Dow Jones rose on election day; This ‘Republic Shares’ Earn; Bitcoin, Coinbase Dive

On the day of the American vote, the Dow Jones industrial average retreated from the highest levels. A number of so-called “Republican stocks” profited, even though Trump owned them SPAC Digital World Acquisition (DWAC) fell. Coinbase (COIN) and Riot Blockchain (RIOT), Bitcoin fell to June market lows after Binance struck a deal to buy cryptocurrency FTX.


A number of stocks tested buy points during a broad uptrend, including Albemarle (ALB), BJ Wholesale Club (BJ) and Fabrinet (FN).

Volume on both the Nasdaq and the New York Stock Exchange rose from the same time on Monday. This is positive in one day.

The yield on the benchmark 10-year Treasury note fell 9 basis points to 4.13%. West Texas Intermediate crude fell more than 2% to below $90 a barrel.

Nasdaq Pops, IBD 50 Lags

The Nasdaq rose 0.5%, as did the S&P 500.

S&P 500 sectors were mostly positive, with technology and healthcare the best performers. The only thing left behind was energy.

Small caps also gained, with the Russell 2000 up 0.6%.

The innovator IBD 50 ETF ( FFTY ), the bellwether for growth stocks, added just 0.4%.

Dow Jones Pops: Amgen, Boeing Shine

The Dow Jones Industrial Average was the best performer of the major averages as it rose nearly 1%. But he also refused some profits.

Amgen ( AMGN ) led the index, rising nearly 6%.

Boeing (BA) also shined, adding about 2%. Walgreen Boots Alliance (WBA) declined, down 1%.

‘Republic Shares’ Earnings

Research shows that the stock market tends to rise after midterm elections. Since 1950, the average one-year return on the S&P 500 has been about 15%.

With Republicans expected to take at least partial control of Congress, a number of stocks picked by Strategas for the GOP portfolio were gaining.

Defensive play Lockheed Martin (LMT) rose 1% and is currently trading in a buy zone above the 480.09 entry, according to MarketSmith analysis.

Johnson & Johnson (JNJ) rose to gain about 1%. It is approaching the cup entry with handle at 175.49.

Leaderboard stock Cheniere Energy (LNG) is also on the list and is up about 2% on the day. The natural gas play is trading just below the 178.72 buy point.

Donald Trump Stock Slides

Digital World Acquisition failed to merge with other Republican holdings. Donald Trump SPAC rose Monday on election speculation.

The future of the firm trying to take the former president’s Trump Media and Technology Group public remains up in the air. A shareholder vote on whether to approve an extension of the deadline to complete the merger has been postponed until November 22.

After initially failing to pass a vote in September, the SPAC’s sponsor, ARC Global Investments, contributed about $2.9 million to extend the merger deadline until Dec. 8, according to federal filings.

Currently, Trump Media and Technology Group’s flagship product is Truth Social, a conservative social media site that is a right-leaning alternative to Twitter.

DWAC shares fell nearly 3%. It is up 62% so far this month, but has lost about 45% for the year. Donald Trump’s stock is the bottom 19% of stocks by stock performance over the past 12 months.

Coinbase Stock, Bitcoin Rally After Move

The COIN fund and Bitcoin rose explosively before giving up their gains and more.

They struggled to recover from lows after it emerged that Binance had agreed to buy cryptocurrency exchange FTX.

Binance CEO Changpeng Zhao said in a tweet that they are coming to the company’s aid.

“This afternoon, FTX asked us for help. There is a significant liquidity crisis,” he said. “To protect users, we have signed a non-binding LOI that intends to fully acquire and help cover the liquidity crisis.”

It’s a remarkable reversal of fortunes for FTX, led by CEO Sam Bankman-Fried. It was valued at $32 billion by private investors at the beginning of 2022.

Binance is the world’s largest cryptocurrency exchange by 24-hour trading volume.

After turning positive for a short time, COIN shares have turned sharply and are down about 11% on the day. It continues to trade below all major moving averages. Shares are down nearly 80% since the start of the year.

Bitcoin also saw losses intensify after briefly breaking off intraday lows. It was trading just below $19,000, down about 4%.

Other cryptocurrencies have struggled. Grayscale Bitcoin Trust (GBTC) is down almost 12%, while Bitcoin mining game Riot Blockchain is down around 8%, despite its lowest level of the day.

ZeroHedge said in a tweet that the FTX liquidation hit the shares and sent them higher.

Outside the Dow Jones: 3 Stock Test Entries

Albemarle briefly crossed the 308.34 consolidation buy point before reversing. It also cleared an early entry of November 1 high of 287.98.

Overall performance is strong, with the stock boasting a perfect IBD Composite Rating of 99.

Based in Charlotte, NC, Albemarle is the world’s largest lithium producer and one of the largest suppliers of lithium for electric batteries. The company already supplies the essential metal to the EV giant Tesla (TSLA).

BJ’s Wholesale Club tested a 78.93 handle mug entry. The relative strength line hit a new high, a bullish sign.

Profitability is a key strength for retail. Big money has been buying the stock recently, with its Accumulation-Distribution Rating coming in at B+.

Fabrinet is sitting in a buy zone after clearing a cup-with-handle buy point at 118.15. It was working on strong gains.

Since the current stock market uptrend is still under pressure, buying stocks already carries additional risk.

Follow Michael Larkin on Twitter @IBD_MLarkin for further analysis of growth stocks.


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