What to do in a new stock market correction before the Fed meeting

Dow futures fell after the stock market rose on Monday ahead of the Federal Reserve’s two-day monetary policy meeting. Despite Monday’s gains, the stock market trend is still correcting after last week’s big market losses.


stock market today

On Monday, the Dow Jones Industrial Average advanced 0.6%, while the S&P 500 gained 0.7%. The technology-heavy Nasdaq Composite is up 0.8%. Small cap Russell 2000 also rose 0.8%.

within money exchange circulatingNasdaq 100 Invesco QQQ Trust Tracker (QQQ(Up 0.6%, SPDR S&P 500)spy) rose 0.8%.

US stock market overview today

index Code price win/loss % change
Dow Jones (0DJIA) 31019.82 +197.40 +0.64
Standard & Poor’s 500 (0S & P5) 3900.00 +26.67 +0.69
Nasdaq (0NDQC ) 11535.02 +86.62 +0.76
Contact 2000 (IWM) 180.52 +1.53 +0.85
defect 50 (fifty) 27.06 +0.10 +0.37
Last update: 4:28 PM ET 9/19/2022

This week’s key earnings reports come from costco (cost), Darden Restaurants (DRI), general mills (GIS), KB Home (KBH) And the linar (flexible).

Giant EV Tesla (TSLA) rose 1.9% on Monday. within Dow Jones LeadersAnd the apple (AAPL) rose by 2.5%, while Microsoft (MSFT) lost 0.1% in stock market today.

In light of the current market weakness, continental resources (CLR), double check (DV) And the Vertex Pharmaceuticals (VRTX) – as well as the shares of Dow Jones chevron (CVX) And the merck (Mrk) – Among the top stocks to watch. Keep in mind that the new stock market correction is a good reason for investors to be often, if not entirely, on the sidelines.

DoubleVerify is a file IBD Leaderboard stocks, but his position size shrank during last week’s losses. Tesla This week it appeared in the stock column near the buy zone.

Dow futures today: Treasury yields, oil prices

Ahead of Tuesday’s open, Dow Jones index futures are down 0.3% against fair value. S&P 500 futures lost 0.45% and Nasdaq 100 futures traded 0.6% below fair value. Remember to work overnight in Dow Jones futures contracts and elsewhere that does not necessarily translate into actual circulation in the next regular session Stock market session.

The 10-year Treasury yield rose to 3.49% on Monday, surpassing an 11-year high of 3.48% set on June 14. barrel.

Fed meeting kick-off

The Federal Reserve’s two-day meeting will begin on Tuesday, with a decision on the interest rate on Wednesday. Markets appear An 82% chance that the central bank will raise interest rates by 75 basis points and an 18% chance of a 100 basis point rate hike.

Investors will be looking for hints about the pace of future rate hikes, and how far the central bank will eventually rise.

What to do in a stock market correction

After heavy losses incurred last week, the International Development Bank downgraded the market trend from “uptrend under pressure” to “market in correction”. This means that investors have to be mostly cash, if not entirely.

To prepare for a new stock market rally, investors should wait for a follow-up day. When the market is in a correction, look for at least one major indicator to try to reach the bottom. On the first day the indicator closes higher counts as the first day of its upward attempt. (Monday is the first day of trying the pool). The action on day 2 and day 3 is irrelevant as long as the indicator does not reduce its lowest level. If this low is trimmed, the rally will be attempted and the market will need to try again.

On the fourth day and beyond, you were looking forward to the NASDAQ or S&P 500 rising sharply with higher trading volumes than the previous session. this Follow-up day. It gives investors the green light to start buying blue-chip stocks that crossed a previous correction buy points. You must keep your portfolio and mindset in sync with the movement of the stock market by gradually committing your capital to leading stocks.

While waiting for a new uptrend, build a watch list of potential market leaders with line relative force. The RS line measures the stock’s price performance against the S&P 500 index. If the stock is outperforming the broader market, the RS line tends to the upside. If the stock lags behind the broad market, the line will be pointing down.

Friday big picture column He commented, “Since moving away from the 200-day moving average, the Nasdaq has fallen below all of its major moving averages. It is now down about 28% so far in 2022.”

If you are new to IBD, consider taking a look at it stock trading system And the CAN SLIM Basics. He distinguishes chart patterns It is one key to investment guidance. IBD offers a wide range of Stock Growth ListsSuch as leaderboard And the SwingTrader.

Investors can also create watch lists, find companies near a profile buy pointor develop custom screens in IBD Market Smith.

Five Dow Jones stocks to watch right now

Dow Jones stocks to watch: Chevron, Merck

Chevron at Dow Jones is building a cup with a handle that has 166.93 buy points, according to IBD Market Smith Chart analysis, amid the strong performance of energy stocks so far this year. The stock rose 0.3% on Monday, finding much-needed support at the 50-day line.

CVX stock Shows a strong 97 out of a perfect 99 IBD compound classification, for every IBD stock check. Investors can use the IBD composite rating to easily gauge the quality of a stock’s fundamental and technical metrics.

Pharmaceutical giant Merck is also fighting a downward trend in the stock market. The stock is building a flat base that has 95.82 buy points. But MRK stock is stuck below the 50-day line. Merck shares lost 1.2 percent on Monday.

4 growth stocks to watch at Cursstock market correction

Top stocks to watch: Continental, DoubleVerify, Vertex

Continental Resources and the oil explorer are building a cup with a handle with a point-of-purchase of 72.80, according to IBD Market Smith Graph analysis. The Relative Strength Line reached its highest level recently last week but remained a little off from its 52-week high. CLR shares rose 0.6% on Monday.

IBD stock leaderboard DoubleVerify remains below the buy point at 28.07 at a bottom base despite Monday’s 0.55% rally. As the stock’s breakout attempt falters, it has found support around the 50-day line.

Vertex Pharmaceuticals is back below the 50-day line after Monday’s 1.6% loss. The stock has held up well during the ongoing market weakness, as evidenced by the RS line approaching new highs. There’s no new rule just yet, but the stock’s flexibility makes it a great idea to keep an eye on.

Join IBD experts as they analyze the leading stocks in the current stock market correction on IBD Live

Tesla Stock

Tesla stock It rose 1.9% on Monday, recovering from Friday’s slight loss. The stock is approaching the 314.74 buy point of the short base. In the meantime, keep an eye out for additional buying points if the stock is able to climb further to the right side of the larger consolidation process, which runs through January.

Up, the stock’s RS line is at its highest level since early April. Shares are down nearly 25% from their 52-week high.

Dow Jones Leaders: Apple and Microsoft

within Dow Jones stockApple shares rose 2.5% on Monday, ending a two-day losing streak and reclaiming part of last week’s losses. The stock closed last week at its lowest level since July 18.

Microsoft lost 0.1% on Monday, paring losses after hitting a new 52-week low. The software giant is about 30% from its 52-week high.

Make sure to follow Scott Lehtonen on Twitter at Tweet embed Learn more about developing stocks and the Dow Jones Industrial Average.

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