Dow Jones futures fell along with S&P 500 futures and Nasdaq futures on Sunday evening.
X
Equity market gains cleared some major resistances last week. Major indices rose solidly, reacting bullishly to uneven earnings reports and economic data. Leading stocks performed well, with breakouts and buy points continuing to work.
Since the follow-through date of January 6, the market has shown a strong uptrend. In fact, according to one prominent growth investor, the uptrend suggests it could be a “money-making” or “life-changing” rally.
Therefore, investors should take advantage of this opportunity. But do so with caution. Market gains near critical levels, another big week for news.
apple (AAPL), parent company of Google alphabet (GOOGL), Amazon.co.jp (AMZN), Parent of Facebook meta platform (META) are all tapped, as are hundreds of other companies. Apple stock and these other tech giants are recovering strongly, but there’s a lot of repair work to do. will be
The Fed will hold a policy meeting this week and another rate hike is scheduled for February 1st. The big question is when Fed Chairman Jerome Powell and his colleagues will call for a halt to further rate hikes.
Tesla (TSLA) surged in mixed earnings as CEO Elon Musk was bullish about the future. TSLA shares have soared from their bear market low on Jan. 6, but have yet to offer a buy point.
Meanwhile, Tesla’s archival BYD (BYDDF), snowflake (snow), Shift4Payments (4) and Etsy (ETSY) are four aggressive stocks in or near the potential buy area. However, please handle with care.
ETSY stocks are on SwingTrader. FOUR strains are at IBD 50.
dow jones futures today
Dow Jones futures fell 0.15% against fair value. S&P 500 futures fell 0.2%. Nasdaq 100 futures fell 0.15%.
Crude oil futures rose slightly to above $80 a barrel.
Note that overnight trading on Dow futures or elsewhere does not necessarily lead to actual trading at the next regular stock market session.
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stock market rally
Equity market gains have seen strong gains across the board over the past week.
The Dow Jones Industrial Average rose 1.8% in last week’s stock market trading. The S&P 500 index rose his 2.5%. The Nasdaq Composite rose 4.3%. Small-cap Russell 2000 is up 2.4% on him.
US crude futures fell 2.4% on the week to $79.68 a barrel, reversing Friday’s recent intraday high of $82.48.
The 10-year Treasury yield rose 3 basis points to 3.52%.
The U.S. Federal Reserve (Fed) hiked rates by just a quarter of a percentage point on February 1, after raising rates by 0.5 percentage points in December and four consecutive hikes of 75 basis points so far. A rate hike is expected. The market overwhelmingly expects a 1/4 point rate hike to a 4.75% to 5% range in late March. But investors are now betting that policymakers will remain stable.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) rose 2.5% last week. The iShares Expanded Tech-Software Sector ETF (IGV) rose 4.5%. The VanEck Vectores Semiconductor ETF (SMH) rose 5.2% to a five-month high.
Reflecting more speculative story stocks, the ARK Innovations ETF (ARKK) jumped 10.7% last week and the ARK Genomics ETF (ARKG) jumped 5%. Tesla shares are a major holding across Ark Invest ETFs, and Kathy Wood’s Ark has been piling up shares in recent months. Ark also owns a small stake in his BYD.
The SPDR S&P Metal Mining ETF (XME) rose 2.1% last week to an eight-month high. The Global X US Infrastructure Development ETF (PAVE) rose 3.3%. The US Global Jets ETF (JETS) was up 0.3%. The SPDR S&P Homebuilders ETF (XHB) rose 3.3%. The Energy Select SPDR ETF (XLE) rose 0.8%, marking its seventh straight week of gains. The Financial Select SPDR ETF (XLF) was up 2.55%. The Healthcare Select Sector SPDR Fund (XLV) fell 0.8%, its fifth consecutive week of declines.
5 Best Chinese Stocks to Watch Right Now
Mega cap earnings
Meta platform earnings are paid out on Wednesday nights. META stock rose for his fifth straight week, rising 8.9% to put him just below the 200-day line.
Apple’s earnings are due Thursday night. It’s likely to be a rough quarter, affected by iPhone production delays.
Google’s earnings also lagged on Thursday. GOOGL’s stock price fended off a new antitrust lawsuit by the Justice Department, and he ultimately rose 1.4%. But 200 days is still a long way off.
Amazon’s earnings are also expected after Thursday’s closing bell. AMZN shares tested his 50-day line support on Wednesday morning, registering a weekly gain of 5.1%. The stock is still well below the 200-day line.
tesla stock
Tesla shares surged 33% last week, well above the 50-day line. From its bear market low of 101.84 on Jan. 6, TSLA shares are up 75%.
On Wednesday night, Tesla’s earnings edged slightly above analysts’ low estimates, but earnings were broadly flat. But Elon Musk was bullish on demand after the price cut, predicting production of up to 2 million cars, and the stock soared.
