The stock market today appeared less concerned about the Georgia Senate runoff elections that could still lead to a “blue wave” sweep of both houses in Congress and the White House. Oil surged on OPEC+ news and reports that Iran captured a South Korean oil tanker.
WTI crude oil futures thundered 4.7% higher on the Nymex to $49.87 a barrel. Natural gas futures pumped up 4.8%. Media outlets reported that the Saudi Arabia-led OPEC and Russia reached a deal to cut production of crude oil until at least March.
Meanwhile, select retail and consumer spending-related stocks showed bullish oomph, including a small number that made the Ready List updated for listeners of IBD Live.
They include Roku (ROKU), China e-commerce titan JD.com (JD), Five Below (FIVE) and Leaderboard stock Target (TGT).
Leaderboard offers hand-selected top CAN SLIM stocks that are trading near a proper entry point.
On a portfolio-weighted basis, Leaderboard stocks delivered a 2020 return of 58.4%, vs. 16.3% for the S&P 500, excluding dividends.
After the Nasdaq got smacked with a 1.5% drop in higher volume on Monday — marking a distribution day — the composite index rebounded decently with roughly an hour left in the regular session. The tech-dominated Nasdaq gained about 0.9% with minutes left in the session, slightly ahead of 0.6%-0.7% rises for the S&P 500 and Dow Jones Industrial Average.
At around 3:40 p.m. ET, the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) ETF rose 0.9%, taking back more than half of the prior day’s 1.4% slide.
Stock Market Today: Blue Chip Stocks To Watch
Within the Dow Jones, at least five of the 30 components rallied 2 points or more. They include integrated oil giant Chevron (CVX) and Wall Street firm Goldman Sachs (GS).
CVX is trying to build a bottoming base.
Notice how the stock has been trading on the north side of the 50-day moving average, a welcome change. Yet no clear buy point is in sight yet.
GS reached the 20% profit zone with a 2.8% lift higher Tuesday. Goldman shares had cleared a 225.34 buy point in a consolidation in November.
Taking gains often when the profit from a breakout point at 20% to 25% — or sometimes a bit higher — is very savvy portfolio management for equity traders.
The iShares Russell 2000 (IWM) ETF roared back above its short-term 10-day moving average. The exchange traded fund gained nearly 2% after pricking its key 21-day exponential moving average the prior session.
Please see the Monday Big Picture column for more insight into Monday’s key opening trading day of 2021.
U.S. Stock Market Today Overview
Last Update: 2:58 PM ET 1/5/2021
JD, as discussed on the Live show, is clearing a seven-week base that sits atop a prior cup with handle.
The new buy point is 92.87, a dime above the new base’s left-side lip.
JD shares boomed 9% higher in heavy trading amid reports that Jack Ma, the founder of JD.com rival Alibaba (BABA), is not apparently missing but laying low the past two months after harshly criticizing China’s state-owned banks for their lack of innovation and entrepreneurial spirit.
Alibaba is still struggling, despite gaining 5%.
The stock is still miles beneath its falling 50-day moving average, a sign of near-term stock weakness.
Elsewhere, Pinduoduo (PDD) jammed 11% higher and hit new highs.
The innovative mobile commerce firm in China grew its Q3 sales 99% to $2.09 billion vs. a year ago as earnings came in at a nickel per share vs. a net loss of 20 cents.
Pinduoduo is a 2020 new holding in Leaderboard.
Lam Research (LRCX), a big winner in the fourth quarter of 2020, has been trading tightly. That’s good, especially after its successful breakout past a 382.06 buy point in a good cup with handle.
Now, watch for a potential test of institutional buying support at the 10-week moving average.
This could offer LRCX holders a second chance to add to a winning position in the stock.
Semiconductor stocks may be rising in anticipation of bullish earnings results coming up for Micron Technology (MU) and Taiwan Semiconductor (TSM).
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