Dow futures loom, bitcoin bounce to $20k; Beware the bear market

Dow futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. Bitcoin price rebounded to $20,000 on Sunday after falling below that key level on Saturday.

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The bear market intensified last week, amid growing concerns that the Federal Reserve will have to push the economy into recession in order to rein in inflation.

With major indicators sliding towards pre-Covid peaks, investors should be on the sidelines. Don’t get excited about one-day bounces, like Friday’s technological advances. Instead, prepare to take advantage of the next continuing uptrend.

Not many stocks are holding up, but five stocks do a reasonable job: Tesla (TSLA) Competition BYD (BYDDF), Vertex Pharmaceuticals (VRTX), fertilizer and lithium toys Square meters (Square meters), Eli Lilly (LLY) And the Energy Enphase (ENPH).

Everyone has Lines of relative force At or near altitudes. The RS line, the blue line in the provided charts, tracks the stock’s performance against the S&P 500 Index.

BYD stock is close to traditional stock buy point. SQM stock finds support at the 50-day line after big gains. ENPH stock regained this key level on Friday. Vertex and Eli Lilly stocks are not much below their 50-day streaks.

LLY stock is running IBD Leaderboard. Eli Lilly and SQM are located in defect 50. It was BYD on Friday IBD stock today.

The video included in this article discusses the weekly market movement and analyzes BYD, SQM and Enphase stocks.

Plunge Bitcoin

Bitcoin broke below the key psychological level of $20,000 on Saturday. It was $1,701.58 on Saturday afternoon, a new 18-month low and below its December 2017 peak of $18942.

But on Sunday afternoon, the price of Bitcoin returned to more than $20,000. This is still well below the November 2021 peak of $68,990.90 and down nearly a third from June 11.

Other cryptocurrencies have fallen just as much, or more, in what is being described as the “crypto winter.”

Dogecoin, which jumped to 74 cents in early 2021 and below 5 cents on Saturday, rebounded somewhat on Sunday. Tesla CEO Elon Musk tweeted Sunday that he is still buying it.

Investors have generally fled risky assets amid inflation and recession fears, but cryptocurrencies appear to diverge significantly against speculative growth stocks. After Bitcoin and Nasdaq peaked in November, the cryptocurrency tracked the ARK Innovation ETF (see you) closely for several months. But ARKK did not reduce its lows in late May, while Bitcoin increased its losses. In recent weeks, several cryptocurrency lenders have suspended withdrawals while stablecoins have become unrestricted.

Dow jones futures contracts today

Dow futures open at 6 PM ET, along with S&P 500 futures and Nasdaq 100 futures.

US markets will be closed Monday for the Juneteenth holiday, but other exchanges around the world will be open. Dow futures will trade normally on Monday.

Federal Reserve Governor Christopher Waller said Saturday that he favors a 75 basis point rate hike at the Fed’s meeting in late July. Markets see a high potential for that at the moment, but it’s not fully priced in.

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

The stock market experienced significant weekly losses again, with major indexes plunging 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 fell 5.8%. The Nasdaq Composite Index fell 4.8%. Small cap Russell 2000 fell 7.5%.

The 10-year Treasury yield rose 8 basis points to 3.24%. On Tuesday, the 10-year yield rose to 3.48%, an 11-year high.

US crude oil futures fell more than 9% to $109.56 a barrel last week, ending a seven-week losing streak. Gasoline futures also fell sharply. Natural gas prices fell.

Stock market forecast for the next 6 months

ETFs

between the Best ETFsThe Innovator IBD 50 ETF (fifty) is down just over 12% last week, while the Innovator IBD Breakout Opportunities ETF (fit) slider 9.1%. iShares Expanded Technology and Software Fund (ETF)IGV) faltered 5.1%. VanEck Vectors Semiconductor Corporation (SMH) lost 8.1%.

SPDR S&P Metals & Mining ETF (XME) sold off 10.4% last week. Global Infrastructure Development Fund X US (cradle) fell by 8.6%. US Global Gates Foundation (ETF)Planes) down 8.9%. SPDR S&P Homebuilders ETF (XHB) down 11.4%. SPDR Specific Energy Fund (SPDR ETF)XLE) by 17.2% and the Financial Select SPDR ETF)XLF4.8% surrendered. SPDR Healthcare Sector Selection Fund (XLV) lost 4.5%, with both Lilly and VRTX shares.

Shares reflect more speculative stories, the ARK Innovation ETF (see you) is down 3.3%, bouncing off the lows well and not breaking the lows in late May. ARK Genomics ETF (ARKG) is down just under 1% after hitting a two-year low. Tesla remains a major ownership via Ark Invest ETFs. Ark has a small BYD stock position.

