Dow Jones futures will open on Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rally came under pressure last week, with the Nasdaq and speculative growth hit hardest.
TeslaNo (TSLA) rival Neo (NIO) and Zoom Video Communications (ZM) reports Monday’s earnings, but both big 2020 winners are at a good height, along with Tesla stock.
This time is for rescuers and in search of stocks that hold well. Taiwan Semiconductor (TSM), General Motors (GM), R.H. (RH), Target (TGT) and In mode (INMD) is worth watching to see if they can build the right foundations, while the market separates itself.
The market boom under pressure is at a turning point. Achieving a key support level will signal a new strength. But last week’s low would send the Nasdaq break bearish signal.
Tesla Stock and Taiwan Semi IBD are on the leaderboard. Tesla and TSM stock is on IBD50. RH Friday was the IBD stock of the day.
Why this IBD tool makes it easy to search for top stocks
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 worldwide have reached 113.98 million. The death toll of Covid-19 peaked at 2.52 million.
U.S. In coronavirus cases have crossed 29.13 million, in which 523,000 people have died.
An advisory panel late Friday night recommended emergency clearance for the FDA Of Johnson and Johnson (JNJ) coronavirus vaccine. The FDA is expected to approve one shot of the vaccine immediately. It will provide a second shot in hand for vaccination efforts.
Vacations hit a record 2.2 million on Friday.
Stock market rally
The stock market rally saw many changes in the wild intraday, with key indices ending with significant declines near weekly lows.
The stock market fell 1.8% last week after the Dow Jones Industrial Average hit a record high on Wednesday. The S&P 500 index is down 2.5%. The Nasdaq composite fell 4.9%.
The 10-year Treasury yield rose 9% to 1.46% after a brief 1.6% peak on Thursday. While there is good news for many financiers, growth stocks weigh on rates.
Among the best ETFs, the Innovator IBD E0 ETF (FFTY) fell tum. %% last week, while the Innovator IBD Breakout Chances ETF (BOUT) sank 8.8%. Eichers Extended Tech-S Software Software Sector ETF (IGV) fell 6.8%, with Zoom Video stock a major component. Vanek Vectors Semiconductor ETF (SMH) fell 5.1%, with TSM stock holding the top.
More reflective than speculative story stocks, Arc Innovation ETF fell 14.8% and Arc Genomics ETF 13.8%. Tesla stock is the top holding in Arc Invest’s ETF.
No, earn zoom on tap
Chinese EV maker Neo and video conferencing leader Zoom Video Report earned earnings late Monday. As competition in China’s EV market intensifies, Neo earnings and delivery forecasts will be closely watched. With investors eager for insight into the company’s prospects as we move into the post-epidemic world later this year, Zoom Video should flow in with second-quarter huge growth.
Zoom stock sank 10.5% to 45 45.7878 last week below its 10-week line. Shares found support on their 200-day moving average on Friday. Investors who are riding on huge profits in 2020 and still have ZM stock may choose to hold strong, but otherwise, there are no strong reasons to get a position right now.
Neo stock dipped 17% last week to 373.61, which is now 16% below its 10-week line. It is a decisive break and a strong selling signal, especially with the earnings on tap. Long-term holders are sitting on huge profits and may choose to keep some shares in the earnings report.
Speaking of Tesla stock, the EV leader jumped 13.5% to 675.50. It is now 14% below its 10-week line. It has benefited about half from its powerful November rally. Like Neo, TSLA stock investors should have made at least a partial profit by this time.
Stock to watch
TSM stock fell 7.8% to 125.94 last week, but found support at Friday’s edge on the 50-day and 10-week moving averages. In a strong market boom, investors may look for a rebound as a buying opportunity. But for now, investors should probably wait for T TSM stock to provide new support as the market sorts itself out.
General Motors dipped just 2.4% last week to 51.33, but also found 10-week line support, surging slightly higher on Friday. It could have a new base soon after hitting a record high in early February.
RH stock bounced back from 2.9% to 490.37 last week, testing its 50-day and 10-week lines. It has a flat base with 542.11 by points.
The target stock fell 2.9% last week to 183.40, below its 50-day and 10-week lines. But it is still within a flat base of 200.06 by points. Target earnings are due on Tuesday morning.
Inmod stock fell 0.2% to 68.96 and rose 2.7% on Friday. Shares have traded hard over the past few weeks after hitting record highs. INMD stocks have seen some support in the recent 21-day period. The relative strength line at the relative strength elevation is correct. INMD stock needs to form a base, but the action has been very strong.
Stock market rally analysis
Major indices retreated last week, particularly the Nasdaq combined. The tech-heavy index tried to regain its 50-day moving average on Friday, but failed to close above it amid heavy selling nearby. Also, the volume was much lighter in the days above than the downside.
For most of the week, the stock market was bullish on whether it could be due to speculative growth and the circulation of a violent sector in the cyclical names of the real economy. The Dow Jones reached record highs on Wednesday, providing further evidence.
However, the Dow Jones and S&P 500 fell sharply on Thursday-Friday, barely closing above their 50-day line.
All major indexes are below their 21-day exponential moving average. The 21-day line served as support for the Nasdaq during the April-September stock market rally and the post-election market rally. But in recent days it has served as a resistance.
On the downside, Tuesday’s intraday low is lower for the Nasdaq. That low essentially at the 13,000 level and Jan. Is at a low of 29. The current stock market rally near that area is likely to end. But we are not there yet.
What you should do now
Investors should be cautious in making new purchases until the Nasdaq is above its 21-day line. You should significantly reduce exposure in the last two weeks. If the Nasdaq goes down from Tuesday’s low and closes, it will be a sign of moving ahead in cash.
Analyze your holdings. Are there stocks that should have been partially or fully sold in the past week? What are your long-term bets in which you want to hold the top position?
Even if you are fully cash, it is important to stay engaged. Work on your watchlists, focusing on high RS stocks such as Taiwan Semiconductor and Target.
Check the relative strength on the new high listing on the IBD stock screener. Also use the RS line on New High and RS Line Blue dot stock listings on Marketsmith.
Make sure you are watching commodity related dramas, financials and other cyclones.
Review your business over the last several months. Look at your big winners and losers. Look for stocks that you own that you have sold out too soon, losing big winners. Identify chart patterns and strengths and weaknesses in your business moves.
Read the big picture every day to keep up with 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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