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Stock Market Today: Apple Weighs On Nasdaq, Dow Flat; Hold Or Sell These 2 Leaders? | Stock News & Stock Market Analysis

Apple (AAPL), facing reports that its upcoming Nov. 3 launch of the iPhone X may be not as robust as expected, dropped more than 2% for its biggest decline since Aug. 10 and weighed on all of the major indexes in late-afternoon trade Thursday.

XAutoplay: On | OffApple’s gap down in price, down 4.20 to 155.56, was also coming in sharply above-average turnover. The stock also pierced its 50-day moving average.

The negative action hints that institutional investors are not all ready to take shares higher after its Aug. 2 breakout from a new flat base at 156.75 failed to make a lot of headway.

For now, watch to see if the stock can limit its decline as a new base may form.

Apple is trading just 5% below its 164.94 peak. At that peak, the iPhone, iPad and digital services titan advanced as much as 39% from a Jan. 6-9 breakout from a first-stage cup with handle.

At 3 p.m. ET, the Nasdaq composite slipped nearly 0.6% after being down more than 1% amid a sharp drop in Chinese stocks. Overnight, the Hang Seng Index in Hong Kong dropped 1.9% to 28,159, suffering its biggest drop since Aug. 11 on the 30th anniversary of the Black Monday stock market crash on Wall Street.

The S&P 500 and the Dow Jones industrial average were both off less than 0.1%. Volume is running mildly higher vs. the same time Wednesday on both main exchanges.

Homebuilding shares led the upside, along with sharp gains by desktop software, wholesale drug distribution, coal, specialty retail and medical services stocks, all up 1% or more as a group.

Airline, tobacco, retail auto dealing and automaker stocks paced the downside.

Among leading stocks, Control4 (CTRL) and Weibo (WB) fell harder than the stock market, down 6% and 2%, respectively.

Control4 dropped as much as 2.98 points, or 10%, during Thursday’s session. Normally, a stock that shows the biggest single-session point drop in heavy turnover since the breakout is flashing a key sell signal. Such a sell-off may presage further heavy professional selling.

However, please see on a daily chart how Control4, an expert in software for smart homes, is finding buying support at the 50-day moving average. That’s bullish. A steep drop through the 50-day line in monster volume would not be bullish and serves as a good defense-oriented sell signal to lock in gains.


IBD’S TAKE: As seen in IBD’s proprietary, Stock Checkup, Control4 sports an unusually strong up/down volume ratio of  2.2. A ratio of 1.0 or higher is generally favorable when selecting stocks to buy. Read this Investor’s Corner to learn more about the usefulness of this easy to use technical indicator for selecting growth stocks.


Notice how Control4 found nice buying support at or near the 50-day line in mid-April, the end of June, and on Aug. 4. These temporary dips, followed by rallies to new highs, have resulted in a stock keeping a strong trend of higher highs and higher lows.

The Salt Lake City-based software firm initially broke out on Feb. 10 with a breakaway gap past a 12.70 buy point in a 4-1/2-month base. That base featured a 21% drop from head to toe, too deep for a flat base, but well within the parameters of a normal cup with handle or double-bottom base.

Weibo, a leader in online social networking in China, is trading beneath the 50-day line but is bouncing off intraday lows. Volume is dull, indicating that mutual funds, large investment advisors, banks and the like are not selling en masse.

Watch for a potential new base to form. Weibo, now a big cap tech with a $21 billion market value, is trading 10% off a 108.30 high.

The Street sees Weibo earnings rising 87% to 45 cents a share, following a 140% bulge in the year-ago quarter.

In other markets, crude oil snapped a four-day win streak amid growing expectation that OPEC will extend a supply cut agreement well past March of 2018. WTI futures fell 1.3% to $51.37 a barrel.

The yield on the benchmark U.S. Treasury 10-year bond held steady at 2.31%.

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