Buy the dip shopping? Four growth stocks that are bucking a down market

Investors were promised anything but roses for September, so they should be well prepared for the 5% to 10% drop in the next few months that Wall Street analysts keep warning about.

Does that mean one should have a dip shopping list handy? Check out these growth names ideas from our call of the day, from Larry Tentarelli, editor and publisher of the Blue Chip Daily Trend Report.

“Each of these stocks is in an uptrend of higher highs and higher lows, over all key moving averages. While general market direction can have an impact on all stocks, these 4 high growth leaders are showing signs of outperformance,” Tentarelli writes.

The tech-related companies are all 20% or more below all-time highs yet managed weekly gains last week, bucking losses for the SPY SPY, -0.97% and QQQ QQQ, -1.18% — two main exchange-traded funds that track the S&P 500 SPX, -0.91% and the Nasdaq-100 NDX, -1.18% indexes — writes Tentarelli.

First up is vacation rentals group Airbnb ABNB, -0.93%, which is down 24.7% from its all-time highs reached in February, but still ended Friday at a four-month weekly closing high.

He notes improving price momentum for AirBNB, which has been 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 space, starting with Palantir PLTR, +0.28%, which closed Friday at a 7-month weekly closing high, but remains 36.2% off its all-time highs from January. Palantir is trading above all four key daily moving averages, said Tentarelli, adding that “the 20-dma recently crossed above the 50, 100 and 200-dma, indicating very strong near-term price momentum,”

Unity Software U, +1.67% also finished at a 7-month weekly closing high on Friday, but remains 21.8% off its December 2020 all-time highs. It’s trading above all four key moving averages, and recently had two bullish crosses.

Last one is Snowflake SNOW, -0.22%, which settled a 10-month weekly closing high on Friday, its highest of the year so far, but is still 24.7% off December 2020 highs. Snow is trading above 20,50,100 and 200 DMAs and made bullish 20 day/200 day and 50 day/200 day crosses over the past 5 weeks, he said.

Evergrande sours the mood and Yellen warns

Property shares tumbled in China, with Evergrande 3333, -10.24% down 14%. The property giant faces two crucial bond payment deadlines this week as default fears grow.

China regulators met with Wall Street representatives last week to defend their tech sector crackdown, say sources. Meanwhile, young fans of China’s version of video app TikTok are facing screen time limits.

Treasury Secretary Janet Yellen urged Congress to raise or suspend the nation’s debt ceiling or risk “widespread economic catastrophe,” in a Wall Street Journal op-ed column. The Treasury could default on its bills by October if a split Senate can’t reach a deal to raise the debt limit.

Pfizer PFE, -1.30% and German partner BioNTech said a Phase 2/3 trial of their COVID-19 vaccine in children aged 5 to 11, showed it was safe and effective and produced a “robust” neutralizing antibody response.

Investors will be on the lookout for any tapering talk from a two-day Federal Open Market Committee that begins Tuesday. A bunch of other global central banks will meet too.

Netflix NFLX, +0.49% and Apple AAPL, -1.83% were big winners at Sunday’s Emmy awards with “Ted Lasso,” and “The Crown”. Not big winners? Actors of color when it came to performance awards.

The markets

Stock futures YM00, -1.96% ES00, -1.78% NQ00, -1.72% are deep in the red, with European stocks SXXP, -2.47% also struggling as Hong Kong’s Hang Seng HSI, -3.30% slid 3.3% — China and other markets were closed for holidays — on those Evergrande worries. Iron ore prices sank again as China stepped up restrictions on industrial activity in some provinces. Other commodities such as oil CL00, -2.47%, copper HGU21, -1.93%, and palladium PLV21, -1.72% also fell.

Cryptocurrencies are also having a tough time, led by losses for ether ETHUSD, -10.33%.

Random reads

A volcano on one of Spain’s Canary Islands erupted Sunday, sending lava spewing. Properties have been destroyed and thousands have had to flee.

Also in Spain, more than 25,000 students and other revelers held a megaparty at a Madrid university on Friday, with the last revelers leaving around 7 a.m. Saturday.

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