Dow futures: a market rally won’t do that; BBBY’s stock crashes inversely to Meme

Dow Jones futures fell overnight, along with S&P 500 futures and Nasdaq futures. Applied materials (AMAT) was reported after the close, while BBBY stock crashed overnight. The stock market rally is on the decline near the major resistance, but it’s really not pulling back, with the major indexes rising on Thursday.

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This is a sign of strength, but a modest withdrawal would be constructive. Investors should be cautious about adding significant exposure in the very near future.

BJ’s sentence (BJ) And the Canadian Solar (CSIQ) out of the rules based on solid earnings, as both hail from areas of market strength. ExxonMobil (XOM) A buy signal is flashing as oil and gas stocks continue to lead as energy prices rise. Vertex Pharmaceuticals (VRTX) is declining, but likely to create a new buying opportunity.

while, bed bath behind (BBBY) suffered a “return to meme”, dropping Thursday after that Jim Stop (GME) Chairman Ryan Cohen, a major investor in BBBY stock, has announced plans to withdraw the funds. BBBY’s stock continued to crash overnight as Cohen completed his rapid exit.

AMAT earnings

Profits of applied materials It was better than expected in the fiscal third quarter, with the chip equipment giant also heading higher. AMAT stock rose modestly in overnight trading, close to a two-month high. Shares of the chip equipment giant rose 2.1 percent to 108.27 on Wednesday. But Applied Materials stock is still well below the 200-day moving average.

AMAT earnings may be good news for competitor KLA Corporation. (KLAC). KLAC stock was quiet in extended trading after rising 1.85% to 382.02 Thursday. It works on 399.06 cup with handle Point buying, which is about to break the trend line in this handle, providing an early entry.

Vertex stock is running IBD Leaderboard and the IBD Big Cap 20. XOM stock is running SwingTrader.

Dow jones futures contracts today

Dow futures are down 0.1% against fair value. S&P 500 futures were down 0.1%. Nasdaq 100 futures fell 0.2%, even with a slight increase from AMAT stock.

Remember to work overnight in Dow Jones futures contracts and elsewhere that does not necessarily translate into actual circulation in the next regular session Stock market session.

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stock market rise

The stock market rally traded in a narrow range for most of Thursday’s session.

The Dow Jones Industrial Average rose less than 0.1% on Thursday stock market trading. The S&P 500 and Nasdaq Composite both jumped 0.2%. Small cap Russell 2000 rose 0.7%.

US crude oil prices rose 2.7% to $90.50 a barrel. Gasoline futures rose 3.1%. Natural gas futures fell 0.6%, but reached their highest levels in 14 years.

The 10-year Treasury yield fell one basis point to 2.88%.

ETFs

between the Best ETFsThe Innovator IBD 50 ETF (fifty) by 1.4%, while the Innovator IBD Breakout Opportunities ETF (fit) rose 0.5%. iShares Expanded Technology and Software Fund (ETF)IGV) He lost a small part. VanEck Vectors Semiconductor Corporation (SMH) advanced 1.4%, and AMAT stock was a notable component.

SPDR S&P Metals & Mining ETF (XME) rose 2.4% and the US ETF Global X Infrastructure Development Fund (cradle) 0.7%. US Global Gates Foundation (ETF)Planes) decreased by 0.3%. SPDR S&P Homebuilders ETF (XHB) rose 0.4%. SPDR Specific Energy Fund (SPDR ETF)XLE) up 2.7%, with XOM stock taking a big lead. SPDR Financial Choice Fund (SPDR)XLF) paid 0.1% higher%. SPDR Healthcare Sector Selection Fund (XLV) decreased by 0.4%.

Shares reflect more speculative stories, the ARK Innovation ETF (see you) The ARK Genomics ETF fell 1.1%ARKG) 1.2%.

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flashing stock buy signals

BJ stock rose 7.2% to 74.09, eliminating 71.10 buy point, despite breaking out of the high at 77.47 shortly after the opening. Investors can still buy the gap or use the daily chart to see if BJ stock can top the 75.50 area, around the bulk of Thursday’s trading. BJ’s Wholesale early Thursday reported a third consecutive quarter of accelerating earnings growth and a faster second quarter of revenue gains. The warehouse membership chain has also moved to a higher level.

