May 11, 2021

George Cafe Journal

The Power of Success

Dow Jones Slides; Apple Stock Retakes Key Benchmark; Cruise Stocks Buoyed

The Dow Jones Industrial Average retreated amid a broad stock market pullback. Microsoft (MSFT) moved higher in a buy zone as Apple (AAPL) retook a key technical benchmark.




X



Meanwhile, cruise stocks Carnival (CCL), Norwegian Cruise Line (NCLH) and Royal Caribbean Cruises (RCL) pared gains amid signs of pent-up demand. One sailed closer to a potential buy point.

Perficient (PRFT) managed to stage a breakout, though it was struggling to stay in buy zone.

Nasdaq, S&P 500 Struggle

The tech-heavy Nasdaq was the biggest loser as it gave up around 0.2%. Amazon.com (AMZN) fared best with a gain of almost 2%. Pinduoduo (PDD) was the biggest laggard as it gave up almost 7%.

The S&P 500 was basically flat. L Brands (LB) stood out here, gaining almost 5% to a new high. Albemarle (ALB) and Enphase Energy (ENPH) were among the laggards, with both giving up more than 4%.

The S&P sectors were mixed, with slightly more losers than winners. Energy, communication services and technology were leading, with materials the biggest laggard.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 33417.14 -13.10 -0.04
S&P 500 (0S&P5) 4074.39 +0.45 +0.01
Nasdaq (0NDQC ) 13678.26 -20.12 -0.15
Russell 2000 (IWM) 221.82 -2.49 -1.11
IBD 50 (FFTY) 44.69 -0.41 -0.91
Last Update: 1:14 PM ET 4/7/2021

Small caps were forced lower, with the Russell 2000 dipping around 1%.

Growth stocks were also mauled by the bears, with the Innovator IBD 50 ETF (FFTY) slipping 0.9%.

Apple Stock Retakes Benchmark As Dow Jones Lags

The Dow Jones Industrial Average lost ground on its record high, though it rallied from lows to sit less than 0.1% lower.

Apple stock was among the bright spots. It retook its 50-day moving average as it posted a gain of around 0.8%. Retaking this key technical benchmark is a positive sign, but the stock has a lot of ground still to recover.

On Feb. 18, Apple stock triggered the 7%-8% loss-cutting sell rule when it fell more than 7% below a 138.89 buy point from a cup with handle base.

Microsoft was anther noteworthy top performing Dow Jones stock. It gained almost 1% and remained in a buy zone that tops out at 258.64. Microsoft stock broke out of a flat base on Monday, according to MarketSmith analysis. The ideal buy point here was 246.23.


Tech Titans Lead As Rally Pauses; Tesla Retreats To Key Support


Cruise Stocks Sail Higher; One Nears Buy Point

Cruise stocks were boosted after Carnival gave a business update that showed improved bookings and cash balances. The company said Q1 bookings were up 90% compared to the quarter ending in November. In addition, customer deposits held steady at $2.2 billion.

It was further good news, after the Centers for Disease Control and Prevention issued guidance last week that said fully vaccinated people can travel at low risk to themselves.

Carnival stock briefly moved into profit-taking zone, and was up around 1.3%. It is extended after breaking out of a cup base. The ideal buy point was 24.48.

Norwegian Cruise Line also touched a profit-taking zone, before slipping back. It was up around 1.2%. It is extended from a double-bottom base with an ideal entry point of 27.06.

Royal Caribbean Cruises is close to forming a cup base. It is sailing near a possible buy point of 99.34. The stock has a poor IBD Composite Rating of 46, however.

IT Stock Passes Buy

Perficient rose 3% to clear a 63.05 buy point of a cup with handle in heavy volume. The stock is on course to post a gain for the fifth session in a row. But shares erased most of the day’s gains and were back at the buy point.

The St. Louis-based IT services provider holds a near-perfect Composite Rating of 97. This has helped it reach the summit of the IBD’s tech services industry group.