Investors expect a dismal start to the week as global stock and equity futures spit red ink. As a result, concerns over China’s real estate may have spooked the markets for good, with giant Evergrande slipping.
Concerns about contagion from China are accumulating for a number of reasons to worry this market: “The persistence of the delta variant, increased inflation, blockages in the supply chain and rising raw material prices combine to form a toxic cocktail that makes optimism fade says Richard Hunter, Head of Markets at Interactive Investor.
Investors have been promised anything but roses for September, so be prepared for the 5% to 10% decline over the next few months that Wall Street analysts have repeatedly warned about.
Does that mean you should have a dip shopping list on hand? Check out these growth name ideas from ours Call of the day, by Larry Tentarelli, editor and editor of the Blue Chip Daily Trend Report.
“Each of these stocks is in an uptrend, with higher highs and higher lows across all major moving averages. While general market direction can affect all stocks, these top 4 high growth companies are showing signs of outperforming, ”writes Tentarelli.
The tech-related companies are all 20% or more below their all-time highs but were able to make weekly gains last week, offsetting the SPY’s losses
– Two major exchange traded funds that track the S&P 500
and the Nasdaq-100
Indexes – writes Tentarelli.
First up is the vacation rental group Airbnb
which is 24.7% below its all-time high in February, but still ended on Friday at a 4-month weekly closing high.
He notes that price momentum is improving for AirBNB, which is trading above the 20, 50 and 100 day moving averages. Airbnb shares are up 15% from their public debut in early December 2020.
The next three picks are in the cloud software area, starting with Palantir
which closed on Friday with a 7-month weekly closing high but is still 36.2% below its all-time highs from January. Palantir mostly trades four major daily moving averages, Tentarelli said, adding that “the 20-dma has recently crossed above the 50, 100 and 200-dma, suggesting very strong short-term price momentum”.
also ended on Friday with a 7-month weekly closing high but remains 21.8% below its all-time highs of December 2020. It’s mostly about four major moving averages and recently had two bullish crosses.
The last one is snowflake
which hit a 10-month weekly closing high on Friday, the highest of the year so far but is still 24.7% away from December 2020 highs. Snow is trading over 20, 50, 100 and 200 DMAs and has made bullish 20-day / 200-day and 50-day / 200-day crosses in the past 5 weeks, he said.
Evergrande clouds the mood and Yellen warns
Real estate stocks in China slumped with Evergrande
14% down. The real estate giant faces two crucial bond payment deadlines this week Fears of failure grow.
China’s regulators met with Wall Street officials last week to defend their crackdown on technology. say sources. Meanwhile, young fans of China’s version of the video app TikTok are leading the way Screen time limits.
Treasury Secretary Janet Yellen urged Congress to raise or suspend the country’s debt ceiling or risk “widespread economic disaster” Column in the Wall Street Journal. The Treasury Department could default on its bills by October if a split Senate fails to reach an agreement on raising the debt ceiling.
and German partner BioNTech said a phase 2/3 study of their COVID-19 vaccine in children ages 5-11 showed it to be safe, effective and a “Robust” neutralizing antibody response.
Investors will be on the lookout for it any rejuvenating conversation by a two-day Federal Reserve Open Market Committee beginning Tuesday. A bunch of other global central banks will also meet.
slipped 3.3% – China and other markets were closed for holidays – on these Evergrande worries. Iron ore prices fell again as China tightened industrial restrictions in some provinces. Other raw materials like oil
Cryptocurrencies are also having a hard time, led by losses for ethers
A volcano on one of the Canary Islands of Spain broke out on Sunday, spitting lava. Property was destroyed and thousands had to flee.
Also in Spain more than 25,000 students and other night owls hosted a mega party at a Madrid university on Friday, with the last night owls leaving on Saturday around 7 a.m.
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