Apple, Microsoft, United Health and 3M led another pounding of blue chip issues as the Dow Jones industrial average, down 396 points on Monday, sank another 551 points (2.2%) on Tuesday to expand its two-day loss to as much as 1,055 points intraday, or 4.1%. The Nasdaq composite dropped 1.7%, the Nasdaq 100 slightly more than that.
Some decent increases in earnings and sales for numerous big box retailers, including Best Buy (BBY) (fiscal Q3 earnings up 19% to 93 cents a share) and Ross Stores (ROST) (EPS up 26%), failed to cheer up Wall Street.
However, a handful of longtime market leaders, including HealthEquity (HQY), Square (SQ), Fortinet (FTNT), Atlassian (TEAM), Veeva Systems (VEEV), ServiceNow (NOW) and Palo Alto Networks (PANW), either gained ground or cut their losses sharply. Some of these names are also trying to stay near their long-term 200-day moving averages.
Before The Dow Jones Bottoms, Prepare For A New Uptrend This Way
At this point, it's vital to wait and watch for evidence that these companies or others find a bottom and begin to form the right side of a new base. The minimum length of a cup with handle, for instance, is seven weeks. Yet a well-formed cup with handle, double bottom, flat base or base on base can take several months — or even up to a year — to finish.
When the market flashes a signal of a new confirmed uptrend, then breakouts from such chart patterns give individual investors a timely entry point to maximize reward and minimize risk.
Crude Oil Futures Burned Again
Meanwhile, crude oil suffered more sharp losses. West Texas Intermediate crude prices at one point fell more than 7.7% to a session low of $52.77 a barrel amid growing concern that trade tariffs between the U.S. and China, plus uncertainty over the Brexit deal, may depress energy demand.
WTI crude futures have now fallen more than 30% beneath a year-to-date high of $76.90.
Watch for fresh weekly U.S. inventory data from the Energy Information Administration coming out on Wednesday, as noted in IBD's Econoday economic calendar.......MUCH MORE
So there I am, glancing at NVIDIA, biding my time like the panther waiting to pounce, $135, come on now, just a little bit closer and What. The. Hell?
Okay, maybe not really waiting to pounce, maybe waiting for something to land within a few inches.
So I don't over-exert myself:
From StockCharts:
...The Semiconductor stocks were trying to lead to the upside in Tuesday's big down day. That's a short term bullish sign. Six semi stocks were in the top 22 from the S&P 500.
Considering how low in the hole they were to start the day, that is a big improvement.
Looking at NVDA, it was down 55% off the highs, but came back and at the time of publishing was above yesterdays close. That's a pretty big rebound....MORE
Then the panther fell out of the tree and sees:
Nvidia shares turn positive after Citron buys stockNo major market information there, just Andrew Left mucking about.
The stock that will signal a turn in sentiment is Salesforce which led the whole Software is Eating the World on the upmove and then, as the Russians say, The World Eats the SaaS. Or something.
