Dow futures will open Monday night, along with S&P 500 futures and Nasdaq futures, after the long Christmas weekend. Tesla Shanghai halted production while rivaling China New (nio) New convertible models.
The stock market rally had another tough week, but has rebounded from Thursday’s lows. The major indices were mixed last week, but many blue-chips came under more pressure. The market rally looks shaky but it’s not over yet.
It’s not the time to buy stocks, especially growth names. But investors should always look out for potential growth leaders for the next sustainable rally in the market. Shift4Payments (four), Celsius (CELH), imping (PI), Enphase energy (ENPH) And the can (can) is holding up relatively well in the current weak market. FOUR and Box are consolidating near recent highs, while Impinj, Celsius and ENPH stocks are trading around the 50-day or 10-week lines. No action can be taken at the moment, and everyone could crash if the market continues to weaken. But watch them.
ENPH stock is on IBD Leaderboard, with PI arrow on the leaderboard watch list. Enphase, Shift4Payments, Box, and CELH stocks are at defect 50. ENPH stock is also on file IBD Big Cap 20. Shift4Payments was on Friday IBD stock today.
New Day 2022
Finally, Tesla’s competitor China New (nio) Nio Day 2022 is on Saturday. It just unveiled the EC7 coupe SUV, a potential Tesla Model Y competitor at the top. Shipments of the EC7 will begin in May 2023. Nio also unveiled a refreshed ES8 SUV, now on the NT 2.0 platform like its all-new models. Deliveries begin in June.
Nio also announced next-generation battery replacement stations and charging options.
Nio production is ramping up with strong demand for the latest ET5 sedan and ES7 crossover SUV. But relaxing Covid rules could lead to a massive wave of infections, and Nio and other electric car makers in China could run into production or supply chain problems again. Giant EV BYD (BYDDF) said this week that Covid cases among workers cut production by 2,000 to 3,000 cars per day.
Nio stock fell 5.4% last week, returning below the 50-day line. The stock is well below the 200 day line.
Tesla Shanghai production ceased
Tesla Shanghai halted production on Dec. 24, and workers are due back on Jan. 1, 2023. The year-end production halt has been widely reported in recent weeks, but the electric car giant has denied it. Shanghai had already slowed production earlier in the month, with inventories building rapidly despite price cuts in late October and big incentives at the end of the year.
Last week, Tesla stock fell 18% to 123.15 after falling 16.1% in the previous week. These are the worst weekly losses since the Covid crash in March 2020. TSLA stock has fallen to a 27-month low, down 70% from its November 2021 peak.
Dow jones futures today
With Christmas falling on Sunday, the US stock and bond markets will be closed on Monday, along with many exchanges around the world.
Dow Jones futures open at 6 p.m. ET on Monday, along with futures for the S&P 500 and Nasdaq 100.
Stock market rise
The stock market rally fell sharply for the week, but ended the week at its worst.
The Dow Jones Industrial Average rose 0.9% in the past week Stock market trading. The S&P 500 fell 0.2%. The Nasdaq Composite sank 1.9%. The small Russell 2000 finished just over break-even.
Apple shares fell 2% to 131.86 last week. It is testing the June bear market low of 129.04, dropping to 129.64 on Friday morning.
Nvidia stock fell 8.2% to 152.06, after a bad reversal below the 200-day line in the previous week, amid a broad chip sell-off. NVDA found support at the 50-day line on Friday.
The 10-year Treasury yield jumped 27 basis points, to 3.75%. The inverse relationship between Treasury yields and stock prices has faded in the past several weeks.
US crude oil futures jumped 6.9% to $79.56 a barrel during the week, surpassing $80 briefly on Friday.
Exchange Traded Funds
between the The best mutual fundsThe Innovator IBD 50 ETF (fifty(down 0.3% last week, while the Innovator IBD Breakout Opportunities ETF)fit) rose 0.7%. iShares Expanded Technology and Software ETF (IGV) decreased by 1.8%. VanEck Vectors Semiconductor Corporation (SMH) fell 4.7%, with NVDA stock holding big SMH.
SPDR S&P Metals & Mining ETFs (XME) rose by 1.6% last week. Global Infrastructure Development Fund X US (cradle) increased by 0.75%. US Global Gates Foundation ETF (Planes) fell 1.3%. SPDR S&P Homebuilders ETF (XHB) decreased by 1.25%. Energy Defined Fund SPDR ETF (xle(retrace 3.2% and the Financial Select SPDR ETF)XLF) increased by 0.8%. SPDR Health Care Sector Selection Fund (XLV) increased by 0.4%.
Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark) 6.9%, hitting a five-year low on Thursday. ARK Genomics ETF (ARKG) slipped 5.6% last week. Tesla stock continues to lead across Ark Invest’s ETFs.
growth stock to watch
Shift4Payments stock rose 4.1% to 54.06 last week. The stock witnessed four sharp fluctuations, but in the past two weeks it has tightened near its highest levels in seven months. the line of relative strength It is at an eight-month high, reflecting Shift4’s outperformance against the S&P 500. However, FOUR stock has no clear buy point right now.
Shift4’s profit and sales growth accelerated in the most recent quarter, with the company significantly expanding its target markets.
CELH stock fell 1.85% to 106.79 last week, consolidating just below the 21-day line and approaching the 10-week line. The percentage share briefly exceeded 118.29 cup base Buy a point earlier this month before pulling back. But this let the 10 week line catch up, while the RS line held near the highs. A strong rebound from the 10-week line and above the 21-day line would also break a short downtrend, which would provide an early entry for CELH stock.
Celsius is seeing buoyant sales growth and should see strong earnings in 2023, but the energy drink maker has a caffeinated rating.
Impinj stock rose 4 cents to 111.87, with Friday’s drop of 2.9% taking it lower to the 50-day and 10-week lines for the first time since the strong breakout of the earnings gap on Oct. 27. Four consecutive weeks off record highs, but the RS streak hasn’t fallen much. An upward bounce from the 50-day line would provide early time Point purchase.
Impinj’s earnings are up in 2022, with solid gains next year.
Enphase stock fell 3.1% to 293.95 last week, below its 50-day line. 316.97 points buy from a mug with handle The point of purchase is no longer valid. The ever-volatile ENPH stock may have a few weeks into the new consolidation. A move up from the 50-day line – possibly reclaiming the old buy point – could offer a strong entry.
Enphase earnings and revenue growth is accelerating rapidly, with strong growth in 2023 and beyond with solar incentives in place for years to come.
Box shares have traded tightly in the past two weeks, falling 0.7% to 31.01. The cloud-based data warehousing company is on the edge of a 29.57-cup handle point-of-purchase territory, according to MarketSmith Analysis, after the December 12 eruption. The last discontinuation can be taken as an indication of the eight-month boost. This buy point is 31.10, but investors can look for an early entry. Ideally, the 21-day line would catch up and the 50-day line would narrow the gap with Box stock.
The fund’s earnings growth has accelerated over the past two quarters.
Market rally analysis
The stock market rally is still under severe pressure. The major indices have been mixed for the week, and haven’t pulled back after the previous big and ugly week abroad.
The Dow rose modestly for the week after testing the 50-day line several times.
The S&P 500 fell modestly, but that masked some significant volatility for the week. The benchmark just regained its 50-day moving average on Wednesday. On Thursday, the S&P 500 and other major indices fell to their worst levels in weeks, but closed lower.
On Friday, the S&P 500 rose slightly, but below the 50-day line. Invesco S&P 500 Equal Weight Fund (RSP), with less weight for tech giants like Apple, they rallied on Friday to regain the 50-day mark.
Nasdaq was the big laggard, with Tesla and Nvidia stock being notable laggards. But there was widespread weakness in growth stocks, especially among chip names after weak results and guidance from the memory chip maker micron technology (mo).
The S&P 500 needs to regain the 50-day line, but that would only be a first step.
It is not clear whether the market will bounce, head towards lower lows, or move sideways erratically for an extended period. The latter may be more likely until there is some clarity about when and where the Fed will stop raising interest rates, and whether the economy will slide into a clear recession.
While growth stocks like Enphase and Celsius are worth watching, many medical stocks and other defensive growth paths are still holding out. Metals, mining, industry, housing and some energy plays are doing relatively well.
What are you doing now
The stock market simulated an upswing during the week, with the technical picture not changing significantly. Apart from the Dow Jones, the major indices are below the major moving averages. Leading stocks have been hard to hold on to, at best.
Investors should have minimal exposure and be wary of adding new deals. Don’t get excited on a strong open or even a bullish session or two.
Keep your watchlists up-to-date. Lots of stocks are created or prepared from a variety of sectors. Some names show strong relative strength but don’t have a clear buying point. It’s okay now.
In the meantime, spend some time reviewing your trades over the past year, including your top gainers and losers, and trades you didn’t make but wish you had. Were you following your rules, and were your rules sound?
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