Dow Jones futures rose modestly Monday morning, along with S&P 500 futures and Nasdaq futures. The Bitcoin price rebounded to $20,000 on Sunday after tumbling far below that key level on Saturday.
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The bear market intensified last week, amid growing concerns that the Federal Reserve will be forced to drive the economy into a recession in order to rein in inflation.
With the major indexes plunging toward their pre-Covid peaks, investors should be on the sidelines. Don’t get excited by one-day rebounds, such as Friday’s tech-led advance. Instead, prepare to take advantage of the next sustained uptrend.
Stocks Holding Up
Not many stocks are holding up, but here are five that are doing a reasonable job: Tesla (TSLA) rival BYD (BYDDF), Vertex Pharmaceuticals (VRTX), fertilizer and lithium play SQM (SQM), Eli Lilly (LLY) and Enphase Energy (ENPH).
All have relative strength lines at or near highs. The RS line, the blue line in the charts provided, tracks a stock’s performance vs. the S&P 500 index.
BYD stock is near a traditional buy point. SQM stock is finding support at its 50-day line after round-tripping big gains. ENPH stock regained that key level on Friday. Vertex stock and Eli Lilly aren’t far below their 50-day lines.
LLY stock is on IBD Leaderboard. Eli Lilly and SQM stock are on the IBD 50. BYD was Friday’s IBD Stock Of The Day.
The video embedded in this article discussed the weekly market action and analyzed BYD, SQM and Enphase stock.
Dow Jones Futures Today
Dow Jones futures rose 0.2% vs. fair value. S&P 500 futures climbed 0.3% and Nasdaq 100 futures advanced 0.6%.
U.S. crude prices fell slightly.
U.S. markets will be closed Monday in observance of the Juneteenth holiday, but other exchanges around the world will be open. Dow futures will trade normally.
Federal Reserve Gov. Christopher Waller said Saturday that he favors another 75-basis-point rate hike at the late July Fed meeting. Markets see a high likelihood of that currently, but it’s not fully priced in.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Bitcoin Plunges, Rebounds
Bitcoin broke well below the psychologically key $20,000 level on Saturday. It hit $17,601.58, a fresh 18-month low and below its December 2017 peak of $18,942.
The price of Bitcoin on Monday morning was back above $20,000. That’s still far below the November 2021 peak of $68,990.90 and down roughly a third from June 11.
Other cryptocurrencies, which have crashed as much or more than Bitcoin in the “crypto winter,” also bounced back strongly on Sunday.
That includes Dogecoin, which skyrocketed to 74 cents in early 2021 and undercut 5 cents on Saturday. Tesla CEO Elon Musk tweeted Sunday that he is still buying it.
Investors have fled risky assets generally amid inflation and recession fears, but crypto seems to be diverging bearishly vs. speculative growth stocks. After Bitcoin and the Nasdaq…
Read More: Dow Jones Futures Rise, Bitcoin Rebounds After Crash; Beware The Bear