Dow Jones Futures: What to Do After an Upward Move; Hamas attack on Israel may disturb markets

Dow Jones futures will open on Sunday evening, along with S&P 500 futures and Nasdaq futures. Large-scale Hamas attacks on Israel, and the expectation of a massive Israeli response, could weigh on futures and financial markets on Monday.

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After some struggles throughout most of last week, the new stock market rally took a bullish step on Friday. Major indices saw a bullish reversal and a number of stocks issued buy signals.

nvidia stocks, Meta platforms (dead), Arista Networks (network), backstage (QLYS), Eli Lilly (LLY), cm group (Continuing medical education), Vertif Holdings (VRT), CrowdStrike Holdings (CRWD), Rhythm design systems (CDNS) And Palo Alto Networks (Bano) were among those who liquidated buy points or early entries. They all have relative strength lines at or near the highs, reflecting strong performance against the S&P 500.

Plus those 10 stocks Tesla (TSLA) rebounded from key support on Friday and rose all week despite the wave of bad news.

Investors should prepare their watch lists this weekend and look to gradually add exposure if the market continues to behave well.

Nvidia (NVDA), LLY shares and Arista Networks, Vertiv and Meta platforms are in play IBD Leaderboard, with Tesla stock on the leaderboard watch list. PANW shares and Meta platforms are on SwingTrader. CDNS stock is on IBD Long-Term Leaders. MetaStock, Nvidia, Qualys, Arista Networks, Cadence Design, Palo Alto Networks, Tesla and Eli Lilly are in the market. Bahraini dinar 50. Nvidia, Tesla, Palo Alto, and ANET stock are in the market IBD Big Cap 20.

Eli Lilly was IBD Stock of the Day on Friday, with CrowdStrike, Arista Networks and PANW also the picks during the week.

Hamas attacks Israel

The Palestinian Hamas movement on Saturday launched brutal, large-scale attacks on Israel, with thousands of missiles and troops infiltrating much of the country’s south, deliberately killing hundreds of civilians and taking dozens hostage. Israeli Prime Minister Benjamin Netanyahu declared war on Hamas, with the possibility of massive retaliation in the coming days and weeks.

This could disrupt the potential normalization of relations between Israel and Saudi Arabia. Saudi Arabia has told US officials that it may increase oil production next year, as a potential goodwill gesture to get Congress to approve a US-Saudi defense agreement as part of Saudi Arabia’s recognition of Israel.

All of this could rattle financial markets, especially crude oil, on Monday.

Dow jones futures today

Dow Jones futures open at 6pm EST on Sunday, along with S&P 500 futures and Nasdaq 100 futures.

Remember, an overnight move in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.

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Stock market pool

The stock market suffered for most of the week, with the Dow Jones and S&P 500 falling to recent lows, ending their attempts to rally. But the Nasdaq’s bullish attempt continued. Major indexes on Friday saw a bullish reversal in high trading volume, with blue-chip stocks rising.

The Dow Jones Industrial Average fell 0.3% in stock market trading last week. The Dow Jones fell to its lows again on Friday morning, but then rose for a gain of 0.9%. The S&P 500 rose 0.5%, rebounding on Friday from its 40-week line. The Nasdaq Composite jumped 1.6% on Friday and throughout the week, crossing its 21-day line. The Russell 2000 small-cap index fell 2.1% after hitting a five-month low on Tuesday.

Market breadth was positive on Friday, but the overall trend has been very weak for weeks or months.

The yield on the 10-year Treasury note rose 21 basis points to 4.78%, but closed well below Friday’s early peak of 4.89%. The yield on 10-year bonds rose several basis points on Friday, but the dollar fell for the third session in a row.

US crude oil futures fell 8.8% to $82.79 per barrel last week. Gasoline futures fell 8.6% last week and just over 19% over the past three weeks. They hit the 2023 low during the week.

ETFs

Among the growth ETFs is the Innovator IBD 50 ETF (FFTY) advanced 0.5% last week. iShares Extended Technology Software Fund (ETF)IGV) jumped 2.2%, reclaiming the 50-day line. Cybersecurity plays a role CRWD shares, Qualys and Palo Alto are all members of the IGV. VanEck Vectors Semiconductor ETF (Trait) by 2.3%, with Nvidia stock ranking first. CDNS inventory is in SMH and IGV.

Reflecting more speculative stocks, the ARK Innovation ETF (Ark) fell 1.2% last week and the ARK Genomics ETF (Arkj) decreased by 5.7%. Tesla stock remains the No. 1 stock across Ark Invest’s ETFs.