Top 5 Chinese stocks to watch right now

BYD stock

BYD stock rose 4% on Friday but fell 4.1% to 37.45 for the week, cutting a five-week winning streak. The stock has formed a handle on the weekly chart, giving it 39.81 buy points. With such a deep base – 48% – the risk of a failed breakout is higher. A long handle, especially one that is long enough to have its narrow base, will be constructive.

But with China EV stocks rebounding — and US-listed Chinese stocks in general — BYD stock may not be on hold for long. New (NIO), Exping (XPEV) And the Lee Otto (LI) is on, with Li Auto approaching highs. Li Auto will unveil its second hybrid SUV, the L9, on Tuesday.

BYD’s internal battery and chip operations, along with massive capital spending over the past 18 months, have led to huge sales growth and allowed the company to avoid supply chain problems and the China Covid shutdown. Its sales of electric vehicles and plug-in hybrids will top Tesla’s electric-only sales in the second quarter, and it may maintain that lead.

Tesla stock fell 6.7% last week to 650.28, close to its lows in late May.

Tesla vs. BYD: Which EV giant is the best one to buy?

Enphase Arrow

Enphase stock fell 5.8% to 184.90 last week. Friday’s 8.9% gain pushed ENPH stock back above the 50-day and 200-day line. break from double bottom base In early June, it quickly stumbled with 193 purchase points that were no longer valid. But a handle is now formed, with 217.33 buying points above the June 8 high. Keep in mind that the Enphase stock has significant daily movements. And while solar stocks bucked the aggressive sell-off of oil and gas names on Friday, that may not last.

ENPH and SolarEdge Technologies (SEDG) among the top performers in the S&P 500 on Friday. SEDG shares have reclaimed their 50-day streak, working on a cup base with a handle.

Vertex Arrow

Vertex stock rose 3.2% to 253.09 last week, almost reclaiming the 50-day streak with a 4.8% gain on Friday. A 276.10 cup with handle The point of purchase is no longer valid, so the official entry is 292.85. But investors can use 279.23 as an early entry.

Eli Lily Stock

Eli Lilly’s stock fell 2.15 to 390.90 last week, hitting resistance at the 50-day line on Friday. A strong move above the 50-day line may provide an early entry for LLY stock. The previous flat base buy point at 314.10 is no longer valuable, but Lilly stock is in the process of forming another consolidation beside it.

SQM stock

SQM stock fell 6% last week to 90.29, but rose on Friday after finding support at the 50-day line. The stock erased a 27% gain from 90.97 buying points in the past few weeks. But a strong rebound from the 50-day line could provide an entry for SQM stock.

Both SQM and BYD stock are major components of the Global X Lithium & Battery Tech ETF (lit), along with Tesla.

market analysis

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

Friday’s mixed action was hardly inspiring. Yes, the Nasdaq and the S&P 500 are up on Friday, so it’s technically the first day to try a stock market rally for these two indices. But they only trimmed the steep weekly losses.

The S&P 500, Dow Jones, and S&P 500 indices all hit their worst levels since late 2020.

Even in the case of the rise of the market and stages A Follow-up day In the near future, there are still many reasons to doubt, and few stocks to buy.

The oil and gas sector, the only permanent area of ​​market strength, fell last week, with several big winners issuing sell signals. The sector may not be finished, but it was a change of character, with blueprints damaged.

While some stocks like BYD and SQM are close to buying points, and others like Vertex, Lilly or Enphase might be interesting with a few strong sessions, many potential leaders could take weeks to fix. This is in a scenario where the market is taking a new high with a lot of force.

For now, the stock market is likely to continue falling. An economy teetering into recession while the Fed is early on in a tight tightening cycle is not a great environment for stocks.

All major indicators are close to pre-Covid peaks. This could offer a potential support level, but it should not continue. Russell 2000 is already undermining this key level.

Time to Market with IBD’s ETF Market Strategy

What are you doing now

Investors have no reason to invest, even energy stocks are flashing sell signals. The only possible exception is the modest exposure of long-term winners.

With that said, it’s important to stay engaged, keep an eye on market moves and prepare for the next bullish trend.

It’s time to get your pencils, not your pens, to update your watch lists. Look for stocks with strong relative strength, especially if they hold key support levels. But a lot of stocks with strong RS lines will now have ugly charts.

Read The Big Picture Every day to stay in sync with the trend of the market, stocks and leading sectors.

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