Dow futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market’s rally is reeling, with last week’s short-lived rebound fading fast.
The stock market rally is still there, but it is volatile and volatile. The major averages are testing key support areas, although the Nasdaq has held its 200-day line so far.
The Nasdaq has lagged behind the S&P 500 since last February, with that poor performance adding to the past two months.
An apple (AAPL) and Apple iPhone chip maker Qualcomm (QCOM) are two stocks that are growing relatively well, while Tesla (TSLA) China’s competitor Exping (XPEV) True on early entry. Meanwhile, DE stock is generated, while SM energy (SM) broke out on Friday.
Goldman Sachs (GS), Charles Schwab (SCHW) and signature bank (SBNY) before the market opens on Tuesday. GS stock fell below its 200-day moving average on Friday, although technically it is at a base. Schwab Stock Extension. SBNY stock is on the edge of the buying zone.
Xpeng stock is listed on the IBD 50 list. monastery (DE) IBD stock was on Friday.
The video included in this article discusses the volatile market movement as well as SM stocks, on semiconductors (ON) and Deere.
Dow jones futures contracts today
Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 and Nasdaq 100 futures contracts.
US markets will be closed on Monday in observance of the Martin Luther King Jr. holiday, although other exchanges around the world will be open.
Remember that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
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Corona virus news
The number of coronavirus cases worldwide has reached 323.86 million. The number of Covid-19 deaths has exceeded 5.54 million.
The number of coronavirus cases in the United States has reached 65.97 million, with the death toll exceeding 871 thousand.
As cases continue to reach new high levels worldwide, new infections appear to have peaked in the UK and New York, similar to the pattern in South Africa. The number of hospitalizations is increasing, but not as much as in previous waves of Covid.
stock market rise
The stock market rally traded up and down near key support levels last week, and eventually closed modestly to strongly bearish.
The Dow Jones Industrial Average fell 0.9% last week’s trading on the stock exchange. The S&P 500 and Nasdaq Composite were down 0.3%. Small-size company Russell 2000 shares fell 0.8%.
The 10-year Treasury yield rose one basis point to 1.77%, rebounding on Friday after a modest decline for three consecutive sessions. It hit a 23-month high of 1.81% on Tuesday. US crude oil futures rose more than 6% during the week to $83.82 a barrel.
Among the top ETFs, the Innovator IBD 50 ETF (FFTY) rose 1.3% last week, but after hitting a 52-week low on Monday. The Innovator IBD Breakout Opportunities ETF (BOUT) is up 1%. The iShares Expanded Tech-Software ETF (IGV) was down 1.6%. The VanEck Vectors Semiconductor ETF (SMH) stood out by 3.4%, with Qualcomm stock significantly behind.
The SPDR S&P Metals & Mining ETF (XME) is up 2% last week. Global X, an American infrastructure developer, fell 1.3%. The US Global Jets ETF (JETS) was up 0.1%. The SPDR S&P Homebuilders ETF (XHB) is down 1%. The Energy Select SPDR ETF (XLE) jumped 5.2% after rising 10.5% the previous week. The Financial Select SPDR ETF (XLF) is down about 1%, but many banks have had strong weeks. The SPDR Healthcare Sector Selection Fund (XLV) was down 0.2%.
Reflecting speculative story stocks, both the ARK Innovation ETF (ARKK) and the ARK Genomics ETF (ARKG) both fell nearly 5% to their lowest levels in 19 months. Tesla’s stock remains the number one ETF in ARK Invest’s ETF, but Cathy Wood has reduced its stake in TSLA in recent months as it ramped up investments in hard-hit, high-value growth.
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Apple stock rose 0.5% to 173.07 last week. On Monday, January 10, AAPL stock rebounded from its 10-week streak for the first time since it broke out in November. Investors can use a move above Thursday’s high at 176.62, a place to buy Apple shares from the 10-week streak bounce. This will also push the iPhone maker above the 10-day and 21-day streaks.
Apple doesn’t have a base per se, but it has strengthened heavily over the past several weeks, with its relative strength line holding near record highs. Investors may treat this latest trade as a chaotic flat base, with a buy point around 181-182.
QCOM stock rose 4.6% to 188.69 last week. Stocks generally found support at the 21-day line since mid-December, but on January 10 rebounded from the 50-day line. Qualcomm’s stock RS line hit a new high, growth stock particularly strong performance.
