The Dow Jones Industrial Average dropped 100 points Monday, as Bitcoin spiked above $46,000. Tesla stock raced higher after an analyst upgrade.
Tesla (TSLA) looked to rebound from Friday’s 2.2% sell-off, rallying more than 2% Monday morning following a Jefferies upgrade.
Dow Jones Today
The Dow Jones Industrial Average lost 0.3% Monday, while the S&P 500 traded down 0.1%. The tech-heavy Nasdaq composite gained 0.1% in morning trade.
U.S. Stock Market Today Overview
Last Update: 10:48 AM ET 8/9/2021
Among exchange traded funds, the Innovator IBD 50 (FFTY) traded down less than 0.1% Monday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) moved 0.1% higher. Meanwhile, the SPDR S&P 500 ETF (SPY) lost 0.2%.
Stock Market Rally
The Dow Jones industrials and the S&P 500 eased from Friday’s record highs, while the Nasdaq recovered a part of Friday’s modest losses.
Friday’s Big Picture column commented, “The market trend remains in a confirmed uptrend. Leading growth stocks are mostly acting well, like Advanced Micro Devices (AMD), which triggered the eight-week hold rule the past week. But there are some recent losers. Roku (ROKU) triggered the 7%-8% loss-cutting sell rule from a 463.09 buy point last week.”
(Be sure to check out Thursday’s Big Picture for a detailed breakdown of how to manage exposure in the current stock market.)
For more stock market commentary, check out IBD’s The Big Picture.
Bitcoin Prices Spikes Above $46,000
The price of Bitcoin briefly surged above $46,000 before paring some gains. Bitcoin traded around $45,700 in morning trade, according to Coindesk.
The Grayscale Bitcoin Trust ETF (GBTC) advanced almost 5% and is moving further above its 50-day moving average line.
Dow Jones Stocks To Buy And Watch: Home Depot
Dow Jones leader Home Depot is trying to break out past a cup with handle’s 333.55 buy point, according to IBD MarketSmith chart analysis. The 5% buy area goes up to 350.23.
Shares dropped 0.4% Monday morning.
Stocks To Buy And Watch: MercadoLibre, Square, Twitter
IBD Leaderboard stock MercadoLibre is trading right at a 1,755.05 buy point following Thursday’s nearly 14% surge. Shares dipped 0.1% Monday. Per Leaderboard analysis, the stock’s first 5 minutes of trading notched a high of 1,755.05, setting an alternate entry for aggressive investors. MELI is trading at a reasonable level above that price. A trend line within the base may also offer another early entry point.
The stock is also building the right side of a cup base, according to IBD MarketSmith chart analysis. Another possible entry looms at 2020.10. And be on the lookout for a potential handle to offer a more risk-optimal buy point.
IBD SwingTrader stock Square is back in buy range past a 267.87 buy point in a cup-with-handle base amid Monday’s 0.5% gain. The 5% buy zone goes up to 281.26.
According to the IBD Stock Checkup, SQ stock shows a 96 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.
Social media giant Twitter is approaching a double-bottom-with-handle’s 73.44 buy point. Shares are about 5% away from the entry following Monday’s 0.3% loss.
Tesla stock rallied over 2% Monday, looking to rebound from Friday’s sell-off. Early Monday, Jefferies upgraded Tesla from hold to buy, raising the price target from 700 to 850. The electric-vehicle giant is rebounding from support around its 50- and 200-day moving averages. Another strong show of support at these levels was bullish for the stock’s prospects.
Shares are trying to move back above a 700.10 aggressive buy point deep inside a correction. Meanwhile, a deep, large base continues to take shape.
On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple moved down 0.1% Monday, on pace to add to Friday’s 0.6% loss. The stock hit an all-time high on July 15 at 150. Apple stock remains out of the 5% buy zone from a 137.17 entry in a cup base. On a weekly chart, IBD MarketSmith chart analysis also places a buy point at 145.19 in a consolidation, which would put Apple in a buy range through 152.45.
Software giant Microsoft fell 0.2% early Monday, but remains just off record highs. Microsoft continues to trade solidly above a cup base’s 263.29 buy point. The stock is extended above the 5% buy zone, which goes up to 276.45.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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