Will the demand for the resurrected Tesla be sustained? It may be weeks before we have a clear image. By Tuesday morning, investors should have access to weekly Chinese EV registration data for Tesla and other automakers. However, Tesla Shanghai was closed last week for the Chinese New Year holiday, which may have also affected demand. Later in the week, the investor will get his January sales data from BYD. Nio (NIO), lee auto (LI) and XPeng (XPEV) but not Tesla.
The city of Shanghai will reintroduce 10,000 yuan ($1,500) to residents who scrap or give away their cars in exchange for pure electric vehicles. From February 1st to the end of the year. Shanghai is a big market for Tesla. There are signs that the Chinese government will introduce, renew or expand EV subsidies at the national or regional level.
Meanwhile, the SEC is currently investigating Musk’s role in shaping Tesla’s self-driving claims, Bloomberg reported on Saturday. Sources say this is part of an ongoing investigation into the company’s statements about his Autopilot. This follows new evidence that a Tesla video claiming to show fully self-driving cars in 2016 was in fact a fraud, and that Musk was directly overseeing the effort.
Tesla vs. BYD: EV giants vie for the crown, but which one is the better buy?
Stocks close to buy point
BYD shares surged 9.3% last week, hitting a five-month high. The Chinese EV and battery giant regained his 200-day line and finished the week 5.5% above its key level. The stock is building a very deep cup-based right side, but investors may buy his BYDDF stock as a positive entry from his 200-day line. Investors can also wait to see if BYD shares take the wheel amid a long consolidation or even form a short base. This week his January sales data is lagging. BYD may also release preliminary fourth-quarter figures soon, which should again mark his triple-digit earnings growth.
FOUR shares found support at the 21-day line and rebounded up 0.4% to 63.69 this week. That’s a buy point of 65.89 and he has formed a tight pattern for three weeks. Investors can also view the recent moratorium as a handle to a consolidation he dates back to April 2022. FOUR’s share price has more than doubled since he hit bottom in July.
SNOW’s stock surged 10% last week, crossing the 200-day line on Friday for the first time in almost a year. Investors can use this as a very aggressive entry. Snowflake’s revenue, although slowing, remains strong. Data analytics software companies continue to report GAAP losses, but are now profitable on an adjusted basis.
Etsy Stock has the most traditional entries. The stock rose 4.5% last week to 137.80 and found support at the 10-day line. On the daily chart, ETSY shares are near the 142.63 buy point with a shallow cup base forming above the 200-day line. MarketSmith’s analysis shows that on a weekly basis, the handle cup entry at 137.01 is in the buy range. Etsy’s earnings won’t come out until his late February, but Amazon’s results could sway handicraft e-commerce companies.
Market rally analysis
The stock market rally has ticked many boxes over the past week.
The major indexes tested tested support mid-week and passed with flying colors. By Friday’s close, the Nasdaq Composite had broken above his 200-day moving average and his December high. The Russell 2000 also slightly surpassed his late-2022 peak on Friday. The S&P 500 is now well above the 200-day line and about to break the December high. The Dow Jones, which is currently lagging behind, is also doing well.
The index faded to Friday’s close, tempering its daily gains. But that was after he hit six straight near-day highs. A strong closing price is the hallmark of a bull market.
The action came amid a barrage of often weak or lackluster earnings and guidance, along with various economic data. But it’s not the news, it’s the reaction to the news.
Meanwhile, major stocks continue to perform well. Tesla is skyrocketing, and in this column he focuses on aggressive stocks such as Etsy and his SNOW stock, which are broad strides. Energy, steel makers, housing groups, retailers, financials, auto parts, travel and trucking all showed strength across sectors and individual stocks.
Investors are getting more bullish because the economic outlook is brighter and clearer. China and Europe are boosting global economic growth as inflation falls. The Federal Reserve is almost done raising rates.
Still, earnings season remains tough. Apple stock, Google, Amazon and Meta have no buy points, but their report and hundreds of others could still disrupt markets.The Fed may be more hawkish than expected. . Friday’s big economic report, including the January jobs report, is also important.
A market rally for ‘life changers’?
Still, a strong start to the market rally in 2023 is a very bullish signal.
“The Lifecycle Trade” co-author Eric Krull noted on Friday’s IBD Live that the Nasdaq Composite was up 8.9% from the end of the follow-through date on January 6 to Thursday’s close. This his 15-day profit is unusually high. Krul said the “money maker” rally typically sees him up 5.5% over a similar period. For “life-changing” gatherings, the average advancement rate is about 8%.
Time the Market with IBD’s ETF Market Strategy
what to do now
We don’t want life to pass by or a life-changing uptrend, so we need to capitalize on the current market uptrend. It shows a true change of character from a normal uptrend.
So tackle your watchlist and look for stocks that are currently ready or viable. Note the closing date.
It remains important to add exposure gradually, not to buy expansions, and not to focus on any particular holding or sector.
Read The Big Picture daily to understand the market direction and key stocks and sectors.
Follow Ed Carson on Twitter. @IBD_E Carson Stock market updates and more.
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