Dow Jones rallies as Bitcoin stumbles: Lucid plunges 17% on SEC probe; Tesla falls on a key support

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The Dow Jones Industrial Average rose 300 points on Monday, as the price of Bitcoin briefly fell below $ 48,000. Lucid stock plunged 17% on news of a Securities and Exchange Commission investigation, while Tesla threatened to add to steep losses last week as it nears a level key support.

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Among the leaders in the Dow Jones, Apple (AAPL) was up more than 2% on Monday morning, while Microsoft (MSFT) was trading down 0.3% in today’s stock market. Nike (NKE) edged up, still below a buy point after Friday’s modest gain.

Electric vehicle leader Tesla (TSLA) fell more than 5% on Monday. Peer EV Rivian (RIVN) rose nearly 2%, while Lucid Group (LCID) fell 17%. Chinese electric vehicle leaders Li Auto (LI) and Xpeng Motors (XPEV) were strongly mixed after Monday’s opening, trying to bounce back from the steep losses on Friday.

Some of the top stocks to buy and watch, Endeavor Group (EDR), NXP Semiconductors (NXPI) and Pfizer (PFE) are in or near new buying areas. The recent weakness in the stock markets suggests that investors should develop watch lists and avoid making new purchases for the time being.

Microsoft and Tesla are stocks in the IBD rankings. NXP is an IBD SwingTrader share. Pfizer was highlighted in the Stocks Near A Buy Zone article last week. Endeavor is featured in last week’s IPO Leaders story.

Dow Jones Today: Bitcoin Plummets

After the market opened on Monday, the Dow Jones Industrial Average rose 1% as the rebound in oil prices led Chevron (CVX) to the top of the index. The S&P 500 rose 0.6%, while the high-tech Nasdaq composite lost 1%.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.2% on Monday, while the SPDR S&P 500 ETF (SPY) rose 0.4%.

Elsewhere, the 10-year Treasury yield was trading around 1.4% on Monday morning. It closed on Friday just above 1.34%.

Bitcoin traded at $ 47,261 early Monday before cutting some losses. The price of Bitcoin had plunged below $ 46,600 by early Saturday, from $ 56,800 on Friday. Proshares’ Bitcoin Strategy ETF (BITO) plunged more than 9% in Monday morning trading, hitting a new low. The Coinbase cryptocurrency exchange (COIN) slipped 4.5% on Monday.

Stock ETF strategy and how to invest

Market correction

The stock market posted losses again on Friday as the Nasdaq fell below a key support level at the 50-day moving average.

After the session, The Big Picture commented, “The S&P 500 and Nasdaq composite sold for the fourth time in the past six sessions, closing with losses of 0.8% and 1.9%. In doing so, the indices canceled out the promising action of the previous day and in some ways worsened the image of the stock market. “

The stock outlook was revised down on Friday, so it’s an important time to read The Big Picture from IBD.

Five Best Dow Jones Stocks To Watch Right Now

Dow Jones stocks to watch: Apple, Nike

At the end of Friday’s session, Apple shares remained broad above a buy point of 153.27 on a cup-and-handle basis, according to IBD MarketSmith’s chart analysis. The 5% buy area peaked at 160.93. Apple shares rose more than 2% on Monday. Prior to Monday’s opening, Keybanc began hedging with an overweight rating and price target of 191.

Retail leader Nike ignored Friday’s market weakness, advancing 0.1%. Nike shares remain around 2% below the 174.48 buy point of their cup base. Shares rose 0.1% on Monday.

Stocks to buy and watch: Endeavor, NXP, Pfizer

IPO leader and Ultimate Fighting Championship owner Endeavor Group continues to build a handle cup base with a buy point of 31.80, according to IBD MarketSmith’s chart analysis. The shares are about 8% of the new entry. The stock was flat on Monday.

The stock’s relative strength line is progressing solidly on the upside and is at its highest level since early October. The RS line measures the price performance of a stock relative to the overall market. A strengthening of the RS line during times of market weakness indicates leadership potential.

Chip and stock leader IBD SwingTrader NXP Semiconductors is trying to break above a 227.60 buy point in a handle-cup base, but closed below the entry despite Friday’s 2% rise. Shares fell nearly 1% on Monday.

Drug giant Pfizer is at the top of the buying range after a buy point of 51.96 in a cup base after Friday’s 2.3% gain. The 5% buy zone tops out at 54.56. Shares fell more than 1% on Monday.

Join the IBD experts as they analyze the major stocks in the current bullish stock market trend on IBD Live

Electric Vehicle Inventories: Li Auto, Xpeng, Lucid Motors, Rivian

Li Auto triggered the sell loss reduction rule 7% to 8% below the buy point of 34.93 from a base cup with handle after Friday’s 16% slip. Stocks rebounded around 2% on Monday and are attempting to stabilize around the 200-day long-term moving average.

Xpeng Motors triggered the round trip sell signal from a buy point of 48.08 during last week’s decline. Investors should sell the growth stock if it falls back near the buy point after making a gain of more than 10%. Try to sell before all winnings are wiped out. XPEV shares closed below their 50-day line on Friday and more than 8% below the entry of 48.08. The title fell nearly 3% on Monday.

Lucid Motors shares fell more than 17% on Monday after the company said the SEC requested documents related to an investigation into its blank check deal with Churchill Capital. LCID stock remains stretched beyond a buy point of 28.49 in a cup base with handle, but the huge gains are diminishing.

Rivian’s initial hot public offering was up around 2% on Monday morning, as it appears to rebound from Friday’s 5.5% drop.

RIVN shares closed at around 42% of their post-IPO highs on Friday. The downside is positive potential for investors who remain disciplined and wait for an IPO foundation to form before considering a buy. The recent weakness is the start of the formation of Rivian’s first base, but the sellers are currently in control.

Tesla shares

Tesla stock traded down more than 5% on Monday, threatening to extend a three-day losing streak and add to Friday’s 6.4% drop. Stocks are expected to open just above their 50 day line, a key support level.

The shares traded as high as 1,243.49 on November 4, but the stock closed on Friday around 18% of its 52 week high.

TSLA stocks remain well above a buy point of 764.55 in a handle cup, as well as earlier entries at 700.10 and 730. The chart also showed an alternate entry at 900.50. Tesla shares are likely forming a new base, but there is no new point of purchase yet.

Dow Jones Executives: Microsoft

Among Dow Jones stocks, software giant Microsoft edged down on Monday, in a bid to extend a four-day losing streak. The title is looking for much needed support around its 50 day line.

On October 18, Microsoft stock broke a flat base buy point of 305.94. The 5% buy area peaked at 321.24, so the title is expanded.

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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