Dow Jones Futures: The Big Risk In This Coronavirus Stock Market Rally

Dow Jones futures are not yet trading Sunday, along with S&P 500 futures and Nasdaq futures. The coronavirus stock market rally had another strong week, with breakouts rapidly expanding, including Amazon.com (AMZN), Netflix (NFLX) and Microsoft (MSFT). Apple (AAPL), Alibaba (BABA), Advanced Micro Devices (AMD),  Shopify (SHOP) and Cadence Design Systems (CDNS) are notable names near buy points.




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This is a time to take positions in leading stocks in the coronavirus market rally. While the coronavirus crisis and an uncertain recovery are major concerns, being overly cautious amid this positive stock market trend carries serious risks as well.

Amazon stock and Netflix stock are extended from buy zones, with Netflix earnings late Tuesday. But Microsoft stock is still in range. Shopify stock and AMD stock are near buy points after clearing aggressive entries. Alibaba stock is eyeing its own early buy point. Cadence Design stock almost hit a buy point Friday, with earnings due Monday. Apple stock could be forming a handle after retaking a key support level.

AMZN stock, NFLX stock, MSFT stock and AMD stock are all part of IBD Leaderboard. Microsoft stock and BABA stock are on SwingTrader. Netflix stock, Microsoft stock, AMD stock are all on the IBD 50 list.

Microsoft, Alibaba and Cadence Design stock are all IBD Long-Term Leaders.

All of these names, including Apple stock, all boast strong relative strength lines at or near highs. That reflects their outperformance vs. the S&P 500 index.

Dow Jones Futures Today

Dow Jones futures won’t begin trading until 6 p.m. ET. As the coronavirus stock market rally has strengthened, the extreme volatility in Dow Jones futures has faded. Some big overnight gains or losses in Dow futures still occur. Volatility could easily return in the current market environment, with earnings season likely to swing Dow Jones futures and especially individual stocks.

Remember that overnight action in Dow futures and elsewhere doesn’t…

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