September 29, 2023

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Dow Jones Futures: How to Deal with This Market Rally; “Magnificent 7” are all close to points of purchase

Dow Jones Futures: How to Deal with This Market Rally;  “Magnificent 7” are all close to points of purchase

Dow futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures.




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The stock market rally had a solid week, even as the indices paused after Wednesday. Lower Treasury yields added to the market’s gains for most of the week, although yields rebounded on Friday.

It is a definite uptrend in the market, as the leading stocks are doing quite well. Investors must participate with discipline.

seven wonderful arrows, apple (Camel), Microsoft (MSFT), a Google parent the alphabet (Google), nvidia (NVDA), Amazon.com (weigh up), Tesla (TSLA) And Meta platforms (meta) They rose to their title in 2023.

Nvidia stock, the clear leader in the rise in the AI ​​market, is in the range. As well as shares of Apple, Amazon and Google. Meta stocks, Microsoft and Tesla are all facing major resistance, but may make entries soon.

NVDA stock and Meta running IBD Leaderboard. Microsoft stock is on IBD’s list of long-term leaders. AMZN stock is on SwingTrader. Nvidia shares are on BD 50. Google and Nvidia shares are in the market IBD Big Cap 20.

The video included in this article reviewed and analyzed a game-changing week Baker Hughes (BKR), samsara (The Internet of things) and Tesla shares.

Airbnb and Blackstone join the S&P 500

Airbnb (ANBP) And Black stone (BX) after news of their joining the S&P 500 before the opening on September 18th as part of the quarterly rebalancing of the S&P indices. ABNB stock is set to reclaim the 50 day line while BX stock may breach.

Dow jones futures today

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

While Dow futures will trade normally on Sunday and Monday, US stock markets will be closed on Monday for Labor Day. Other exchanges around the world will be open.

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


Join IBD experts as they analyze leading stocks and the market on IBD Live


stock market rally

The stock market rally earlier in the week rallied, then held those gains as major indices reclaimed their 50-day lines.

The Dow Jones Industrial Average rose 1.4% in stock market trading last week. The S&P 500 rose 2.5%. The Nasdaq Composite Index jumped 3.25%. Shares of Russell 2000 small jumped 3.6%.

The 10-year Treasury yield fell about 7 basis points for the week to 4.17%, but that’s on Friday’s gain of 8 basis points. However, the record yield fell from a 15-year high of 4.36% recorded on August 22.

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US crude oil futures rose 7.2% to $85.55 a barrel, ending the week at its highest close this year. Copper futures rose 1.3% for the week.

Exchange Traded Funds

Among the growth ETFs, the Innovator IBD 50 ETF (FFTY(bounced 5.2% last week, while the Innovator IBD Breakout Opportunities ETF)fit) figured 4.7%. iShares Expanded Software Technology Fund (ETF)IGV) by 4.6%, with MSFT owning a huge stake. VanEck Vectors Trading Semiconductors Inc.Trait) jumped 4.8%. Nvidia stock is SMH’s largest component.

SPDR S&P Metals & Mining Fund (XME) jumped 5.5% last week. Global X US Infrastructure Development Foundation (ETF)cradle) advanced by 3.6%, reaching record levels. US Global Gates ETF (Planes) rose 1.6%. SPDR S&P Homebuilders ETF (XHB) by 6.2%. Energy Select SPDR ETF (xle) jumped 3.6% to the highest level in seven months. SPDR Fund for Selected Healthcare Sector (XLV) rose by 0.1%, but it was far from its weekly high. SPDR Fund for Selected Industrial Sector (xli) rose 2.1%.

Financial Select SPDR ETF (XLF) by 2.1% and the SPDR S&P Regional Banking Fund (ETF)Cree) jumped 4.6%.

Reflecting more speculative stocks, the ARK Innovation ETF (ark(up 6.5% last week and the ARK Genomics ETF)kick back) increased by 6.7%. Tesla stock is the #1 stock in Ark Invest’s ETFs.


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Seven greats

Dubbed the ‘Magnificent Seven’, giant stocks did well in 2023, sending the market higher. But there is no doubt that Nvidia is the stock and company of 2023 that will lead the AI ​​revolution.

NVDA stock rose 5.4% to 485.09 over the past week, rebounding from its 21-day line to a new closing high on Thursday before falling 1.7% on Friday. Nvidia stock is still in the range from the buy point of 480.88, although it is close to the extended 50-day line.

