Dow Jones Futures: What To Do As Bear Market Intensifies; Tesla Rival Leads 5


Dow Jones futures will open on Sunday evening, along with S&P 500 futures and Nasdaq futures. The Bitcoin price undercut $20,000 on Saturday, as cryptocurrency woes continued.




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The bear market intensified this past week, amid growing concerns that the Federal Reserve will be forced to drive the economy into a recession in order to rein in inflation.

With the major indexes plunging toward their pre-Covid peaks, investors should be on the sidelines. Don’t get excited by one-day rebounds, such as Friday’s tech-led advance. Instead, prepare to take advantage of the next sustained uptrend.

Not many stocks are holding up, but here are five that are doing a reasonable job: Tesla (TSLA) rival BYD (BYDDF), Vertex Pharmaceuticals (VRTX), fertilizer and lithium play SQM (SQM), Eli Lilly (LLY) and Enphase Energy (ENPH).

All have relative strength lines at or near highs. The RS line, the blue line in the charts provided, tracks a stock’s performance vs. the S&P 500 index.

BYD stock is near a traditional buy point. SQM stock is finding support at its 50-day line after round-tripping big gains. ENPH stock regained that key level on Friday. Vertex stock and Eli Lilly aren’t far below their 50-day lines.

LLY stock is on IBD Leaderboard. Eli Lilly and SQM stock are on the IBD 50. BYD was Friday’s IBD Stock Of The Day.

The video embedded in this article discussed the weekly market action and analyzed BYD, SQM and Enphase stock.

Bitcoin Plunges

Bitcoin broke below the psychological key $20,000 level on Saturday, a fresh 18-month low. The biggest cryptocurrency fell as low as $18,739.50, just below its December 2017’s peak. Bitcoin is currently trading above $19,000, far below the November 2021 peak of $68,990.90.

Other cryptocurrencies are falling as much, or more.

Investors have fled risky assets generally amid inflation and recession fears. In recent weeks, several crypto lenders have halted withdrawals.

Dow Jones Futures Today

Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.

U.S. markets will be closed Monday in observance of the Juneteenth holiday, but other exchanges around the world will be open. Dow futures will trade normally on Monday.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.


Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live


Stock Market

The stock market had big weekly losses once again, with the major indexes tumbling to their worst levels in more than a year.

The Dow Jones Industrial Average sank 4.8% in last week’s stock market trading. The S&P 500 index tumbled 5.8%. The Nasdaq composite retreated 4.8%. The small-cap Russell 2000 plunged 7.5%.

The 10-year Treasury yield rose 8 basis points to 3.24%. On Tuesday, the 10-year yield shot up to 3.48%, an 11-year high.

U.S. crude oil futures plunged more than 9% to $109.56 a barrel last week, snapping a seven-week losing streak. Gasoline futures also fell sharply. Natural gas prices tumbled.

ETFs

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) dived just over 12% last week, while the…



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