Overnight Dow Jones futures are down slightly, along with S&P 500 futures and Nasdaq futures, with a focus on Wednesday’s Apple iPhone event. The bullish stock market rally lost more ground as Treasury yields soared.
The major indicators are down more than the 50 day moving averages. The Nasdaq, which extended its losing streak to seven days, dented its late-June lows on the day.
It’s not the time to add exposure, but investors should look for stocks with strong relative strength. Energy Enphase (ENPH), Ulta Beauty (ULTA), Cigna (CI), waste connections (WCN) And the waste management (WM) Everyone owns Lines of relative force at a 52-week high. The RS line tracks the performance of a stock against the S&P 500 Index and is an easy way to spot the leaders and the laggards in any type of market. An RS line that hits a new line like a stock breakout or before it is considered particularly bullish.
ENPH, Waste Connections and Ulta Beauty stocks are flashing buy signals, although the market environment is making any purchases risky at the moment.
The video included in this article discusses market action on Tuesday and analyzes Enphase, sunron (Being) and WCN stock.
Chinese EV startup New (NIO) and a retailer of sporting goods Sports and Outdoors Academy (ASO) before opening on Wednesday. Nio shares are struggling alongside most electric car makers in China. ASO stock is trying to maintain the support at the 50-day line. A strong bounce from this level could provide an early entry.
Apple iPhone event
apple (AAPL) will iPhone 14 unveiled And a new Apple Watch at the Wednesday event at 1 p.m. ET. The latest Apple iPhone is expected to feature incremental improvements – a faster processor, better camera, and improved battery life – in exchange for revolutionary changes. However, new products are key to the holiday shopping season.
Apple stock fell 0.8% to 154.53 after hitting resistance at the 50-day line. Stocks fell below 200 days and then 50 days last week. AAPL stock’s RS line is not far from the highs, but the market has been weakening.
Dow jones futures contracts today
Dow futures are down 0.4% against fair value. S&P 500 futures fell 0.5% and Nasdaq 100 futures fell 0.5%.
Crude oil and natural gas futures were down 1%.
stock market rise
The stock market opened higher with modest gains but the indices quickly fell back. Despite the intraday bounce, the stocks fizzled out once again.
The Dow Jones Industrial Average fell 0.55% on Tuesday stock market trading. The S&P 500 fell 0.4%. The Nasdaq Composite Index lost 0.7%. Small-volume company Russell 2000 shares fell 0.9%.
US crude oil prices rose 1 cent from Friday’s close to $86.88 a barrel. But that’s after it was up 4% on Monday morning OPEC + unexpectedly cut production quotas little bit. Natural gas futures fell 7.3%, adding to Friday’s strong losses and continuing to retreat from 14-year highs. This is despite Russia saying it will not restore the flow of natural gas to Europe unless sanctions are lifted.
The 10-year Treasury yield rose 15 basis points to 3.34% to close at an 11-year high in June at 3.48%. The 10-year yield hit a recent low of 2.52% on August 2.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) decreased by 1.2%. iShares Expanded Technology and Software Fund (ETF)IGV) lost 0.8%. VanEck Vectors Semiconductor Corporation (SMH) slipped 1.1%.
SPDR S&P Metals & Mining ETF (XME) rose 0.7% and the Global Infrastructure Development Fund (ETF) in the USA (cradle) rose 0.2%. SPDR Specific Energy Fund (SPDR ETF)XLE) Sinking 0.9% and Financial Select SPDR ETF (XLF) decreased by 0.2%. SPDR Healthcare Sector Selection Fund (XLV) rose 0.1%
high RS . stock
Enphase stock jumped 4.9% in above average volume, rebounding from the 21-day moving average and breaking the downside in a short consolidation. Investors can buy ENPH shares here. It is the highest stock in the No. 1 rated solar array, with Matrix Techniques (I see), sunron (Being) and the Invesco Solar ETF (tan) Among those who resided. But any market recovery could quickly reverse.
An ENPH stock can have an extension flat base On the weekly chart after this week.
ULTA stock rose 1.1% to 427.82, settling above 417.08 double bottom point purchase. Shares of cosmetics stores struggled to close above a previous buying point of 429.58. ULTA stock has been restricted for the past year.
Cigna stock fell 0.5% to 285.25, finding support around the 21-day moving average and above the 10-week line. CI stock is in the range of 273.67 point purchase It was first cleared in early July. The health insurance company’s stock is just above the alternate entry at 282.43. Cigna stock can work on file Three tight weeks Style while the traditional base may take an extra two weeks.
Waste management inventory rose 0.4% to 169.12. Shares were at 170.28 on the day, which exactly matches a consolidated buy point still in place, according to MarketSmith. It is also hitting resistance at the 21-day moving average and a short downtrend. WM stock saw three drops in volume above average last week.
Waste Connections stock broke the downtrend of the handle on Tuesday, providing an early entry. But shares closed 0.5% higher at 141.30, well off intraday highs. The WCN stock has 144.56 cups with a point-of-purchase handle. Other stocks in the highly rated pollution control group are doing well.
Market Rise Analysis
The Nasdaq has now fallen for seven consecutive sessions. The same goes for the Russell 2000 index. The Dow Jones and S&P 500 have only one day in this extension. Everyone is starting to lose sight of the 50 day moving averages.
It can be said that the market due to a rebound. But this will not make sense.
Major indexes that restore their 50-day and 21-day streaks will be just a first step. The 200-day moving average will be the real hurdle.
The 10-year Treasury yield has jumped again, near its long-term highs and racing higher since early August. It’s hard for stocks to withstand high Treasury yields, especially when that also causes the dollar to rise.
Solar stockpiles and pollution control are among the leaders. Health insurers, energy stocks, and biotechnology are doing relatively well.
What are you doing now
Investors should have minimal exposure and not look to add too much exposure, if any. If you haven’t pulled back much in the past two weeks, you might be looking to take profits or cut losses.
Staying largely on the sidelines until there are real signs of market strength could mean missing out on some buying opportunities, some of which may work out well. But if the market really had legs, then there would be plenty of opportunities to make money. If the market bounces up and down or sells, keeping cash high will be key.
If you can’t resist and take a position in, say, ENPH stock or Waste Communications, be aware of the increased risks as the market struggles and the major indicators encounter multiple resistance areas.
Enphase Energy and other solar names are worth a look. As well as stocks with strong relative strength on a large scale. This is where the next round of potential leaders is likely to be. So build your watch lists with high RS stocks.
But in a tough market, the relative winners can be absolute losers.
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