Dow futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rally is in the midst of a modest pullback after a strong rally from its mid-March lows.
The main indicators still look intact. But investors should be careful about new buys in the very short term and be prepared to exit positions if they don’t work out. Growth and shipping stocks had problems late last week, such as Dutch brothers (Bruce) And the GB Hunt Transportation Services (JBHT).
Tesla delivery due
Delivery of the Tesla is expected on Saturday morning, although it may arrive as late as Tuesday evening. Analysts expect Tesla (TSLA) to report global first-quarter deliveries of 309,000. The Tesla Berlin plant began deliveries, while the Shanghai plant was closed for several days in March amid China Covid restrictions.
Tesla stock continued to rise last week towards 1208.10 cup base Buy a point or enter a trend line around 1145, but the handle may start working.
CHINA GIANT EV BYD (BYDDF) is also expected to report March sales in the next few days, with some forecasts that sales of electric vehicles and plug-in hybrids will top 100,000 for the first time. BYD stock retraced its 50-day falling streak on Friday. But it is still below the 200-day streak.
Tesla and BYD sales numbers will track deliveries in March from Exping (XPEV), New (NIO) And the Lee Otto (LI). Nio and Li Auto stock regained 50-day streaks on Friday, while XPEV stock is also up. In addition to strong deliveries, Chinese electric car names rose along with other US-listed Chinese stocks on the back of a report that eased delisting fears.
Tesla stock is running IBD Leaderboard and the defect 50. XOM is in a file IBD Big Cap 20, full of energy and commodity names. The video included in this article analyzes the market rally and discusses an Apple (AAPL), JBHT stock and SEDG stock.
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.
stock market rise
The stock market rally last week started strong but ended with modest gains or minimal losses.
The Dow Jones Industrial Average fell 0.1% last week stock market trading. The S&P 500 rose less than 0.1%. The Nasdaq Composite Index is up 0.7%. Small cap Russell 2000 also rose 0.7%.
The 10-year Treasury yield fell 11 basis points last week to 2.38%. The two-year Treasury yield rose to 2.48%, moving decisively above the 10-year rate. The yield reversal is a possible signal for a recession – going forward – as the Fed prepares to raise interest rates aggressively in upcoming meetings. Experts disagree on whether a yield curve inversion poses a serious recession risk. Fed Chairman Jerome Powell recently indicated that the very short end of the yield curve is still well below long-term rates.
However, the yield curve is still watching.
US crude oil futures tumbled nearly 13% to $99.27 a barrel, their biggest weekly loss in nearly two years. President Biden said Thursday that the United States will release 1 million barrels per day for six months from strategic reserves to help combat soaring gasoline prices.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) is down 1.4% last week, while the Innovator IBD Breakout Opportunities ETF (fit) decreased by 0.8%. iShares Expanded Technology and Software Fund (ETF)IGV) 2.2%. But the semiconductor ETF VanEck Vectors (SMHIt sold 3.6%, down sharply from the middle of the week.
SPDR S&P Metals & Mining ETF (XME) fell 1.4% last week, but bounced off its lows. Global Infrastructure Development Fund X US (cradle) sank 1.5%. US Global Gates Foundation (ETF)Planes) jumped 4.3% as fuel costs fell. SPDR S&P Homebuilders ETF (XHB) fell 2.8% to a 52-week low.
SPDR Specific Energy Fund (SPDR ETF)XLE) lost 2.15% but rebounded from its lows. XOM’s stock is a major XLE property. SPDR Financial Choice Fund (SPDR)XLF) fell 3.3%, as the inverted yield curve hit bank stocks. SPDR Healthcare Sector Selection Fund (XLV) rose 1.3%.
Shares reflect more speculative stories, the ARK Innovation ETF (see you) jumped 4.7% last week and the ARK Genomics ETF (ARKG) 7.3%. Tesla stock is the number one stock held via Ark Invest’s ETFs. Cathie Wood recently started buying some shares of Nio and was adding to Ark’s BYD position. Ark also owns some XPEV stock.
On Tuesday, Apple’s stock crashed above the 176.75 . level double bottom Point purchase. But after an 11-day winning streak, it was no surprise to see the iPhone giant falter, slipping modestly in the past three sessions. Over the course of the week, AAPL stock was down 0.2% to 174.31. It is now working on a handle on the daily chart, but this needs at least another two days to be proper. On the weekly chart, Apple stock technically has a small handle with 179.71 buy point. But investors are likely to wait for at least a daily handle formation, perhaps with more depth.
The Relative force line For Apple stock it is right at record heights.
Exxon stock, like many other energy companies, has shown resilience amid lower crude oil prices. Shares fell 2.4% to 83.12 last week, but rebounded from a 10-week streak test, according to MarketSmith Analysis. At just 2.9% above this key level, investors can buy XOM shares here. They can also wait for the oil major to consolidate further and form a proper base, although that could take a few weeks.
The SEDG stock tends to generate significant intraday swings on a daily basis, but is shrinking somewhat on a weekly basis. SolarEdge stock fell 3.7% to 322.83 last week, finding support at the 21-day moving average. Stock just below 335.67 cup with handle Point purchase. SEDG stock is still well above the 50 day line, so a longer pause could be beneficial.
JB Hunt Stock
JB Hunt stock made a strong breakout on March 16th, initially pulling back gradually before failing decisively this week. After breaking below the buy point earlier in the week, the JBHT on Friday fell below the 50-day line and closed below the 200-day mark for the first time in nearly two years. JBHT stock fell 9.6% on Friday, Leading All Losers for the S&P 500It is down 13.2% for the week.
Shares of other carriers, as well as rail companies, were big losers amid industry concerns about slowing freight demand. Union Pacific (UNP) is down 4.85% on Friday, roughly a modest gain from the early March breakout.
Market Rise Analysis
The stock market rallied higher until Tuesday, breaking past new resistance levels. Then the major indices fell again, with the Nasdaq stopping short of the 200-day line while the Dow fell back below that key level.
So far all this is still normal, as pressure on Friday for small gains suggests that the rally is in good shape. But investors don’t know if stocks will bounce back quickly, continue to fall or move sideways for a few weeks, or if conditions will deteriorate quickly.
Shares of Apple, Tesla, and several other companies are working on potential handles. But these still generally work.
While the overall market looks solid, key sectors have seen ugly weeks.
A lot of tech stocks suffered late last week, especially chips. Many of these names were still deep in the grammar, but others love them Alpha and Omega Semiconductors (AOSLThe hacks were unsuccessful. AOSL stock collapsed 18% last week, with a larger reversal from Wednesday’s highs.
Selling shares in JBHT, Union Pacific and other shippers may be related to poor chip and PC names. After staying close to their homes during the pandemic, Americans may shift spending away from merchandise toward travel and nights on the town.
Homebuilders and banks are on downtrends, struggling with rising interest rates and flat-to-inverted yield curves, respectively.
Meanwhile, cycles like power, steel, fertilizer and others reasserted themselves late in the week. Some like XOM stock and seashells (shill) near the points of purchase, while others have been extended.
What are you doing now
The initial strong stock market rally is over. Investors should also step back and look at their holdings.
Are you highly focused in certain sectors? While the major indices closed relatively unchanged during the week, some sectors and stocks incurred sharp losses. Whether this is a sector turnover or just a market rally, investors need to listen to these market signals and act accordingly.
Keeping positions small and diversified amid modest public exposure can limit fallout. Taking profits quickly and cutting losers is still vital.
Work on those watchlists. The recent market movement could create a wave of new buying opportunities in the future. So you want to be ready.
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