Dow Jones Futures: Coronavirus Stock Market Rally Enters Earnings Chaos As Apple, Tesla Lead 7 Stocks Near Buy Points

Dow Jones futures were not yet trading Sunday, along with S&P 500 futures and Nasdaq futures. The Dow Jones and other major indexes lost ground last week, but it was a quietly bullish period for the coronavirus stock market rally. Apple stock carved out a handle buy point last week. On Friday, Tesla stock, AMD stock, Microsoft stock, Alibaba stock, Nvidia stock and Adobe stock completed new handles.




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Stock Market Trek Into Darkness

It’s a mammoth week for earnings. Earnings season is always a confusing time, but this one is especially murky. So many companies and industries shut down the bulk of their operations due to the coronavirus. How can companies or analysts be expected to predict what earnings will be like in the second quarter, let alone for the full year?

Apple (AAPL), Microsoft (MSFT), AMD (AMD) and Tesla (TSLA) all are on deck, with AMD earnings likely influencing Nvidia stock. That makes buying any breakouts for those stocks ahead of that big news especially dicey. Nvidia (NVDA)reports May 21. Alibaba (BABA) will likely report in mid-May while Adobe (ADBE) doesn’t release results until June).

Get A Handle On Top Stocks

Handles offer a buying opportunity, typically at a lower price. They serve to shake out weak holders just before a breakout, making such moves more likely to succeed.

A proper handle must be at least five days long on a daily chart or one week long on a weekly chart, but they can last several weeks. A valid handle forms in the upper half of a base. It should be flat to downward-sloping to encourage weak holders to get out. Ideally, the selling should be modest in price and volume, signaling little institutional selling. Sometimes they are wilder, especially in volatile markets.

Apple stock, AMD stock, Tesla stock, Nvidia stock, Alibaba stock and Adobe stock have all formed cup-with-handle bases. Microsoft stock has a double-bottom base with a handle.

AMD stock, Nvidia stock, Adobe stock and Microsoft stocks are all on IBD…

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