Dow Jones Futures Rise as Bitcoin Tops $22,000

Dow Jones futures climbed ahead of Monday’s opening bell, looking to kick-start the week with more gains. The price of Bitcoin rose on Monday, reaching $22,000 for the first time since August 19.

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Head of electric vehicles Tesla ( TSLA ) rose 0.5% Monday. Among the Dow Jones industrials, tech titans apple (AAPL) and Microsoft (MSFT) were both higher before today’s market opening.

In the current market volatility, Arista Networks (A WEB), DoubleVerify (DV), Clean storage (PSTG) and Restaurant brands (QSR) — as well as the Dow Jones stock Chevron (CVX) — is among the best stocks to buy and watch. Remember that the market’s increased volatility is a good reason for investors to be more defensive, even if last week’s rally was constructive.

DoubleVerify is a new IBD Leaderboard stock, while Pure Storage is an IBD SwingTrader stock. Apple shares and restaurant brands were featured in last week’s columns Stocks Near a Buy Zone.

Dow Jones Today: Treasury Yields, Oil Prices, Bitcoin

Before the opening bell on Monday, Dow Jones futures were up 0.4% above their real value, while S&P 500 futures were up 0.6%. Nasdaq 100 futures traded up 0.7% in morning trading. Keep in mind that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular session.

Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.7%, and the SPDR S&P 500 ETF (SPY) rose 0.6% in early trade.

The 10-year government yield ticked down to 3.28% early Monday. Last week, the 10-year government yield reached its highest closing level since 15 June.

US oil prices appeared to extend last week’s late rally, climbing nearly 1% on Monday morning. West Texas Intermediate futures traded back above $87 a barrel.

The price of Bitcoin rose more than 3% in the past 24 hours, according to CoinDesk. Bitcoin was trading around $22,400 in morning trading.

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Stock market rally under pressure

On Friday, the Dow Jones Industrial Average rose 1.2%, while the S&P 500 closed 1.5% higher. The Nasdaq composite rose 2.1 percent.

Friday’s The Big Picture column commented, “The bullish session may have been enough to resume the uptrend, but volume has been weak behind the Nasdaq’s three-session winning streak, and the number of distribution days remains high for the Nasdaq and the S&P 500. That’s even after that the September 6 distribution day was canceled due to a 5% increase from that day’s end.”

The best way to find emerging leadership in the stock market is by using the relative strength line. The RS line measures a share’s price development vs. S&P 500. If the stock outperforms the broader market, the RS line angles upward. If a stock lags the broad market, the line will point lower.

The RS line is plotted on all IBD and MarketSmith charts. In addition, the IBD Stock Screener includes a list of top-rated stocks with relative strength lines at new highs. MarketSmith also has the “RS Blue Line Dot” list, which looks for RS lines with new highs. (Starting Monday, IBD is giving MarketSmith free access for an entire week.)

If you are new to IBD, consider taking a look at the stock trading system and CAN SLIM basics. Recognizing chart patterns is a key to investment guidelines. IBD offers a wide variety of growth stock lists, such as Leaderboard and SwingTrader.

Investors can also create watch lists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.

Five Dow Jones stocks to watch now

Dow Jones stocks to watch: Chevron

Dow Jones Chevron rose 2.6% on Friday, continuing to rally behind support at its key 50-day line. The stock added a handle to a cup base, moving the right buy point to 166.93 — according to IBD MarketSmith chart analysis — amid a strong performance by energy stocks so far this year. The share fell 0.5 percent early Monday.

CVX stock scores a strong 97 out of a perfect 99 IBD Composite Rating, according to IBD Stock Checkup. Investors can use the IBD Composite Rating to easily measure the quality of a stock’s fundamental and technical metrics.

4 top growth stocks to buy and watch nowra stock market rally

Top stocks to watch: Arista, Costco, DoubleVerify, Restaurant Brands

Arista Networks has added a handle to a double-bottom base, placing the correct entry at 132.97, according to IBD MarketSmith chart analysis. Arista’s relative strength line is near highs, as the stock has retook its 200-day and 21-day lines. ANET shares rose 0.3% early Monday.

IBD Leaderboard stock DoubleVerify breaks out above a 28.07 buy point in a bottom base. Shares are in the 5% buy zone going up to 29.47, although it is being extended from moving averages. DV shares rose 0.5% on Monday morning. The company specializes in platforms to help advertisers better understand the effectiveness of ad spend and campaigns.

IBD SwingTrader stock Pure Storage is nearing a 31.62 buy point in a cup with handle. Meanwhile, an early entry is also in play after the stock moved above a downtrend within that handle. The shares rose 0.5 percent on Monday.

Restaurant Brands rose 0.5% on Friday, finishing just under a cup with the handle’s 61.19 buy point. Restaurant Brands franchises and operates 29,000 Burger King and Tim Hortons restaurants globally. A major upgrade of Burger King locations is planned. The stock rose early Monday.

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

Tesla shares

Tesla shares rose 3.6% on Friday, extending a winning streak to four sessions and continuing its retreat from its 50-day line. Shares in the electric car giant rose a further 0.5% on Monday morning.

Tesla stock found resistance at its 200-day line in recent months, but is now back above that level. Shares remain about 28% off their 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among the Dow Jones stocks, Apple shares rose 1.9% on Friday, ending the week just below the 50-day mark. The stock is about 11% away from a cup-handled 176.25 buy point. Shares rose 1.2% on Monday, signaling a move back above the 50-day mark but slightly below the 200-day mark.

Microsoft rose 2.3% on Friday, rising for the third day in a row. The software giant is holding strongly below its 50- and 200-day lines. Shares are about 24% off their 52-week high. The share rose 0.3 percent early Monday.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

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