The Dow Jones futures fell modestly on Sunday evening, along with the S & P 500 futures and Nasdaq futures, between China's negative trading and Chinese economic data. The equity market rally continued to rise higher last week, with Dow Jones, the S & P 500 and Nasdaq composite indexes that recovered their 50-day moving average last week. Microsoft (MSFT) Netflix (NFLX) Adobe (ADBE) Salesforce.com (CRM) e Visa (V) are large capitalist stocks to keep an eye on. Microsoft actions, Adobe actions, Salesforce shares and Visa shares are all within 5% of the appropriate stores. The Netflix stock, which sold on Friday with mixed results and a weak stance, is far from a current buying point but seems to be about to carve a new lower entry.
All five stocks have market capitalizations of over $ 100 billion. The Microsoft title, with a valuation of $ 826 billion, is just below Amazon.com (AMZN) to $ 829 billion for the crown of market capitalization. The Adobe and Salesforce actions have the best IBD ratings of 99. The Microsoft stocks, Netflix and Visa stocks all have 96 composite ratings.
Dow Jones Futures Today
Dow Jones futures fell 0.35% from fair value. S & P 500 futures withdrew by 0.3%. The Nasdaq 100 futures lost 0.5%. Washington and Beijing are distant from each other for the theft and transfer of intellectual property, according to a Bloomberg report citing US sources, overshadowing a bit of optimism about China's trade negotiations that have raised the stock market in recent weeks. The news about the differences in IP in trade negotiations in China is not a surprise. The real question is whether President Donald Trump will accept a trade agreement with China, in which Beijing will buy many more assets from the United States, or whether it will insist on long-term IP progress and concerns over subsidies.
Chinese GDP and a series of other economic data are due shortly. Reports are expected to show that the second largest world economy will suffer more pressure at the end of last year. Chinese leaders are working on stimulus measures, but want to avoid heavy debt, low-yield measures some years ago.
Remember that Dow futures and other nighttime actions do not necessarily translate into actual trading in the next regular session. US equity markets will be closed on Monday for Martin Luther King's party.
The stock market rally looks healthy, with the major averages erasing last week's key resistance on hopes for a trade agreement in China. It is still unclear whether this stock market rally is just a short-term tradable rally or the start of a significant uptrend beyond the highs of 2018. After the Martin Luther King stock market party, the next test key will exceed the 200-day line. The Dow Jones is not far from this long-term level, followed by the S & P 500 and the Nasdaq. The 200-day Nasdaq line is currently around the peak of the December 3 technology index, which would be another test.
But what this stock market rally really needs is the best stocks that expand into the buying zones. Others continue to do so, but it has been a trickle that rises slowly rather than a flood. Dozens of best stocks accumulate near the stores, so investors should keep an eye on them.
First we take Netflix. The Netflix stock is currently 19% below the historical maximum of 21 June of 423.20. It drops 12% from the peak of 2 October, which could be interpreted as the beginning of a new base of cups. However, it seems that Netflix is handling correctly. A handle must be flat down on a slope and be at least five days long, shaking the weak supports. Netflix's proto handle only lasts 3 days after the 4% downgrade on Friday. If the Netflix stock remains in its current range – which is by no means guaranteed by the fact that investors continue to digest the company's earnings and guidelines – it will have adequate management since the close on Wednesday with a buy point of 358.95 .
This handle would be higher than the average consolidation point of Netflix, using the 21 June or 2 October peak as the left side.
The relative strength line, which replicates the performance of a stock compared to the S & P 500 index, has recently reached its six-month high.
The Microsoft title had a failed breakout from a double-bottom basis on December 3, then plunged into the broader market until December 24th. During the sale, the RS line remained in record territory, as Microsoft shares fell less than the S & P Index 500. But in the stock market rally, technology giant Dow Jones lagged slightly, although shares rose 4.8% last week to recover 200-day and 50-day lines.
The Microsoft title is now 5% lower at a point of purchase of 113.52 from a base of cups from December 3. The shares are 7% below the historical maximum 116.18 of 3 October.
Salesforce stocks hit the low on November 20 and did not approach a level undercut during the December market crash. So the software giant's RS line has gone up, hitting new peaks in the last two weeks. The Salesforce stock recovered its 50-day and 200-day lines on the S & P 500's follow-through day on January 4, before moving decisively above the key area of resistance last week. The shares now are 5% below a 161.29 point of purchase in a consolidation that dates back to October 1st.
Adobe Stock is working on a double bottom basis with a 260.82 point of sale. The RS line is trading around the highs, but has moved sideways since the end of May. Last week Adobe's share was moved over the 50 day line and Friday recovered its 200 days. The shares are 5% below the item.
The Visa shares, like the Microsoft shares, have staged a failed attempt to break the double fund on December 3, before falling to a minimum of eight months by December 24th. But the RS line has moved higher and higher and continued to move forward in the early part of the stock market rally. The Visa shares have consolidated just above the 50-day and 200-day moving averages in the last two weeks. The financial giant Dow Jones now has a point of purchase of 139.58 units within a consolidation that dates back to 3 December.
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