Dow Jones Futures: Market Rally Strong As Tesla, Rivian Run, But Watch For This; 3 shares in buying zones

Dow Jones futures tipped higher Tuesday night, along with S&P 500 futures and Nasdaq futures. The stock market had a solid increase on Tuesday, with the S&P 500 index and the Nasdaq composition just below the latest records.


EV shares continued to be market rally hot rods. Rivian (RIVN) and Lucid Motors (LCID) continued to lead, but Tesla stock picked up again. Xpeng (XPEV) and Li Auto (LI) are capable of action now.

Chipmakers and software stocks continued to do well.

In the meantime, retailers are performing well, with HD stock and Lowes (LOW) clearing three-week-tight patterns while Goal (TGT) moved higher in a buying zone. Home Depot (HD) topped the revenue shows on Tuesday morning, while rival Lowe’s and discount giant Target have futures early Wednesday.

Meanwhile, President Joe Biden said he would announce a decision on the election of a central bank governor in about four days. It suggests a weekend announcement that gives financial markets time to think about it. Most analysts see Biden as either nominating Fed Chairman Jerome Powell for another term or electing Fed Governor Lael Brainard.

Tesla (TSLA) is on the IBD Leaderboard and IBD 50.

The video embedded in this article analyzed On holding (ONON), MSCI (MSCI) and Li Auto warehouse.

Dow Jones Futures today

Dow Jones futures rose 0.1% relative to fair value. S&P 500 futures rose 0.1% and Nasdaq 100 futures rose.

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 powerful stocks in the stock market rally on IBD Live

Stock market rally

The rise in shares continued to shrug its shoulders from last week’s short withdrawal. The Dow Jones Industrial Average rose 0.15% in Tuesday’s trading session. The S&P 500 index rose 0.4 percent. The Nasdaq composite rose 0.8 percent. Small-cap Russell 2000 rose 0.1%.

Among the best ETFs, Innovator IBD 50 ETF (FFTY) rose 1.7%, while Innovator IBD Breakout Opportunities ETF (BOUT) rose 1.35%. iShares Expanded Tech-Software Sector ETF (IGV) rose 1.1%. VanEck Vectors Semiconductor ETF (SMH) rose 1.3%.

The SPDR S&P Metals & Mining ETF (XME) fell 1.9% and the Global X US Infrastructure Development ETF (PAVE) rose 0.4%. US Global Jets ETF (JETS) fell 2.4%. SPDR S&P Homebuilders ETF (XHB) rose 1.9%, with Home Depot and Lowe’s shares among the best components. Energy Select SPDR ETF (XLE) was down 0.2% and Financial Select SPDR ETF (XLF) was down 0.1%.

ARK Innovation ETF (ARKK) reflects more speculative history stocks, up 1.2% and ARK Genomics ETF (ARKG) up 2%. The Tesla share is still the top holding among ARK Invest’s ETFs.

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EV Stocks Hot

The Rivian share rose 15% higher to 172.01, and has continued to rise vertically since the listing on 9 November. The RIVN stock has more than doubled from the $ 78 offer price. Lucid shares rose 24% to a nine-month high after claiming a big jump in Lucid Air reservations since the end of September.

But both the Rivian stock and Lucid are greatly expanded from any point of purchase.

Xpeng shares rose 5.3% to 50, once again above a 48.08 buy point, marking the highest close since January, according to MarketSmith analysis. Xpeng will unveil a new electric SUV at a car show on 19 November. The XPEV share reports earnings on November 23rd.

Li Auto shares jumped 9.75% to 32.76 and went towards a buy point of 34.93. But Tuesday’s high-volume rebound from the 50-day line and a break in the trend line signal an early entry for the Li share. Li Auto, which makes the hybrid Li One SUV, is likely to report earnings in late November.

Meanwhile, China EV and battery giant BYD Co. (BYDDF) rose 4.1% to 39.08, not far from record highs.

Tesla shares climbed 4.1% to 1,054.73, after falling 1.9% on Monday and more than 15% last week. The stock is back above the 21-day line, while the 50-day / 10-week lines are struggling to catch up. Tesla’s CEO Elon Musk’s ongoing TSLA share sale has weighed on the EV giant, which had been significantly expanded from the 50-day line at the top on 4 November.

Retail shares

The HD stock jumped 5.7% to 392.33 on Tuesday after better than expected Home Depot earnings. Rival Lowe’s jumped 4.2% to 244.78 before the report on Wednesday morning. Both cleared three weeks of tight patterns, and provided a place for existing owners to add a few more shares. But both Home Depot and Lowe’s shares appear to be expanding now.

The stock rose 1.1% to 266.39 on Tuesday, although rival Walmart fell modestly on third-quarter results. The TGT share is still in the area from a buying point of 262.61 cups with handles that were cleared on Monday. But with target earnings in print on Wednesday, investors may want to wait before taking a new position.

Market Rally Analysis

The rise in equities has erased almost all of the recent short-term decline. The S&P 500 Index and Nasdaq are right at record highs. Dow Jones and Russell 2000 have a little more work to do.

Leading stocks perform well, especially in growth areas such as electric cars, chips and software. But the housing and retail trade also works well – especially housing-related retailers such as Home Depot – along with steel and many finances.

The downside to the upside is that the market rally is already approaching to be expanded again. The Nasdaq composite is 5.6% above its 50-day line, while the Nasdaq 100 is up 5.8%. It is not quite at the 6% level that is starting to get worrying, but there may not be much room for leading stocks to run before the market rally stops or retreats again.

Time market with IBD’s ETF market strategy

What to do now

As the stock market rally approaches expanding again, investors may be wary of increasing exposure significantly, especially in growth names.

There is nothing wrong with letting your existing positions run in a healthy market rally.

To increase your exposure, be sure to buy as close to the point of entry as possible. That means being prepared. Build your watch lists and identify your goals in advance. Li Auto shares broke a trend line on Tuesday. Investors who had Li shares on their watch lists could have bought that Tuesday morning using the 21-day line or Friday’s high of 31.35 as triggers.

This is definitely not the time to buy stocks that are expanding, especially vertical EV games like Rivian stocks.

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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