QCOM stock has been consolidating in a chaotic fashion since mid-November, although trading looks tighter on a weekly basis. Officially, Qualcomm stock posted a narrow three-week entry at 193.68, just above the broader consolidation. Investors may look to enter the Line Drawing a little lower than that. Alternatively, another test of the 50-day/10-week streak, which may correspond to 21 days, may be another way to get into Qualcomm.
Consolidation over the past two months after two big moves by QCOM stock. Shares tumbled in earnings, then rose two weeks later as CEO Cristiano Amon was touting a bright future for his company after Apple.
The wireless chip giant will likely see its iPhone business wind down in the coming years as Apple builds more chips in-house. But Qualcomm aims to expand its total addressable market from $100 billion today to nearly $700 billion over the next decade, connecting Internet devices from augmented reality glasses to cars.
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Xpeng rose 10% to 49.69 last week, rebounding from the 200-day streak and reclaiming the 50-day streak. Expired China EV Startup Stock New (NIO) and Lee Otto (LI) In monthly deliveries, it has an official buying point at 56.55 from the consolidation going back to Dec. But XPEV stock just crossed the trend line on Friday, providing an early entry not far from the 50-day line. Stocks also have 51.50 as short-term resistance.
As for Tesla stock, the electric vehicle giant rose 2.2% to 1,049.61 in a raging week, ending just below the 50-day streak but just above the 10-week streak. TSLA stock has a buy point of just over 1,200.
SM power reserve
SM stock jumped nearly 12% to 36.64 last week, making 35.82 cups with a buy point handle on Friday, according to MarketSmith analysis. However, the size was light. SM’s RS line approached highs, reflecting its strong performance against the S&P 500. But it’s a bit of a delay in the oil correction. How long can oil prices and energy stocks continue to rise?
Derry shares rose 0.2 percent to 379.56 last week. Stocks fell slightly on Friday, giving the new handle a less stressed look. The handle’s buy point is 386.65 at a base dating back to early September. But DE stock has been consolidating since last May or even March. After doubling profits in fiscal year 2021, analysts see solid growth for the agricultural equipment giant in 2022 and 2023.
Market Rise Analysis
The stock market rally bounce from Monday, January 17, hit lower resistance on Wednesday, with major indexes falling Thursday and Friday morning. But the Nasdaq, which crossed the 200-day line again on Friday, led a partial recovery.
The Dow tested the 50-day line on Friday, with the S&P 500 holding below that key level. The Russell 2000 cut its record low on Monday, threatening to break below the level of the year-long consolidation.
Major indicators are not far from their Jan. 10 lows. A close below those levels could end a market rally, which is already under pressure. On the plus side, after a fierce sell-off in the previous week, the major indicators have finally not given up much ground in this last week.
Still, a stock market rally could use a convincing win. But, like a team leading 3-0 or 3-1 in a top-seven streak, “winning” won’t solve the market’s problems. Besides bouncing from or back above the major moving averages, the major indicators need to recover Wednesday’s highs. For the Nasdaq, the 50-day line and the January 4th peak will be further tests.
The Nasdaq has been lagging behind the S&P 500 by 11 months. This is despite the huge costs like shares of Apple, Tesla and Microsoft (MSFT), nvidia (NVDA) and Google Original the alphabet (GOOGL), which at least until very recently all outperformed the benchmark. It is a reflection of how weak the average growth stock is. High value growth has been achieved, especially in the last two months, as FFTY, IGV and especially ARKK and ARKG show.
With the Fed’s growing optimism and Treasury yields rising, growth stocks may continue to struggle.
Energy stocks remain strong, along with most financials. But Friday c. B. Morgan Chase (JPM) is a reminder of the return of earnings season, adding to the suite of risks for individual stocks, sectors and the broader market.
200-day average: the last support line?
What are you doing now
Investors should be defensive. The major indicators are closer to a breakdown than a breakout. Growth and tech stocks aren’t working at the moment, except for Apple and some chip names like Qualcomm.
Don’t rush to jump into the next bounce in growth. After several head fakes, investors should wait for the real strength, not another dead cat bounce.
The energy and financial sectors continue to lead, along with fertilizers and some other periodic names. But don’t be too focused even here. A reversal in these areas wouldn’t be surprising, whether from core bonds, commodity prices, or the broader stock market dragging everything lower.
This is the time to build watch lists. Look for stocks that show strong relative strength and hold key support levels. A number of machinery and chemical and industrial stocks are being formed, including Deere. Keep reworking your lists. Some stocks like Home Depot (HD), It looked strong and steady a couple of weeks ago but is now declining. In the meantime, some other names, such as Xpeng and Deere, are showing some strength.
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