December 1, 2022

S&P 500 undercuts bear market lower as Treasury yields race toward key level;  What are you doing now

S&P 500 undercuts bear market lower as Treasury yields race toward key level; What are you doing now

Dow futures rose slightly overnight, along with S&P 500 futures and Nasdaq futures. The stock market saw another opening recovery on Tuesday as the 10-year Treasury yield surged around 4%. The S&P 500 fell to the bottom of a bear market, but the major indexes rose to close mixed.




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Investors should be very careful about making any moves, even when high-quality stocks are showing an upward movement.

Tuesday, Vertex Pharmaceuticals (VRTX) And the world wrestling entertainment (WWEBriefly show what would have been strong buy signals in a decent market. But they pulled back from the early gains as the indicators reversed. Energy Enphase (ENPH), after a day of bearish reversal, regained key support even after paring intraday gains. Tesla (TSLA) And the Shock Wave Medical (SWAVHitting the resistance at the 50-day lines.

Meanwhile, lawyers for Tesla CEO Elon Musk and Twitter (TWTR) on Tuesday at another preliminary court hearing before the takeover trial in October. Musk is trying to get out of the $44 billion, $54.20-a-share acquisition deal to buy Twitter. Legal experts say Twitter has a strong case to get Musk to go through with the deal, and Tuesday’s hearing appears to reinforce that.

Twitter shares rose 1.4 percent to 42.11 on Tuesday. TWTR rose modestly in late trading as the hearing continued.

After closing, egg giant Cal Men’s Food (calm) posted stronger earnings than expected. Cal Men’s earnings With revenue growth accelerating for the fifth consecutive quarter, to 103%. CALM stock fell overnight. Shares rose 1.4% to 60.53 on Tuesday, on the edge of buying territory.

ENPH and Vertex stock are on file defect 50 and the IBD Big Cap 20. The video included in this article discusses Tuesday’s bear market and analyzes Vertex, WWE and SWAV stocks.

Dow jones futures contracts today

Dow Jones futures rose 0.2% against fair value, with S&P 500 futures up 0.3%. Nasdaq 100 futures rose 0.4%.

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 tuesday

The stock market once again attempted to bounce near the open, with stronger and broader gains on Tuesday morning than on Monday. But with the 10-year Treasury yield surging to a 12-year high, buoyed by a number of stronger-than-expected economic reports at 10 AM ET, major indices reversed lower, with the S&P 500 breaking its June lows. However, indices rose to close mixed.

The Dow Jones Industrial Average fell 0.4% on Tuesday stock market trading. The S&P 500 lost 0.2%. The Nasdaq Composite Index is up 0.25%. Small cap Russell 2000 rose 0.3%.

The 10-year Treasury yield jumped 9 basis points to 3.96%, to 3.99% on the day. The 10-year bond yield has not crossed 4% since April 2010. The two-year Treasury yield was 4.3%, down during the session.

The yield on the UK’s 30-year Treasuries hit 5% on Tuesday. The new British government plans to borrow heavily for tax cuts, while investors are betting that the Bank of England will need to raise interest rates sharply to prop up the pound. The pound rebounded on Tuesday but then gave up most of its gains. This is after falling to a record low against the dollar on Monday.

US crude oil prices rose 2.3 percent to $78.50 a barrel, rebounding from their lowest levels since January.

ETFs

between the Best ETFsThe Innovator IBD 50 ETF (fifty) by 1.1%. iShares Expanded Technology and Software Fund (ETF)IGV) jumped 0.7%. VanEck Vectors Semiconductor Corporation (SMH) advance 0.8%.

SPDR S&P Metals & Mining (XME) gained 2.8%. american global aircraftPlanes) rose 1.6%. SPDR S&P Home Builders (XHB) rose 0.4%. SPDR Specific Energy Fund (SPDR ETF)XLE) advanced 1.1% and the Financial Select SPDR ETF (XLF) decreased by 0.4%. SPDR Healthcare Sector Selection Fund (XLV) decreased by 0.3%.

Stocks reflect more speculative stories, the ARK Innovation ETF (see you) and ARK Genomics (ARKG) Both rose 2.1%. Tesla stock is the highest stake in Ark Invest ETFs.


