Dow Hits New High; BeOne Medicines, Goldman Sachs, Interactive Brokers In Focus

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0:25Good afternoon, everyone, and welcome to Stock Market Today for Wednesday, November 12th. My name is Ken Shreve. On today's show, well, we're going to talk about a stock market that was pretty much a mirror image of Tuesday, Another day where blue chips outperformed. Another big gain for the Dow Jones today. Nice day for Goldman Sachs. We'll talk about a breakout for Goldman. Looks like a nice move in after-hours trading for Cisco Systems. So lots to talk about. But before we get into all of that, let me bring on our news editor, Ed Carson, who, as usual, has got three stocks to watch. Good afternoon, Ed.

1:06Good afternoon. I want to take a look at B1 Medicines, Goldman Sachs, and Interactive Brokers. B1 Medicines, Goldman Sachs, and Interactive Brokers. All right. Sounds good. Well, let's go ahead and take a look at the market here. And again, it really was kind of a mirror image, Ed, of yesterday. Let's start by taking a look at the Dow Jones first because we had a 500-plus point gain for the Dow Jones index yesterday. Another solid gain today. First close above 48 ,000 for the blue chip index today. Pretty strong performance, up almost 7 tenths of a percent. Look at that four-day gain for the blue chip index here.

1:57We'll run through the rest of the market, which really didn't move a whole lot here. NASDAQ composite looks like we're going to get a very mild distribution day here for the NASDAQ, even though three closes in a row pretty tightly above that 21-day moving average. NASDAQ composite only down close to almost three-tenths of a percent. S &P 500 was mostly flat, maybe edged just a little bit higher. Not much movement here, but it did manage to extend its winning streak to four sessions and just a slight move lower for the Russell 2000. You can see it gave back an early gain as it clings to support here at the 50-day moving average.

2:47So, Ed, blue chips in control again today. And I know we're going to talk about Goldman in a moment. But, you know, it's not like there's been this complete rotation out of AI stocks. We're seeing some select AI names under selling pressure, but clearly, you know, a little bit of a rotation going on in the market here. Yeah, and that's something investors need to recognize. It's like, yeah, it's good to know the general market direction, of course, but you need to know what sectors and stocks are leading. I mean, you were great if you were buying Oklo and Nebius and all these speculative, you know, super high octane names, say, in September.

3:28But in the last several weeks, those have not performed as well. And so you just have to recognize it. Biotechs, drugs. Today, the Dow was – yesterday, it was drugs that led the Dow. Today, it was financials as well as, say, Cisco, which we'll talk about more, and also UnitedHealth. So there was some breadth to it. Nice action here. Nice right off the 50-day line. You know, this is lagged traditionally, but having a nice move here and definitely one that investors should be paying attention to. Also seeing some encouraging price action in the NASDAQ composite, too. You know, earlier this morning on IBD Live, just talking with, you know, our chief market strategist, Mike Webster, again, just talking about that bullish support Friday at the 50-day moving average.

4:19And we do have the lows here holding above that 21-day moving average. Pretty tight action here. This is compelling action for the NASDAQ composite. So, you know, pretty compelling price action here for the NASDAQ composite as well. Yeah, I think for the NASDAQ and the S &P, they look fairly similar. The fact that they're holding up just fine, given that some of these frothy names have come off, yeah, that's sort of encouraging. And it's just something, again, that there's rotation underneath the S &P rose a little bit. But again, they're both not moving a whole lot, holding the bulk of their gains from intraday Friday and Monday.

5:01Looking pretty good. Yep, no doubt about it. Now, we've been talking about some relative weakness in some leading growth stocks. Talk about FFTY, which lagged in the market yesterday. Let's see, FFTY took a hit yesterday. It was down more than 2%. It extended losses again today down another 1%. So you can see FFTY below its 50-day moving average. ARKK, which is another proxy for growth stocks, that is also below its 50-day moving average. So it really is, again, it's not like growth stocks are selling off en masse. It's just that there are certain areas of the growth stock market that are getting hit here.