Biggest competitor Costco Wholesale (cost) rose 0.8% to 560.96, comfortably in a buying zone from the base of a teacup with a handle, according to MarketSmith Analysis.

CSIQ stock rose 15% to 45.19, holding on to most of its intraday gains. Investors can buy Canadian Solar now or wait to see if it strengthens or declines modestly first.

Canadian Solar reported a 494% gain in earnings per share with revenue up 62%. The Energy-Solar Group is ranked number one out of 197, based in the United States Energy Enphase (ENPH) lead the way.

Exxon stock rose 2.4% to 94.38, rebounding from the 50-day line and breaking a downtrend since the start of its consolidation in early June. The official purchase point is 105.67. As a diversified energy giant with significant exposure to crude oil, natural gas, and refining, ExxonMobil is well positioned.

Vertex stock fell 1.65% to 294.29, falling for the third consecutive session on both low and low trading volumes. But stocks found support at the 21-day moving average. Investors can buy VRTX shares now or wait for a bit of strength.

BBBY STOCK BREAK AFTER PUMP, DISCHARGE

BBBY stock fell 19.6% to 18.55 Thursday, after a significant rally in the past few weeks. Late Wednesday, Ryan Cohen, president of original GameStop Securities, announced plans to sell his Bed Bath & Beyond properties. Late Thursday, BBBY was down 45%, as Cohen revealed he had finished selling his stake.

Moreover, Bed Bath & Beyond, a money-losing home appliances company in the real world with declining sales, has reportedly hired a bankruptcy law firm to help it tackle its unmanageable debt load, Bloomberg reported Thursday night, citing a source.

The BBBY Index is up 132% for the week at Wednesday’s high, and is now significantly lower for the week including after-hours declines.

Recently, on Monday night, Cohen revealed large out-of-the-money BBBY stock options, which helped fuel sharp gains on Tuesday and Wednesday.

But, while GameStop’s Cohen provided a pumping and dumping stimulus, Bed Bath & Beyond shares a familiar “bounce back to meme” script. Meme stocks often enjoy massive gains that get wide media attention, followed by another big intraday gain that often fades or closes lower, with a rapid drop after that.

While BBBY’s stock surged earlier in August, Tuesday’s 79% intraday gain — 29% at close — in record volume drew attention. On Wednesday, shares jumped 45% on the day to a five-month high, but it faded to a 12% advance, near session lows.

As for other meme stocks, GME stock is down 6.4% after dropping 4% on Wednesday. AMC Entertainment (AMC) is down 9.7%, below the 200-day streak. AMC stock is down 14% on Wednesday.

GME and AMC stocks fell overnight.

Market Rise Analysis

What if a market rally announces a pullback, but the pullback fails to emerge? Major indices have slipped slightly since the S&P 500 nearly hit the 200 line on Tuesday, but none of the major indexes touched the 10-day moving average.

The Dow Jones continues to hold its 200-day moving average, with the S&P 500 and the Russell 2000 index just below this key level.

The resilience of the marching market after a strong stretch is impressive. But further decline will provide an opportunity for the leading stocks to form handles or retreat to the 21-day lines. The major indicators themselves are only 3% or so above the 21-day line.

Individual stocks and sectors vary. Energy stocks come with higher prices, with Exxon Mobil and several other companies flashing buy signals in the past few days. Solar names sound strong while heavy construction, steel, and some transportation plays are being built.

Many chip names are going strong, along with some retailers like BJ’s Wholesale.

Biotech companies like VRTX stocks are pulling back, which could offer some buying opportunities of their own.

The market rally could stop quietly for several days and then go higher, but it could go the other way as well. The Nasdaq traded tightly at the end of last year, again in late March/early April, and in late May/early June. In each case, the taming business ended with a sharp sell-off.

Time to Market with IBD’s ETF Market Strategy

What are you doing now

That’s why investors shouldn’t get too aggressive right now. There are some buying opportunities, and investors should consider them, but don’t add too much exposure to an unclear market trend in the very near term.

You can still consider taking some partial profits along the way, as stocks are still vulnerable to giving up a lot of recent gains amid the sector’s rotation. This is also a way to manage your overall portfolio exposure.

Market dips and moves of different sectors create new settings, so don’t give up on your watchlists.

Read The Big Picture Every day to keep up with the trend of the market, stocks and leading sectors.

Please follow Ed Carson on Twitter at Tweet embed For stock market updates and more.

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