Dow Jones futures will open on Sunday night, along with the S&P 500 and Nasdaq futures. The stock market rally has become a confirmed upward trend, as the main indices broke long weekly series of losses.
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Nasdaq’s next day on Thursday was followed by further strong gains on Friday. Investors should participate in this new market rally, but not jump.
DLTR shares, Atkore (ATKR), Delta Air Lines (DAL), Onsemi (ON) and Microsoft (MSFT) are worth watching. Dollar Tree (DLTR), Atkore, Onsemi and DAL are probably starting to get started, although they are definitely aggressive. Investors may want to wait for suitable points to buy.
Microsoft shares are not eligible. It is very far from the action. But these are megacap stocks that don’t look awful. In contrast, Tesla (TSLA) and Nvidia (NVDA) had bigger rebounds than Microsoft last week. But both had fallen by more than 50% from record levels.
ATKR shares are on the IBD Leaderboard and IBD 50 watch list. MSFT shares are on the IBD Long-Term Leaders. ON stocks were Friday’s IBD Stock Of The Day.
The video embedded in this article highlighted a key marketing week and analyzed the shares of DAL, Onsemi and Regeneron Pharmaceuticals (REGN).
Dow Jones futures today
Dow Jones futures open at 18:00 ET on Sunday, along with S&P 500 and Nasdaq 100 futures.
Dow futures will trade normally on Sunday night and Monday. But US stock exchanges will close on Monday in memory of Remembrance Day. Other exchanges around the world will be open.
Remember that the action at night in Dow futures and elsewhere does not necessarily turn into actual trading in the next regular session of the stock market.
Join the IBD experts as they analyze the actions that can be taken in the stock market rally on IBD Live
Stock market rally
The stock market rally began volatile, with the Nasdaq hitting a 52-week low at Tuesday’s close. But the main indexes recovered strongly during the rest of the week, providing strong weekly gains.
The Dow Jones Industrial Average jumped 6.2% in stock trading last week. The S&P 500 jumped 6.6%. The Nasdaq index rose 6.8%. Russell 2000 with a small capitalization grew by 6.55%.
Yields on 10-year government bonds fell four basis points to 2.74%, just above the 50-day line.
US crude futures rose to $ 115.07 a barrel last week.
ETFs
Growth funds and the sector reflect broad market progress.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) jumped 9% last week, while the Innovator IBD Breakout Opportunities ETF (BOUT) rose 4.9%. The ETF of the iShares Expanded Tech-Software Sector ETF (IGV) rose 6.1%, with MSFT shares accounting for a major stake. The VanEck Vectors Semiconductor ETF (SMH) xx%. Nvidia shares are a major SMH component with ON Holding also in the ETF.
The SPDR S&P Metals & Mining ETF (XME) rose nearly 10% last week. The Global X US Infrastructure Development ETF (PAVE) jumped 7.2%. The US Global Jets ETF (JETS) rose 7%, with Delta shares accounting for a major stake. The SPDR S&P Homebuilders ETF (XHB) jumped 6.9%. The Energy Select SPDR ETF (XLE) rose 8.6% to new highs, while the Financial Select SPDR ETF (XLF) rose 8.3%. SPDR Fund for Selected Healthcare Sector (XLV) grew by 3.3%
Reflecting the more speculative stock history, the ARK Innovation ETF (ARKK) jumped 7.1% last week and the ARK Genomics ETF (ARKG) a relatively modest 3%. Tesla shares are holding № 1 in Ark Invest ETFs. Cathk Wood of Ark has also started buying shares in NVDA again.
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Stocks near buying points
Shares of Dollar Tree jumped 29% last week to 165, more than a 20% drop from the previous week. Shares of DLTR were sold off after Walmart (WMT) and Target (TGT) missed EPS views and headed lower. But the chain of dollar stores easily surpassed the views and gave a solid perspective. If you put a giant thumb in the middle of the DLTR stock chart, it seems almost applicable, trading above the 50-day line and the trend line. But investors probably have to wait for the shares to settle. Maybe Friday’s peak at 166.35 could serve as a new zone of resistance. The relative strength of the line is already at its peak, according to MarketSmith’s analysis.
Shares of ATKR fell above 112.34 points to buy from a double-bottom base after gaining in early May, but then collapsed back with a sell-off in the market. Shares fell below their 50-day and 200-day lines on Tuesday, but recovered for the rest of the week, ending up 5.4% to 107.72 for the week. Atkore shares are likely to break a short downtrend, offering early entry. But the three-day rally reached a slight volume, while the downward trend was sharp. Investors may want to wait for a new base as part of a larger consolidation, with 115.88 being a possible buying point.
