Dow futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures.
The stock market rally removed some key resistance last week. Major indices posted solid gains, responding positively to uneven earnings reports and economic data. Blue chips behaved well, with breakouts and point buys continuing to be successful.
Since the follow-up day on January 6, the market rally has shown strong gains. In fact, the advance suggests that this upside could be a “money-making” or even a “life-changing” rally, according to one growth investor.
So investors should take advantage of the opportunities. But do it carefully. The market is rallying around the key levels, while it’s another important week for the news.
an Apple (AAPL), a parent from Google the alphabet (The Google), Amazon.com (AMZN), the parent on Facebook Meta platforms (meta) are all available, as well as hundreds of other companies. Apple stock and other tech giants are recovering strongly, but they have a lot of repair work to do. However, their earnings and guidance will be key to the market’s rally as well as many other tech stocks.
The Federal Reserve holds its policy meeting next week, and another rate hike is expected on February 1st. The big question is when will Fed Chairman Jerome Powell and his colleagues call for a halt to further rate hikes.
Tesla (TSLA) rose significantly on a mixed earnings basis as CEO Elon Musk was optimistic about the future. TSLA stock has rebounded from the January 6 low in the bear market, but has yet to offer a buying point.
Meanwhile, Tesla’s arch-rival BYD (BYDDF), snowflake (snow), Shift4Payments (four) And etsy (ETSY) are four strong stocks in or near potential overbought areas. But treat them with caution.
ETSY stock is up and running SwingTrader. four stocks on defect 50.
Dow jones futures today
Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.
Remember to work in overnight Dow Jones futures contracts and elsewhere that does not necessarily translate into actual trading in the next regular session Stock market session.
Join IBD experts as they analyze actionable shares in the bullish stock market on IBD Live
Stock market rise
The stock market rally delivered solid gains across the board in the past week.
The Dow Jones Industrial Average rose 1.8% in the past week Stock market trading. The S&P 500 jumped 2.5%. The Nasdaq Composite jumped 4.3%. Small Capital Russell 2000 rose 2.4%.
US crude oil futures fell 2.4% to $79.68 a barrel for the week, retreating from a recent high of $82.48 during the day on Friday.
The 10-year Treasury yield rose 3 basis points, to 3.52%.
The Fed is expected to raise interest rates by just a quarter point on February 1st, after a half-point move in December and four consecutive 75 basis point hikes before that. Markets overwhelmingly expect another quarter point rally in late March, to the 4.75%-5% range. But investors are now betting that policymakers will remain flat.
Exchange Traded Funds
Among the ETFs, the Innovator IBD 50 ETF (fifty) advanced 2.5% last week. iShares Expanded Technology and Software ETF (IGV) increased by 4.5%. VanEck Vectors Semiconductor Corporation (SMHrose 5.2% to a five-month high.
Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark(up 10.7% last week and ARK Genomics ETF)ARKG) jumped 5%. Tesla stock is a major holding via Ark Invest’s ETF, as Cathie Wood’s Ark has been loading up on the shares in recent months. Ark also owns a small stake in BYD.
SPDR S&P Metals & Mining ETFs (XME) rose 2.1% last week to an eight-month high. Global Infrastructure Development Fund X US (cradle) increased by 3.3%. US Global Gates Foundation ETF (Planes) increased by 0.3%. SPDR S&P Homebuilders ETF (XHB) by 3.3%. Energy Defined Fund SPDR ETF (xle) by 0.8%, which is the seventh consecutive weekly gain. SPDR Financial Selection Fund (XLF) advances 2.55%. SPDR Health Care Sector Selection Fund (XLV) by 0.8%, which is the fifth consecutive weekly decline.
Top five Chinese stocks to watch now
Meta Platform earnings entitlement Wednesday night. META stock rose for the fifth straight week, jumping 8.9% to just below the 200-day line.
Apple’s earnings entitlement Thursday night. It’s likely to be a rough quarter, with iPhone production delays. But AAPL stock jumped 5.85% last week to close at the 200-day line.
Google’s earnings also late Thursday. GOOGL stock shrugged off the Justice Department’s new antitrust lawsuit to eventually rise 1.4%. But it is still far from 200 days.
Amazon earnings were also set after the closing bell on Thursday. AMZN stock tested the support of the 50-day line on Wednesday morning but surged higher, posting a weekly gain of 5.1%. Stocks are still well below the 200-day line.
Tesla stock rose 33% last week, crossing the 50-day line. Since the January 6 bear market low of 101.84, TSLA stock has broken out, gaining 75%.
On Wednesday night, Tesla earnings slightly beat lower analyst opinions, while revenue was roughly in line. But stocks rose as Elon Musk was bullish on demand after price cuts and expected production of up to 2 million cars.