With Nvidia’s clear lead in AI in an AI-driven market, can investors afford not to invest in this name?

AMZN stock rebounded from the 50-day/10-week line to start the week, then rose from the 21-day line on Thursday, and also broke a short trend line. that offered early entry. Shares rose 3.65% to 138.12. Amazon stock is on a short consolidation process that could turn into its own base. One can look at the recent pause as an indication of the year-long consolidation.

Apple stock rose 6.1% to 189.46 last week, decisively retracing the 50-day moving average, providing an early entry. AAPL stock has an official buy point of 198.23 from the base of the cup. Apple’s very mediocre fundamentals are a concern. Tech giant Dow is expected to unveil the Apple iPhone 15 at an event on September 12th.

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Google shares rose 4.45% last week to 135.66. Stocks cleared the short self-consolidation just above the previous base. This provided a new buy point at 133.74. The RSI line has been trending higher for several weeks now.

META rose by 3.8% over the past week to 296.38, but hit resistance at the 50-day line over the past few days. A decisive move above that level, just below 300, would provide an early entry. Meta Stock is running its first new rule since March, but it won’t be official until another week.

MSFT stock pulled back from a record high of 366.78 on July 18, with some significant losses in volume around its earnings report. Stocks rebounded modestly, albeit on a lighter volume. Microsoft stock rose 1.8% to 328.66 for the week, but ran into resistance at the now declining 50-day line on Friday. A decisive move above this level could provide an early entry, although the sliding RSI is not a great sign. MSFT stock has an official consolidation buy point of 366.78, according to MarketSmith analysis.

Tesla stock rose again above the 50-day line on Tuesday, but did not decisively clear this key level. Then shares fell 5.1% on Friday to the 21-day high. However, TSLA stock rose by 2.7% over the week to 245.01. A move above Thursday’s high of 261.18 could provide an early entry for the electric car giant. Tesla stock has a consolidated buy point of 299.29.

Tesla unveiled an updated Model 3 in China on Friday, and the high price tag came as somewhat of a surprise. But this news may have been expected. Meanwhile, Tesla also sharply cut the prices of the Model S and X in the United States, while also lowering the price of the FSD to $12,000 from $15,000.

The moves undercut the bullish argument that Tesla’s price cuts are almost over, with margins picking up on the back of the refreshed Model 3 and upcoming Cybertruck.

Market rally analysis

It was a big bullish week for the stock market rally. Major indices rose back above their 50-day moving averages on the follow-up day on Tuesday, just three trading days after the ugly bearish reversal on Aug. 24.

Growth stocks are leading the charge, including Nvidia, but the leadership is expanding.

Major indices were technically mixed on Friday, but showed resilience given the significant rebound in Treasury yields. The Nasdaq fell only slightly because of a handful of corporate behemoths, notably Tesla, Nvidia and Nvidia stocks Broadcom (Avgo).

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The market breadth is improving, as the winners outpace the losers through Friday.

The Russell 2000 moved above the 50-day line on Friday, with banking stocks bouncing on a less inverted yield curve. However, the Invesco S&P 500 Equal Weight ETF (RSP) struggles on this major level.

Meanwhile, the Dow Jones is testing the 21-day and 50-day lines, although they are holding for the time being. However, this is a reminder that it wouldn’t take much for the S&P 500 or even the Nasdaq to break down the 50 day lines.

Growth stocks still look strong, and energy names came out late in the week as crude oil prices rose again. Meanwhile, the housing sector, industries, metals, insurance brokers and others are showing strength or improving.

It is possible that the NASDAQ and the broader stock market will continue to rise, although the pause would not be surprising. This may allow a few arrows to build up the right side of the bases or form handles.

Earnings season is about to end, even given the economic calendar next week. Hence, it is possible to subdue the main risks.


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What are you doing now

The stock market rally is doing its best to help investors. The FTD on Tuesday, which coincided with the indices regaining their key levels, was a clear signal of increased exposure.

And with the overall market trending higher for the rest of the week, more buying opportunities are emerging each day. But it wasn’t a flood, which reinforces the idea that investors should gain exposure gradually, day by day.

Lots of stocks are being generated from a variety of sectors. If we are at the beginning of a new market rally, or a new phase of the uptrend for 2023, now is the time to take advantage.

So spend this long weekend turning on the screens and updating your watchlists.

Read the big picture every day to stay on top of the market trend, leading stocks and sectors.

Please follow Ed Carson on X/Twitter @IBD_ECarson For stock market updates and more.

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