Shares of DAL rose last week, rising 9.3% to 42.23, with all these gains and more coming in the last three days. The next day, Thursday, shares of Delta jumped above the 50-day and 200-day lines, while breaking the downward trend line from the short-term peak of April 21 at 46.27. Even with Friday’s profit, investors can take an early position here. But 46.37 may serve as a better buying point, with the 45-46 zone acting as a resistance several times in the last year. United Airlines (UAL), Marriott International (MAR) and some other travel campaigns made similar moves last week.
Shares of travel companies rose after JetBlue (JBLU) and Southwest Airlines (LUV) gave lofty earnings forecasts for the second quarter, following optimistic guidance from United earlier this month. However, Delta has said it will cut flights this summer due to staffing problems.
Shares of Onsemi recovered their 200-day and 50-day lines late last week, clearing up some short-term resistance. Investors who wanted to bet on a name for growth could buy ON shares here. The official buying point is 71.35. The RS line is already at a new peak. In terms of fundamentals, Onsemi boasts five consecutive quarters of triple-digit profit growth.
Microsoft shares
Shares of Microsoft rose 8.2% to 273.24 last week, after reaching an 11-month low the previous week. The shares of MSFT are still below their 50-day and especially the 50-day. Strong movement over the 200-day line may offer entry as a long-term leader. But Microsoft shares are far from their peak on November 22 of 349.67. Its RS line is at quite high levels.
But, with the possible exception of Apple (AAPL), Microsoft shares look better than other megacap names. Microsoft’s earnings forecasts are stronger than Apple’s. In addition, its operations are less exposed to supply chain problems and a weakening consumer than Apple may be.
If high-end technologies are going to work, Microsoft is likely to get involved.
Tesla shares
Shares of Tesla hit a 10-month low of 620.37 on Tuesday, just over 50% below its November peak of 1,243.49. But shares recovered sharply, closing the week with 14.4% profit to 759.63. These advances come with more volume after a large number of large losses in huge trading in the last few weeks. Still, Tesla’s stock chart needs a lot of overhaul, with a lot of resistance overhead. The 50-day line crosses again below the 200-day line.
Tesla Rival seizes the EV Crown, takes the Model 3 and flashes a buy signal
Nvidia Stock
Nvidia surpassed the views, but headed to the lowest levels on Tuesday night, just after setting a 52-week low closing level. But shares still rose over the next three days, ending with a 12.7% weekly rise to 188.11. But after falling 55% since late November, Nvidia shares have significant work to do.
Market rally analysis
The stock market rally is in a confirmed upward trend, with the subsequent purchase on Friday providing some encouragement.
Nasdaq organized the next day on Thursday, with Nasdaq’s volume rising since Wednesday, despite being below average. Nasdaq had another big price increase in higher volume on Friday.
The S&P 500 and Dow Jones made solid price gains on Thursday and Friday, but the NYSE fell in both sessions. The tracking days of the S&P 500 require a higher NYSE volume than in the previous session. However, given the many big caps of Nasdaq in the S&P 500, including shares of Apple, Microsoft, Meta Platforms (FB), parent of Google Alphabet (GOOGL), Amazon.com (AMZN), shares of Tesla and Nvidia , probably the S&P 500 made an FTD based on total volume.
But in the end, the market doesn’t need a Dow or S&P 500 next day at this point. An index confirming a rally attempt is all that is required.
The Dow Jones broke an eight-week series of losses, while the S&P 500 and Nasdaq ended seven weeks of decline – all decisively. It’s nice to see a rally that appears on a weekly schedule.
All major indexes moved above their 21-day moving averages. They are all above their peaks on May 17, when they followed up before falling the next day. The indices are still below their 50-day and 200-day lines, but with other points of resistance along the way.
So while the market rally did not disintegrate immediately, it is unclear whether it will be a tradable rally or something longer lasting.
One problem is that there are not many stocks in a good position. This is not surprising, given the sharp decline in the market since late March.
Energy reserves continue to be leading, although many have been extended again. Lithium games are hot again, but now they look extended. Some names of drugs and biotechnology still seem strong. Maybe some retailers, such as DLTR and Ulta Beauty (ULTA), will settle. Tourist games such as DAL shares are recovering, but have organized a number of short two-way trips in the last few months. ON stocks can be adjusted, but most growth names are still in the off position.
Market Time with IBD’s ETF Marketing Strategy
What should we do now
Investors should take advantage of the current market rally, perhaps enter the pool a little more after diving next Thursday.
If you don’t see individual stocks that you are confident in, a broad-based ETF may offer some exposure.
Keep your portfolio mostly in cash. And consider taking …
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