5:51So you need to recognize sell signals when you're seeing them. and you have to be nimble in this market. Absolutely. Yeah, yeah. All right, well, let's also take a look here at the breadth in the market because advancers and decliners on the NASDAQ today, they were pretty much split right down the middle. I think decliners basically had a small edge over advancers basically split down the middle though. Here's QQEW. This is the equal weighted version of the NASDAQ 100 holding above the 50-day moving average here. Breadth was just barely negative, I think, on the S &P 500 as well. Pretty much split right down the middle here.

6:41Here's RSP extending its winning streak to four sessions. Had the bond market that was closed yesterday, still not getting any economic data due to the government shutdown. We do have a House vote scheduled for tonight, I believe, at 7 p.m. Eastern time. It is expected to pass and that the shutdown is expected to end. A big drop in that, relatively large drop in that 10-year treasury yield back below the 50-day moving average down to around 4.06%. Semiconductor stocks, thanks to AMD, that analyst day yesterday, Ed, SMH, nice day of outperformance, again, up 1.3%. And AMD, again, pretty bullish things to say about AI.

7:35That had a really nice gain today, up 9%. Yeah, and a lot of other chips didn't do a whole lot, but that's fine. But AMD was an interesting day-two reaction because there was plenty of time to react to AMD yesterday. But the market decided after the analysts came back, said, no, this was really good. So, you know, it was definitely a positive reaction after a night's sleep. And then we mentioned the outperformance of financial stocks, KBWB, which holds a lot of money center banks, tried to break out over the 80 level. Got turned away a little bit. You can see that resistance level, that round number of 80.

8:19Got turned away just a little bit. Tried to break out over that recent high here of 80.03. Tried to break out, got turned away. XLF, another very liquid popular financial ETF, did move above its 50-day moving average. That closed up near its high, broke out of a little downtrend today. So financials definitely seeing some money flow here. And then XLV, we mentioned just the tremendous run this has made. The initial buy here was on Monday, big move on Tuesday, extending gains today. Maybe a defensive trade, but that is where the money is flowing, no doubt about it. So staying in the healthcare space, why don't we take a look at a big breakout today that we took advantage for the leaderboard model portfolio.

9:15And let's take a look at B1 Medicines, ticker ONC, on the NASDAQ. High-priced stock here closed at$377.47 here. Harvard Business School Executive Education creates powerful connections for leaders from around the world. Their programs strengthen organizations and individuals by deepening relationships and fostering new ones. participants leave with lifelong friends new potential business partners and a powerful globe-spanning network of fellow change makers learn more at hbs.me slash breakthrough that's hbs.me slash breakthrough um this is a big company with a market cap of nearly 42 billion but a good good example of a technical breakout here do you want to look at the daily or the weekly week.

10:09Yeah, the weekly is where both of them is fine. The relative strength line hit a new high. It's like the best in about two years. So you get that blue dot. Yeah, there were strong earnings last week. It sort of popped up, pulled back. And I think if you look at a daily, you can see how that went. Yesterday, it was like, I can imagine some people wanting to get in there, but hadn't quite gotten above the short-term highs. But today, maybe you could have gotten early, but definitely with the breakout. And this one had an opportunity. Now it's extended. Let's be clear. But there was all day. If you look intraday, this one had opportunities.

10:40You didn't have to buy it right at the beginning of the day to get this name. It definitely just kept on building. But strong growth. And, you know, this was also stock of the day. Today was 50 stock yesterday. I think it was added to leaderboard. Showing a lot of strength here. Yeah, no doubt about it. They have two main drugs, Brukinsa, which treats certain types of blood cancers, and then another drug that helps basically the blood or the body's immune cells recognize and basically fight tumors. So this is an oncology firm. You can see that earnings and revenue are very, very impressive in recent quarters here.

