The major market averages ended the first trading session of 2018 near their highs, logging strong gains — a great start following impressive 2017 performances.
The tech-heavy Nasdaq led the way with a 1.5% advance Tuesday, hitting a fresh record high. The S&P 500 also reached a new high, rising 0.8%, while the Dow Jones industrial average followed up with a 0.4% gain.
Meanwhile, Bitcoin reversed from early losses, rising 11% to just-under $15,000 — according to Coindesk — amid reports that Peter Thiel’s venture capital fund has a big Bitcoin holding.
Among the Dow Jones industrial components, Walt Disney (DIS) posted big gains, rising 4% after being upgraded at Macquarie Research. Shares have reclaimed a 110.93 double-bottom entry after a short-lived breakout on Dec. 4.
Elsewhere in the Dow, Apple (AAPL) rallied 1.8% to reclaim its 50-day line. Shares remain about 2% below a 176.34 flat-base buy point.
FANG stocks were all higher in the stock market today, as three of them set up new flat bases.
Netflix (NFLX) is building a flat base with a 204.48 buy point. The video streamer got a boost Tuesday after positive analyst commentary at Loop Capital and an upgrade at Macquarie Research. The stock ended the day about 2% away from the entry after a near-5% advance.
After a breakout above a previous flat-base entry on Oct. 17 failed to produce a meaningful gain, Facebook (FB) has sketched a flat base with a new buy point at 184.35. Shares rose 2.8% Tuesday.
Finally, Amazon.com (AMZN) is nearing a 1,213.51 entry, moving up 1.7% in Tuesday’s session. Last week, the company reported strong holiday sales and its Alexa-enabled devices were some of the season’s top-selling products. Midday Tuesday, the company said it shipped more than 5 billion items with its Prime delivery service in 2017.
Leaderboard member Splunk (SPLK) broke out past an 84.98 flat-base buy point, trading over 4% higher. Volume came in above average. The 5% buy range tops out at 89.23. Bullishly, the stock’s relative strength line — the blue line painted on every IBD daily and weekly chart — is approaching a new high as well.
Inside the IBD 50, Alibaba (BABA) jumped over 6%, as Chinese stocks took the lead among growth stocks. The e-commerce behemoth moved back above its 50-day line for the first time since Nov. 29.
Other top-performing Chinese leaders include China Lodging (HTHT) — which broke out on Friday and moved out of the 5% buy range today — and Autohome (ATHM). Shares of Autohome surged almost 11% to break out above a 65.67 buy point. Shares were extended.
On the downside, Floor & Decor (FND) declined over 5% to end up just below its 46.34 cup-with-handle entry. Shares broke out on Dec. 27 with volume that was over 200% above average — well above the 40%-50% standard increase in turnover.
Elsewhere in the IBD 50, Arista Networks (ANET) fell 2%, but remains above its 50-day line. The cloud networking software maker is nearing the completion of a potential base, but is one week shy of a cup-shaped formation.[“Source-investors”]