SPDR S&P Metals and Mining Fund (XME) fell 3.2% last week. Global X US Infrastructure Development Foundation (ETF)cradle) decreased by 0.4%. US Global Jets ETF (Planes) decreased by 1.5%. SPDR S&P Homebuilders ETF (XHB) stepped down by 2.1%. Energy Select SPDR ETF (XLE(5.2% and the SPDR Fund were sold to the healthcare sector)Forty-fifth) rebounded 1%, and LLY stock was a prominent member. Selected Industrial Sector SPDR Fund (forty-first) decreased by 0.6%.

Financial Select SPDR ETF (XLF) fell 0.4%, and CME stock was a member.

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Stocks are in buy zones

Nvidia stock rose 2.4% to 457.62 on Friday and 5.2% for the week, crossing its 50-day line, offering an early entry. As of Friday’s close, NVDA stock has a new base at a buy point of 502.66. Stocks fell on Friday night as the information reported Microsoft (MSFT) The AI ​​chip will debut next month to reduce its reliance on Nvidia GPUs.

Meta stock jumped 3.5% to 315.43 on Friday, surpassing a cup-with-handle buy point of 310.64 as well as a 312.87 entry.

Arista stock rose 3.2% on Friday and 45.5% over the week to 194.02. Shares cleared early entry at 189.90. ANET stock now has a flat base with a buy point of 198.70.

Eli Lilly stock rebounded from its 50-day line on Friday, jumping 4.4% to 565.22 and moving above its 21-day moving average. This provided a new buying opportunity. LLY stock fell below its 50-day line on Tuesday but regained that on Thursday. Eli Lilly had a bullish week abroad.

Qualys stock jumped 4% on Friday to 160.97, surpassing short-term resistance around 155 as well as a 52-week high of 157.88. That last area can be viewed as a de facto flat base or handle of a base dating back to September 2022.

CrowdStrike stock jumped 6.9% on Friday to 176.69 on heavy volume, jumping off a 21-day line to erase a few months of chaotic consolidation. However, CRWD stock closed 11.4% above its 50-day line.

Palo Alto stock jumped 4.2% to 246.69 on Friday, jumping from near the 50-day line and surpassing some very short-term levels. PANW stock has a consolidated buy point of 258.88. However, investors can use 254.23, or the trend line located around 250, as other early entries.

CME stock jumped 4.85% to 211.93 in a big week that swept the past two months of trading. On Thursday, stocks rebounded from the 50-day line. On Friday, shares surpassed a firm buy point of 209.31, according to a MarketSmith analysis.

Vertiv stock rebounded 6.9% to 39.77 during the week, including Friday’s 4.2% gain. Shares rose from the 21-day and 10-week lines while also breaking short-term levels, offering an early entry. VRT stock, one of 2023’s biggest winners, now has a new flat base with a buy point of 40.41.

Cadence Design stock jumped 3.9% on Friday to 243.95, rebounding from the 50-day line and breaking the downward trend of the handle, offering an early entry. CDNS stock is running at a buy point of 247.50 cups with handle.

Tesla shares

Tesla shares jumped 4.1% to 260.53 during the week. On Wednesday, shares jumped 5.9%, rising above the 50-day line and offering an early entry. Stocks fell to the 50-day line Friday morning, but rebounded for a slight gain. A move above Thursday’s intraday high at 263.20 could provide a new early entry from a downtrend break in the handle. Tesla stock has a cup-with-handle base of 278.98.

Tesla has shown amazing strength in what appears to be a wave of bad news. Early Monday, Tesla reported third-quarter deliveries fell much more than expected. On Monday night, Tesla launched a new lower-priced Model Y that is $3,750 cheaper than the previous base model. Late Thursday, Tesla cut prices for the Model 3 and Model Y in the United States, along with cuts for the Model Y in Norway.

Bulls are eyeing an updated Model 3, which begins deliveries in China and Europe soon, as well as the upcoming Cybertruck and more long-term bets on autonomous driving, artificial intelligence and robotics.

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What are you doing now

The stock market rally attempt showed a bullish move to close the week, with major indices seeing a bullish reversal on Friday and a slew of leading stocks issuing buy signals.

Investors could and perhaps should have added some exposure on Friday. If the market continues to behave well, continue to shift out of cash, but do so gradually.

Remember, stocks rebounded on Friday as Treasury yields retreated from their highs, but the rally in market prices continues. It’s easy to imagine the major indexes falling again if the 10-year Treasury yield closes at 5%.

So be prepared to pull back if the market or your positions start to falter.

But this weekend is a good time to prepare. Make sure your watchlists are up to date. Pay special attention to stocks that are exercisable or nearly exercisable.

Next week, investors will get inflation reports on the Consumer Price Index (CPI) and Producer Price Index (PPI). Earnings season will start with C. B. Morgan Chase (JBM), UnitedHealth (United nations) And Delta Airlines (D) between the main headlines.

Read The Big Picture every day to stay on top of the market trend and leading stocks and sectors.

Please follow Ed Carson on X/Twitter at @IBD_ECarson And the topics in @edcarson1971 For stock market updates and more.

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