Dow Jones Futures: Market Rally Gets Steam; 9 shares to see

Dow Jones futures open Sunday night, along with S&P 500 futures and Nasdaq futures. The experiment at the stock exchange rally accelerated, and the large averages rose sharply on Friday and for the week.


UnitedHealth (UNH), Shockwave Medical (SWAV), Ulta beauty (ULTA), Enphase Energy (ENPH), Chemical and mining company (SQM), Quanta services (PWR), Northrop Grumman (NOC) are stocks to look at. All have relative strength lines at or near heights.

Shockwave shares erupted on Friday, with Ulta and PWR shares no doubt offering early entries. UnitedHealth, Northrop, SQM and ENPH shares are not far from buying points.

Also keep an eye on Google’s parents Alphabet (GOOGL) and the EV giant Tesla (TSLA). Google stocks and Tesla are nowhere near the old highs, but these megacaps are rising above key levels after staying above their lows in May this month.

The NOC stock is on the IBD Leaderboard, with the PWR stock on the Leaderboard watch list. The GOOGL stock is on IBD Long-Term Leaders. UnitedHealth, Ulta Beauty, SQM and the ENPH stock are at IBD 50. The UNH stock and Ulta are at IBD Big Cap 20.

UnitedHealth was Thursday’s IBD Stock Of The Day. SQM was Tuesday’s stock of the day.

Dow Jones Futures today

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

Keep in mind that overnight trading in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular trading session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Stock market rally

The experiment on the stock exchange rally delivered large weekly gains in a short week, the large indices closed on Friday at their best level.

The Dow Jones Industrial Average rose 5.4% in last week’s trading. The S&P 500 index rose 6.5 percent. The Nasdaq composite rose 7.5 percent. Small-cap Russell 2000 jumped 6%.

The 10-year government interest rate fell 11 basis points to 3.12%, and rose from just over 3% at Thursday’s lowest level.

US crude futures fell 0.3% to $ 104.27 a barrel last week, rising 3.2% on Friday.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell 1.5% last week, with commodity-related names weighing FFTY. Innovator IBD Breakout Opportunities ETF (BOUT) rose 1.7%. iShares Expanded Tech-Software Sector ETF (IGV) rose 10.3%. VanEck Vectors Semiconductor ETF (SMH) rose 5.1%.

SPDR S&P Metals & Mining ETF (XME) fell 1% last week, even with a big upturn on Friday. Global X US Infrastructure Development ETF (PAVE) rose 3.6%. US Global Jets ETF (JETS) rose 5%. SPDR S&P Homebuilders ETF (XHB) rose 7.6%. Energy Select SPDR ETF (XLE) fell 2.6% and Financial Select SPDR ETF (XLF) climbed 4.6%. Health Care Select Sector SPDR Fund (XLV) increased by 7.8%, with the UNH share a large stake.

ARK Innovation ETF (ARKK) reflects more speculative history stocks, 18.25% last week and ARK Genomics ETF (ARKG) 18.1%, both moving above the 50-day limit. The Tesla stock remains a top stock across Ark Invest’s ETFs.

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Shares close to buy points

Shockwave shares rose 6.4% on Friday and 25% for the week to 197.69. It managed a buy point of 194.41 cup-with-handle, with Friday’s move at a volume above the average for SWAV shares. Shockwave Medical has been profitable in the last three quarters, while revenue growth has been in triple digits in the last five quarters.

UnitedHealth shares rose 9.6% for the week to 495.64, but retreated below the 50-day line on Friday. The UNH share has a double-bottom base with a buying point of 507.35, just above Thursday’s high intraday. Several other health insurance companies are establishing themselves.

The Ulta Beauty share rose 3.7% on Friday and for the week to 410.70. On Friday, the shares took back their 50-day line. Without a doubt, it was an aggressive entry. The ULTA stock has a strange cup-with-handle base with an official buy point of 429.58.

The ENPH share rose 7.4% to 198.39 last week. It is above a recent buy point of 193 that is no longer valid, although investors can see an early entry here. Enphase warehouse is working on a 217.33 handle introduction. While solar energy stocks have been strong in recent weeks, Enphase and its peers tend to have large daily fluctuations.

SQM shares fell 1.1% for the week to 89.28, but jumped on Friday to regain their 50-day line. The lithium giant, which also has significant exposure in the fertilizer market, has recently achieved an increase of 27% round trip. But a strong pull over the 50-day limit, perhaps crossing the 21-day, would offer an aggressive entry. SQM earnings and revenue growth are exploding.

Quanta Services shares rose 10.65% to 125.98, rising back from the 200-day line and over 50-day highs. It undoubtedly provides an aggressive entry into a cup-with-handle base. The official buy point is 138.56 for PWR shares, according to MarketSmith analysis. Quanta provides infrastructure services to electrical companies.

Northrop shares rose 4.45% last week to 463.70, almost all on Friday. It’s back over the 50-day limit. The NOC stock starts a new consolidation after an unsuccessful outburst from a cup-with-handle base. A strong pull from the 50-day line will offer an early entry. The old buy point of 477.36 is no longer valid, but a lot of trading has taken place nearby there in the last four months.

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Tesla shares

The Tesla stock rose 13.35% for the week to 735.15, moving above the 21-day moving average. The TSLA stock is modestly below its 50-day high and peak in early June, which is about to coincide right now. The EV giant has a long way to go to reach its 200-day line. But compared to most megacap names, the Tesla stock shows some glimmer of hope.

At the end of this coming week, Tesla is likely to release production and delivery figures for the second quarter.

Google shares

Google stock is doing even better, regaining its 50-day line on Friday, near its peak in early June. Shares rose 10.1% for the week to 2,359.50. Google stock has a long way to go to reach its 200-day mark. This roughly coincides with a downward trend line from the top on 2 February of 3,030.93. It can offer an early or long-term leadership input.

Market Rally Analysis

The large indices picked up again after heavy losses for large parts of the month. It was the best week for Nasdaq since mid-March, while the S&P 500 and Dow had their best week since the last full week of May. Remember that after the bounce in late May, the market moved sideways in several sessions before plunging into new lows.

Nasdaq showed strong action on Thursday, but the volume ended a fraction lower. The gain also did not stand out among the recent major market movements, while much of the market struggled.

On Friday, all the major indices had large price gains in a broad, strong progress. The volume soared thanks to the annual Russell rebalancing at the close.

The Nasdaq composite jumped over its 21-day moving average on Friday, along with the Dow Jones and S&P 500. Above that, the 50-day line and peaks in early June are resistance.

Breaking decisively above these levels will provide stronger evidence that the recent upturn is more than a negotiable rally.

High inflation, interest rate hikes in the Fed and fears of recession are still major obstacles for the market.

Medical sector looks strongest. Health insurance companies and some product manufacturers such as UnitedHealth and Shockwave are coming up after several drug games gave buy signals. Chinese stocks have risen in recent weeks, but they generally appear to have expanded or continued to improve.

Commodity trading has been hit hard, despite Friday’s downturn, reflecting fears of a recession.

Many of last week’s winners were beaten down growth games

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What to do now

With the market rally increasing speed, investors could choose to add some exposure, either via individual stocks or a broad market ETF.

There is nothing wrong with waiting for a follow-up day.

Of course, the market has had several confirmed market rallies in 2022 that quickly turned around. Even after a follow-up day, investors should still look to take partial profits and reduce losses quickly.

Work with your watchlists. Focus on stocks that are actionable or nearly so, but have a broader list of names that show relative strength, even if they are out of position.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.


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