The Dow Jones Industrial Average rallied over 300 points Monday to hit a record high after President Trump signed the coronavirus relief bill. Apple stock is approaching a new buy point, while Tesla is again nearing record highs. The price of Bitcoin briefly surged above $28,000.
Tesla (TSLA) looked to extend a win streak to three sessions, advancing 2% in early trade.
Apple, Generac, Microsoft and Tesla are all IBD Leaderboard stocks. Epam was Friday’s IBD Stock Of The Day.
Dow Jones Today: Trump Signs Bill
On Monday, the Dow Jones Industrial Average rose 1%, while the S&P 500 traded up 0.9%. The tech-heavy Nasdaq composite rallied 0.5% in morning trade after paring gains.
Late Sunday, President Donald Trump signed the $900 billion relief deal and $1.4 trillion omnibus spending package. Trump said, in a statement, that the Senate would “start the process for a vote that increases checks to $2,000.” The House already plans to vote on a measure to increase the direct payment.
U.S. Stock Market Today Overview
Last Update: 10:26 AM ET 12/28/2020
Amid the coronavirus stock market rally, the tech-heavy Nasdaq is up 42.7% for the year through Thursday’s close. The S&P 500 is up 14.6%, while the DJIA is up 5.8% year to date.
Bitcoin Soars Above $28,000
Over the holiday weekend, the price of Bitcoin soared more than $4,700 to reach as high as $28,352 on Sunday before paring gains.
The price of Bitcoin traded around $27,200 early Monday, according to Coindesk.
According to the Worldometer data tracker, the cumulative number of confirmed coronavirus cases in the U.S. topped 19.5 million on Monday. Total virus-related deaths rose past 341,000.
The cumulative total of worldwide Covid-19 cases confirmed since the start of the outbreak topped 81.2 million Monday, with more than 1.77 million virus-related deaths.
Coronavirus Stock Market Rally
November was a key month for the stock market. IBD’s The Big Picture flagged a new uptrend following the market’s bullish follow-through day on Nov. 4. Meanwhile, December sees the stock market at record highs.
Thursday’s Big Picture commented, “The year proves that amid a once-in-a-century pandemic and extreme polarization in politics, the stock market can keep an upward bias. Knowing this gives you an edge. Here are five ways to stay ahead next year.”
Investors should continue to use the stock market’s strength to buy breakouts. Be patient and wait for powerful breakouts instead of chasing extended stocks. If the new breakouts work, then add more exposure. But if breakouts start to fail, then you can back away.
In particular, focus on stocks with strong relative strength. Find them by using the relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. If the stock is outperforming the broader market, then the RS line angles upward. If a stock is performing worse than the broad market, then the line will point lower.
Stocks To Watch: IBD Long-Term Leaders
Stocks to watch include IBD Long-Term Leaders, companies with stable earnings growth and price performance. Veeva Systems (VEEV) is the latest addition to the list, with a bullish rebound back above its key 10-week moving average line. Shares are approaching a 314.09 buy point in a cup base.
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Dow Jones Stocks To Watch: Apple
Apple stock is approaching a cup base’s 138.08 buy point, according to MarketSmith chart analysis. Shares rallied 2.5% Monday morning, and are about 2% away from the new buy point.
Apple shares are extended above an aggressive entry at 125.49.
The blue chip giant is the No. 1-performing Dow Jones stock for 2020, with a 79.8% advance through Thursday.
Stocks In Or Near Buy Zones: Generac, Intuitive Surgical, Epam
IBD Leaderboard stock Generac is again breaking out above a 234.65 buy point in a flat base, according to IBD MarketSmith chart analysis. Shares rallied 1.5% in morning trade.
Per Leaderboard commentary, “The stock consolidated in an orderly fashion for more than five weeks, resulting in the new base. It is a third-stage pattern, so it may not be as successful as earlier bases.”
Intuitive Surgical remains in the 5% buy zone above a 792.64 entry in a flat base following a Dec. 22 breakout. The 5% buy zone goes up to 832.27. Shares rose 0.75% Monday morning.
Thursday’s IBD Stock Of The Day, Epam Systems, is right at a 357.08 buy point in a flat base. Shares edged higher Monday morning and are just below the buy point.
According to IBD Stock Checkup, EPAM stock shows a 95 out of a perfect 99 IBD Composite Rating. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths.
IBD Leaderboard stock Tesla rallied 2% Monday morning, on pace to extend a win streak to three sessions. On Dec. 18, Tesla stock hit a record high at 695 and is about 4% off that all-time high.
Tesla CEO Elon Musk said, in a leaked email to employees, the company has a chance to reach the “historic milestone” of 500,000 deliveries in 2020, but must go “all out” in the last few days of the year.
On Nov. 18, shares broke out above a 466 buy point in a cup with handle and are more than 40% from the buy point.
Dow Jones Leaders: Microsoft
Among the top Dow Jones stocks, software giant Microsoft moved up 0.3% Monday, as shares continue to move further above their key 50-day line. Shares are approaching a 228.22 buy point.
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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