The Dow Jones futures will reopen on Sunday evening along with S&P 500 futures and Nasdaq futures after showing resilience in the stock market rally last week. Bitcoin trades below 56 56,000 after hitting new highs again last week.
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Solar IPO Shoals Technologies (SHLS), 5G chipmakers Quad and Maxliner (MXL), Dow Jones wide Micro .ft (MSFT) is close to buy points with SHLS stock and microsoft ft already actionable and Apple pul supplier Queue (QRVO) So from the argument. We will also take a look Tesla (TSLA), which continues to test key levels.
The Dow Jones really had a sharp edge when the S&P 500 and S&P 500 humbly came down and closed short-term support. Growth stocks, especially the more speculative ones, suffered significant losses, although they generally bounce back on Friday. Metals, miners and financial stocks were strong performers.
Still, the latest action highlights the need for proper entries and sound sales rules. The problem with such a strong stock market rally is that he is a bad teacher. Like a simple one, everyone gets easy money. But if you take the wrong lessons from the last 10 months, that easy money will go away quickly.
While the Nasdaq is no longer expanding, there is growing concern overall about margin debt and investor exposure.
Why this IBD tool makes it easy to find top stocks
Tesla Stock and Micro .ft IBD are on the leaderboard. MSFT stock IBD is on the long-term leaders. SHLS stock is the IBD stock of the day. MXL Stock is the centerpiece of the latest IBD Stock Analysis column.
Dow Jones futures today
Dow Jones futures open at 6pm on Sunday, with S&P 500 futures and Nasdaq 100 futures.
Remember that overnight action in Dow futures and elsewhere does not necessarily translate into real trading in the next regular stock market session.
Join IBD experts as they analyze the additional stocks in the stock market boom on IBD Live.
Corona virus news
Coronavirus cases have reached 111.24 million worldwide. Covid-19 death tops 2.46 million.
U.S. There have been 28.60 million cases of coronavirus in India, with more than 507,000 deaths.
Stock market rally last week
The stock market rally was a mixed week, with growth cyclone from stocks and mini-rotation in the financial sector.
The Dow Jones Industrial Average averaged 0.1% in last week’s stock market trading. The S&P 500 index fell 0.7%. The Nasdaq Composite retreated 1.6%, but bounced somewhat from its 21-day exponential moving average.
Growth stocks rose in the middle of the week, but gains on Friday helped limit losses overall.
Among the best ETFs, the innovator IBD50 ETF (FFTY) fell 0.6% last week, thanks to 2.15% on Friday. Innovator IBD breakout opportunities ETF (BOUT) down 0.2% last week. Eichers Extended Tech-Software Software Sector ETF (IGV) fell 1.4%. Micro .ft stock is the top IGV holding. Vanek Vectors Semiconductor ETF (SMH) lost 0.3% with a component of QRVO stock.
The loss was huge in the name of further speculation. The ARK Innovation ETF (ARKK), which includes Tesla stock and many others, also fell 2.5% on Friday with a 2.3% rise. The ARK Genomics Revolution ETF (ARKG) retreated 1.1% last week, with some key holdings taking on big hits.
Bitcoin prices rise
Bitcoin remained hot, with speculative stocks struggling a bit, hovering in the sky at 50,000, 52,000 and finally, 56,500 on Friday. It was trading below 56 56,000 on Friday night.
With cryptocurrency and Tesla CEO Elon Musk’s growing mainstream acceptance, continuing to focus on the table, Bitcoin has a lot of momentum. While Bitcoin does not have the fundamentals per se, investors can still trade it technically. Bitcoin and Bitcoin related stocks are rising. Bitcoin pullbacks won’t come as a surprise, even if they are only temporary.
SHLS stock
Shoals stock rose 5.9% last week to 40.17 with almost all gains coming in. Now SHLS stock is actionable at the beginning of action0. The official buy point is .81..86, according to the Marketsmith analysis.
The IPO base has a lot of positive qualities. Shortly after participating in the IPO launch in late January, SHLS stock improved just 16%. On Friday, the relevant Strength Line stock survived a new hit high that is still in the base. It’s particularly bullish, giving Shoals a blue dot at the end of its RS line on the Marketsmith chart.
Shoal Technologies manufactures various gears for solar energy radiant systems and components to carry electricity from solar panels to inverters. It is already profitable with sales growth.
Maxliner stock
Last week, MaxLinier stock rose 3.3% to 38. to, including a rise of 8. %% on Friday. It is down 38.81 by points from the seven-week consolidation. In the last few weeks, there have been days of more volume than the down session.
The RS line for MXL stock is near record highs.
The 5G chipmaker recorded huge growth in the most recent quarter: earnings up 144% on 178% sales growth.
Cuewave stock
On Friday, the quiz stock rose 4.8% to 179.39, turning the weekly loss into a 1.9% strength. Friday’s rebound from the 50-day / 10-week line also pushed QRVO stock from its 21-day line and to the edge of the downward-looking trend line. Investors will be able to buy an Apple Paul iPhone chip supplier here or wait for a little more strength to clear the down trend.
