the 10-year yield rose to 3.48%, the highest in 11 years.

U.S. crude oil futures fell more than 9% last week to $ 109.56 a barrel, falling for seven consecutive weeks. Petrol futures also fell sharply. Natural gas prices fell.


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ETFs

In the middle The best ETFsInnovator IBD 50 ETF (FFTY) Sank over 12% last week, while Innovator IBD Breakout Opportunities ETF (Boat) Slipped 9.1%. iShares Extended Technology-Software Industry ETF (VAT5.1% stumbled. WANEX Vectors Semiconductor EDF (SMHLost 8.1%.

SPDR S&P Metals & Mining ETF (XME) Sold 10.4% last week. Global X US Infrastructure Development ETF (PavementFell 8.6%. US Global Jets ETF (JETS) Decreased by 8.9%. SPDR S&P Homebuilders ETF (XHBDecreased by 11.4%. Energy Selection SPDR ETF (XLE17.2% Defective and Financial Select SPDR ETF (XLFGave up to 4.8%. Health Care Selected Sector SPDR Funding (XLV) Both Lily and VRDX shares lost 4.5%.

Represents more speculative story stocks, ARK Innovation ETF (ARKK) Fell 3.3%, recovered from a low and still did not lower its low in late May. ARK Genomics ETF (ARKG) Less than 1% after setting a new two-year minimum. Tesla plays a key role throughout the Ark Invest ETFs. Arc holds a small position in BYD stocks.


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All over the world

BYD stock rose 4% on Friday, but fell 4.1% during the week to 37.45, breaking the five-week winning streak. The stock has forged a handle on a weekly chart, giving it a 39.81 buy point. With such a deep foundation – 48% – the risks of a failed fracture are high. A long handle, especially long enough to have its own tight foundation, can be creative.

But with China EV stocks – and Chinese stocks generally listed in the US – recovering, BYD stocks will not be in the park for long. Neo (NIO), Xpeng (XPEV) And Li Auto (LI) Is running up, Li Auto is approaching the maximum. Li Auto is set to launch its second hybrid SUV, the L9, on Tuesday.

BYD’s internal battery and chip operations, with massive capital expenditures over the past 18 months, spurred the largest sales growth, allowing the company to avoid the supply chain and China’s coveted lockdown woes. Sales of its EVs and plug-in hybrids topped Tesla’s EV-only sales in the second quarter, and may be at the forefront of that.

Tesla shares fell 6.7% last week to 650.28, which fell to its lowest level in late May.


Tesla Vs. BYD: Which EV company is best to buy?


Enface Stack

Enface shares fell 5.8% to 184.90 last week. Friday’s gain of 8.9% pushed ENPH shares above its 50-day and 200-day taxes. A breakout Double base At the beginning of June, the 193 purchase point is no longer valid. But now that a handle has formed, the buying point of 217.33 is slightly above the June 8 high. Keep in mind that the Enface stock has big moves every day. Even if solar energy stocks are sold in oil and gas names on Friday, it will not last.

More ENPH Stock and Solar Edge Technologies (SEDG) One of the best performers of the S&P 500 on Friday. SEDG stock restored its 50-day line, working on the cup-with-hand base.

Vertex Stack

Vertex stock was up 3.2% last week to 253.09, recovering almost to its 50-day high with a 4.8% pop on Friday. A 276.10 Handle with cup Purchase point is invalid, so the official entry is 292.85. But investors can use 279.23 as an initial entry.

Eli Lily Stock

Eli Lilly stock was down 2.15 last week to 390.90, hitting the 50-day resistance on Friday. A strong move above the 50-day level may provide early entry for the LLY stock. The previous flat-base buying point of 314.10 is no longer worth it, but Lily Stock is in the process of making another consolidation next to it.

SQM stock

SQM stock was down 6% at 90.29 last week, but rose on Friday after finding support in its 50-day chart. The stock has erased 27% of its gains over the past few weeks from a buying point of 90.97. But a strong rebound from the 50-day line could provide entry for the SQM stock.

Both SQM and BYD stocks are key components in the Global X Lithium & Battery Tech ETF (LIT), With Tesla.

Market analysis

The sharp market correction – the bear market for the S&P 500 and Nasdaq – continued to worsen last week.

Friday’s mixed action was not encouraging. Yes, the Nasdaq and S&P 500 rose on Friday, so it’s technically one of the stock market rally efforts for those two indices. But they only reduced the steep weekly losses.

The S&P 500, the Dow Jones and the S&P 500 have all been at their worst since late 2020.

Even if the market goes up and the stage goes up a The following day In the future, there will be many more reasons to be skeptical and may buy some shares.

The oil and gas sector, a sustained segment of market strength, plummeted last week, illuminating sales signals by several big winners. This field may not be complete, but it did become a feature, and the charts were damaged.

Some stocks like BYD and SQM are close to buy points, and other names like Vertex, Lilly or Enphase can be interesting with a few solid sessions, and many potential leaders can take weeks to repair. This is a situation where a new market rally is taking a firm hold.

Currently, the stock market is likely to continue to decline. The economy heading towards recession is not an ideal environment for stocks when the Federal Reserve is at the beginning of a tight cycle of aggression.

All of the key indices are close to pre-Govt. It may provide a potential support level, but it does not have to be. Russell 2000 is already reducing that key size.


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What to do now

Investors have no reason to invest, and even energy stocks illuminate selling signals. The only possible exception is moderate exposure in long-term winners.

However, it is important to look at market activity and be involved in preparing for the next improvement.

It’s time to refresh your watchlist, get your pencils, not your pens. Look for stocks with strong relative strength, especially if they hold key support levels. But many stocks with strong RS taxes now have ugly tables.

According to The big picture Every day the direction of the market and the leading stocks and sectors must be consistent.

Follow Ed Carson on Twitter @IBD_ECarson For stock market updates and more.

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