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stock to watch

Vertex stock rose 2.9% to 284.74. During the day, the shares touched 289.52, breaking the 50-day line and reaching a downward sloping trendline. In a better environment, that might be a buy signal, but the VRTX stock faded along with the market. The line relative force Hit another new level. the official buy point It is 306.05 of A flat base This is only 10% deep.

Vertex and Partner CRISPR treatments (CRSP) said Tuesday that they will begin seeking Food and Drug Administration approval for the first approved treatment using CRISPR gene-editing technology. The treatment would be sickle cell disease and beta thalassemia.

WWE stock rose to 69.95 on the day, breaking the 50-day streak and reclaiming an old 68.83 buy point. This was flirting with an early entry, but WWE stock reversed lower before recovering to rise 0.75% to 68.20. The wrestling media has a flat base with 75.33 purchase points, according to MarketSmith.

ENPH stock rose 3.6% to 284.81, reclaiming the 50-day streak. During the day, the shares reached 294.80 but hit resistance at the 21 day moving average.

SWAV stock rose modestly for the second consecutive session, up 2.4% to 260.83. But stocks hit resistance at the 50-day line. So far this week, Shockwave stock is up modestly in lighter volumes after dropping 11.7% last week.

Tesla shares jumped 2.5 percent to 282.94 on Tuesday. But stocks hit resistance at the 50-day line, paring gains slightly from 288.67 on the day. TSLA stock has 314.74 buying points from a short base within a much larger consolidation. Tesla hosts Artificial Intelligence Day Friday, with third-quarter global deliveries likely to end over the weekend.

stock market analysis

For the second session in a row, the bulls tried to resist at the open. The Nasdaq is up 2.2% a few minutes into the Tuesday session, surpassing Monday’s high.

But with Treasury yields rising again, the major indexes pared, erased, and reversed those gains.

Meanwhile, the S&P 500 fell below its June 17 low. The benchmark index joined the Dow, which broke through its lowest level on June 17 on Friday. The Nasdaq has yet to cut its bear market lows for June or even on Friday.

Even with yields holding at intraday highs, the major indexes bounced back to close mixed.

The Cboe Volatility Index, or VIX, rose to a three-month high, pulling back from intraday highs as stocks rallied of late. The fear gauge in the market is at a level that could at least point to a short-term bottom, but that could have been said for the past few days. Also, the VIX is not necessarily at a level that would indicate a long-term bear market bottom is in reach.

The inability of the market to recover for more than a few minutes is not encouraging. But even if the major indicators rebounded strongly for a whole day or two, it wouldn’t necessarily mean much. The best market days in history are bear markets.

Some of the blue-chip stocks attempted to rebound on Tuesday, but pared their gains with the market, including shares of WWE, Shockwave and Tesla.

The bear market may be about to start a new downward movement. The market could still hit June lows, although that doesn’t necessarily mean a quick turn into a strong uptrend. The market is very likely to be range bound near week or month lows.

It’s hard to see the S&P 500 and the stock market in general see a sustained rally with Treasury yields and a stronger dollar. The 10-year yield may hit resistance around the 4% level. A pullback can trigger a stock market rebound.

However, Treasury yields likely won’t break their upward trend until the Fed signals a slowdown in future rate hikes. Policy makers have not provided any such indication, and it may not happen until inflation has cooled dramatically and labor markets weaken. The 10-year bond yield is likely to outperform early, but that will likely reflect expectations of a clear economic recession in the US. Entering a recession is not exactly a recipe for a stock market boom.

However, markets are now slightly tilted towards the fourth consecutive rate hike of 75 basis points in November. Markets are now split between the year-end fed funds rate of 4%-4.25% versus 4.25%-4.5%, down slightly from Monday.


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What are you doing now

The last two days showed the risks of buying stocks during a strong open in a bear market.

Investors should be patient, and wait for signs of real strength, not just a few strong minutes or one good day. Even if the market rally started and phases A Follow-up day In the near future, there are likely to be reasons for caution. Major indices will have several resistance levels, while still likely to be at the mercy of the Federal Reserve and the bond market.

Keep a lot of cash and work on your watch lists. Relative strength is critical. But many relative leaders are struggling and less than 50 days old.

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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