11:30The company, after losing a lot of money in recent years, you can see, expected to turn its first annual profit this year and profit expected to double in 2026 at 612 a share. And again, nice breakout from a shallow base here today. So we'll see if we can get some follow through tomorrow. And then let's also take a look at Goldman Sachs in the Dow. Big reason why the Dow outperformed today. This was a pretty nice looking breakout for the big money center here. Goldman Sachs, ticker GS. Yeah, really strong here. I mean, I think banks are often an economic proxy and it just sort of feel like, OK, the shutdown is out of the way or at least it's about out of the way.

12:18It basically was right at short term highs yesterday. You probably could have bought it yesterday or right around there, but definitely a strong breakout. And there's a lot of big banks are doing well. You showed that ETF, but there's a lot of banks that flash buy signals either breaking out or breaking trend lines, et cetera. So this one has one among the better earnings growth and earnings growth outlooks as well. It's not going to blow up people out, but it's a solid performer. And it just this is definitely an area of the market is doing very well right now. Yeah. Also, J.P. Morgan didn't move as powerfully as Goldman today, but J.P.

12:56Morgan also tracked in the Dow. Rallied 1.5%, maybe a little more sluggish breakout here, trying to break out over the 3.18 level. Closed at 3.20, but not as powerful a move as J.P. Morgan, but still in the early stages of breaking out here. So JPMorgan Chase and Goldman looking pretty good in the Dow here. And then staying in the financial sector, take a look at interactive brokers, IBKR. Recent breakout over a 6807 buy point right here. Breakout kind of stalled, hit that high of 7335, came down, found support at its 50-day moving average. What are you seeing in interactive brokers here, Ed? Yeah, this is acting well.

13:46It's, you know, it's not as strong this year as Robinhood, but Robinhood's struggling a little bit. Schwab actually splashed a buy signal today, but that one's just a little bit of a laggard relative to interactive brokers. This was just below a new buy point, 7335. That's also a flat base. That's a flat base on a weekly chart, so it's just there. You know, it just needs a little bit more strength. that's still pretty close to the 50-day line. I suppose somebody could have bought off the 50-day, 10-week line on Friday, but there's a lot of stocks you could have done something like that with. You know, just the RS line is at a new high here.

14:21And it just seems like one of the solid performance. You look at that solid growth that's been going on with this name. And again, it just seems like a lot of brokerages and banks doing well. This is an area of the market that's doing well, has done well. so there's a lot to like about the up-down ratio. It's interesting, the accumulation distribution rating is a D+. There was a huge down week several weeks ago. Maybe that's hitting it because the up-down volume ratio is a 1.4. It hasn't been any tremendous volume weeks, but the volume has tended to be higher than the few down weeks we've had.

14:59So just a little bit of mix there, but I think this is definitely one. just needs a little more strength and it would be actionable. Yeah, yeah. Well, you mentioned IBKR in relation or in comparison to Charles Schwab, which is in a decent setup itself, but we saw that relative strength rating well above 80 for IBKR. Charles Schwab lagging a little bit with an RS rating of 67. Relative strength line still well off highs here, but still in a nice long sideways consolidation. We'll see if Schwab can try to break out over the 100 level. But IBKR, you can see it's just been trending a lot better than Schwab in recent months.

15:42Doesn't mean that Schwab won't try to break out here. So good one for the watch list. It's near the top of a pretty shallow base here. So Schwab, another name to watch in the group here. So, okay, that'll do it for today. Ed, as usual, appreciate your insight. Thank you very much. All right. That'll do it for today, folks. Just a heads up that Justin is recording his podcast today, and he's got one of his best guests, in my view, Joe Fami. So that is going to drop tomorrow, as far as I know. So be sure to check that out. Rachel Fox is going to be hosting IBD Live tomorrow morning at 920 a.m. Eastern Time.

16:39And she'll have her normal Thursday crew in tow. And then Friday, we're going to be welcoming back to the show hedge fund manager and longtime IBD friend Jim Ropel. very popular IBD Live guest. He's going to bring his enthusiasm and knowledge to the show and looking forward to having him. So if you haven't checked out IBD Live yet, just go to investors.com forward slash IBD Live. Ed and Alexis will be back here tomorrow for the Stock Market Today video. And we appreciate you watching. Have a great afternoon, everybody. Thank you.

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