Qwave stock is working on a base with a potential 191.93 official buy point. It needs another week for a flat base, although 15.01% deeper the hair is too deep. Investors want to start at least a 10-week line or trend line position. The QRVO stock has had a solid gain over the past few months but has a tendency to run first and then pull back to the top of the previous consolidation.
While Quezos had a strong week in stock, the key customer was not Apple Pal. Shares of Apple Pal fell 4.1%, ending 1.9% below its 10-week line.
Micro .ft stock
Micro .ft stock fell 1.6% to close at 240.97. It dropped slightly to a three-week tight, although investors could use 246.23 as an add-on entry. MSFT stock is still in the range of 232.96 by points
Dow Jones is thanks to tech giant cloud computing. Microsoft’s revenue growth has accelerated in the last two quarters. The 17% revenue gain in the last quarter was the best in years.
Tesla stock
Tesla stock was down 4.3% at 781.30 last week. Shares surged from the 50-day line on Wednesday – as Archie Fund’s Kie Thi Wood expressed growing confidence in Tesla stocks and said he would buy more shares. But TSLA stock ended the week below the 10-week line.
Earlier this month, this column reviewed the Tesla Stock Bull case from a technical point of view. Those conditions are still pending and have improved in some ways. The 50-day / 10-week line will give TSLA the opportunity to buy stock rebounds, but investors can wait to see if TSLA stock can reclaim its current 21-day. As Tesla continues to move sideways, the potential down-op trend line also becomes less ste. Also, if Tesla starts bouncing back, it will soon have a new base.
But from a technical point of view, what is the bear case for Tesla Stock? Well it has lagged behind the market in the last few weeks, which is not a big deal so far. Speculative names are facing some pressure, and T.S.L.A. The analyst’s price targets on Tesla stocks make heroic assumptions about the company’s sales, self-driving prospects, and much more for decades to come.
TSLA stock has been hitting resistance at the 21-day line, at least for now.
Keep in mind that a 50-day / 10-week line test is a test. Successful testing will offer new buying opportunities, but failure can trigger a sell signal.
If TSLA stock falls decisively in the 50-day / 10-week line, what is the next support area? Probably 695, the prices that Tesla entered the S&P 500 index. In addition you are looking at the top of the base above about 500. The 200-day line is now not far from the November breakout buy point of 4650, about 450.
It will all remain within the character for TSLA stock, especially if the market recovers. Even in large numbers since the end of 2019, Tesla stocks have some cold bases.
So if investors are buying Tesla stock at or near this level, the price that is off the 10-week line and ready to sell. A decisive break could be a sign of a little more profit for long-term investors.
Tesla is arguably the most important stock in the market boom. It is the ultimate story stock, with a huge market cap. Call options helped boost its 2020 run. Arc Funds is a major Tesla stock investor and champion. Even the EV maker has bought hungry bitcoin with a power of even 1.5 1.5 billion.
If and when Tesla marks a major peak, it could trigger or coincide with a larger stock market peak.
Stock market analysis
Last week the Nasdaq had a pullback, gaining support where you would expect on a 21-day line. Is pullback or circulation out of speculative growth? Friday’s futile action, with the Nasdaq closing near the session low, was not inspiring.
If the stock market rebounds quickly, how much is there to run? The Nasdaq closed 5.1% higher on Friday from its 50-day moving average. It’s not elaborate, but it’s not far off coming once again.
Meanwhile, other indicators have continued to warn. Margin debt had increased by 3% in January a year ago. It is the highest since the end of 2007, although it is below the 55% annual gain associated with the top of the market. However, the rise of leveraged ETFs and the skyrocketing use of options suggest that investor gains outweigh margin debt alone. Also, margin debt year-over-year comparisons will be easier in February and March, as investors exited during the coronavirus crash.
Fed policy, stimulus checks, and the leverage of millions of Americans stuck in a domestic zero-fee trading era have helped the stock market plummet. But if the market a Significant Correction, which leads to a large reduction in leverage, which further accelerates sales.
Right now, the stock market rally is still looking strong. And in the last 10 months, the cramps have generally been shallow and short-lived. Even for improvement the correction improvement over the last two months was relatively modest. But at some point the stock market boom will turn into a major correction or bear market. Enjoy this rally of the stock market, but be disciplined and ready for a change in character.
What to do now
Big stock market rallies make bad teachers. But at this stage of the boom, investors should follow the rules and do their homework.
Check your individual holdings and overall exposure. Plan a game for your stocks and make your portfolio stressful.
It’s a good idea to check out or watch the IBD live show on Wednesday featuring David Ryan. Ryan stressed the need to focus on the sound base and the rules of the sale. Ryan noted significant strength in many cyclone stocks and also in financial matters.
Slam investors should focus on leading stocks, but having a variety of leadership is a good idea. Many mining, agriculture and bank stocks have performed strongly in recent months. Having some of these names can help you avoid big moves in your portfolio. Having pilot positions in various top groups will also help in being aware of the strengths in those areas. This could lead to more buying in those areas, especially if the market is facing more difficulty in the diagonal areas.
All this means to be prudent and cautious, not to bend. It is still a strong stock market boom. There are good reasons to invest significantly.
Read the big picture every day to stay in tune with the market direction and leading stocks and sectors.
Please follow Ed Carson on Twitter IBD_ECarson For stock market updates and more.
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