Will the revival of Tesla demand continue? It may take several weeks before there is a clear picture. By Tuesday morning, investors should have some weekly electric vehicle registration data in China for Tesla and other automakers. However, Tesla Shanghai was closed last week due to the Chinese New Year holiday, which is also likely to affect demand. Later in the week, investors will get January sales data from BYD, New (nio), Lee Otto (L.I) And XPeng (XPEV), but not Tesla.
Tesla vs. BYD: EV Giants Vy for the Crown, But Which One is a Better Buy?
Stocks near buy points
BYD stock jumped 9.3% last week to a five-month high. China EV and battery giants have regained their 200-day streak, closing the week 5.5% above that key level. The stock is building the right side of a very deep cup bottom, but investors can still buy BYDDF shares as a solid 200-day line income. Investors can also wait to see if BYD stock forms a handle or even a short base within the long consolidation. January sales data looms late next week. BYD could also soon provide preliminary numbers for the fourth quarter, which should show triple-digit earnings growth again.
FOUR stock found support at the 21-day line, and rebounded to gain 0.4% to 63.69 for the week. that formed Tight three weeks pattern with 65.89 Point purchase. Investors could also look at the recent pause as an indication of consolidation going back to April 2022. However, a few weeks of sideways movement allowing the 50 day/10 week line to catch up would be ideal. FOUR stock has more than doubled since bottoming out in July.
SNOW stock rose 10% last week, rising above its 200 line on Friday for the first time in nearly a year. Investors can use that as a very powerful entry. Snowflake’s returns are still strong, although slowing. The data analysis software company continues to report GAAP losses, but is now profitable on an adjusted basis.
The Etsy stock has the most traditional entry. Shares rose 4.5% to 137.80 last week, finding support at the 10-day line. On the daily chart, ETSY stock is approaching 142.63 buy points in a shallow area cup base It formed above the 200-day line. On a weekly basis, it is in a buying range of 137.01 mug with handle entrance. Etsy’s earnings aren’t due until late February, but Amazon’s results could move the arts and crafts e-commerce company.
Market rally analysis
The stock market’s rally has stalled a lot of funds over the past week.
The main indicators that were tested support the middle of the week and passed with flying colours. By Friday’s close, the Nasdaq Composite had climbed above its 200-day moving average and December highs. The Russell 2000 Index also rose above its peaks in late 2022 during the day on Friday. The S&P 500, now decisively above its 200-day line, is about to hit its December highs. The Dow, which is now lagging behind, is also doing well.
Indexes faded as Friday closed, paring daily gains. But that’s after finishing near intraday highs for six straight sessions. Strong closings are the hallmark of bull markets.
The action came amid a barrage of earnings and guidance that was mostly weak or lackluster, along with mixed economic data. But it’s not the news, it’s the reaction to the news.
Meanwhile, blue chips continue to behave well. While Tesla has skyrocketed and this column highlights aggressive names like Etsy stock and SNOW, this is widespread progress. Energy, steelmakers, housing-related groups, retailers, financials, auto and travel parts, trucking and more are showing strength both sectorally and in individual stocks.
Investors are going to the upside in part because they see brighter and clearer prospects for the economy. China and Europe support global growth while inflation slows. The Federal Reserve is nearing the end of raising interest rates.
However, earnings season continues to be intense. While Apple, Google, Amazon, and Meta stocks have no points to buy, their reports — and hundreds of others — can still roil the market. The Fed may be more hawkish than expected. Big economic reports, including the January jobs report on Friday, will also be important.
A “life-changing” market rally?
However, a strong start to the market rally in 2023 is a very bullish sign.
Eric Kroll, co-author of “The Lifecycle Trade,” Observed on Friday Live IBD The Nasdaq Composite Index is up 8.9% from the follow-up day close of January 6 through Thursday’s close. The 15 day gain is extraordinarily high. Kroll says that “money making” rallies typically see gains of 5.5% over a similar range. For Life Changer pools, the average progression is around 8%.
It’s time to market with IBD’s ETF Market Strategy
What are you doing now
You don’t want life to pass you by, or life-changing highs, so you must take advantage of the current upside of the market. The strong advance in major indices and blue-chip stocks shows a real change in personality from the volatile uptrend in October and December.
So work on your watchlists, and look for stocks that are trending or actionable right now. Pay attention to earnings dates.
Gradually adding exposure, not buying extended shares and not concentrating in a specific property or sector is still important.
Read The Big Picture Every day to keep up with the market trend, stocks and leading sectors.
Please follow Ed Carson on Twitter at @tweet For stock market updates and more.
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