Dow Jones futures will begin trading on Sunday night, along with S&P 500 futures and Nasdaq futures.Warren Buffett’s berkshire hathaway (BRKB) is scheduled to report third-quarter earnings on Thursday.
The stock market had its best week in 2023 as U.S. Treasury yields fell following generally weak economic data and comments from Federal Reserve Chairman Jerome Powell. The Nasdaq held a follow-through day on Wednesday, and the S&P 500 and Dow Jones provided further confirmation on Thursday.
An increasing number of stocks are issuing buy signals. Now is the time for investors to add exposure, but do so with caution. The market rally still faces several key resistance points.
Nvidia (NVDA) remains a major stock to watch. The AI chip leader regained its 50-day moving average on Friday, moving it closer to a buy point.
moreover, tesla (TSLA) has rebounded from multi-month lows, but hit resistance at a key level on Friday. Tesla stock is a notable holding in Cathie Wood’s Ark Invest ETF, along with Shopify and DraftKings.
Nvidia stock is on IBD Leaderboard, DKNG stock joined the list on Friday. SHOP inventory is listed on the leaderboard watchlist. ZS stock is on SwingTrader.Lulu’s stock is IBD50. DraftKings had him as the IBD Stock Of The Day on Friday.
The video embedded in this article details the weekly bull move, while also analyzing DraftKings stock, Zscaler, and NVDA.
Warren Buffett’s Berkshire Hathaway will announce its third quarter results on Saturday morning. In addition to earnings, investors will also want to know about Berkshire’s share buybacks and cash position. Berkshire will also reveal whether it bought or sold entire stocks during the quarter.
BRKB stock rose 6.1% last week to 351.81, rebounding from the 200-day line and testing the 50-day line. The stock price is trading flat at a buy point of 373.34.
Apple stock is Berkshire’s largest holding to date. Stock prices fell sharply in the third quarter and continued to fall in October. However, AAPL stock rose 5% last week, maintaining its 50-day price tag despite Friday’s decline when Apple’s results and outlook were less positive.
Dow Jones futures today
Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, open at 6pm ET on Sunday.
Please note that overnight trades such as Dow futures do not necessarily translate into actual trades in the next regular stock market.
stock market rise
Stock market rally had a big week, with major indexes rebounding sharply from multi-month lows
In stock market trading, the Dow Jones Industrial Average rose 5.1%, its best week in a year. The S&P 500 Index rose 5.85% and the Nasdaq Composite Index rose 6.6%, both their best weeks since early November 2022. All follow-through days were taken to confirm new gains as some of the highest weekly gains in recent months.
The Dow Jones, S&P 500, and Nasdaq Composite all cleared their 50-day lines on Friday, but the results were inconclusive.
After several weeks of weak results, the market breadth was once again very strong. The uptrend once again crushed the downtrend. The new high exceeded the new low for the first time in over a month.
The small-cap Russell 2000 rose 7.6%, its best week in three years after falling to a three-year low. Invesco S&P 500 Equal Weight ETF (RSP) jumped 5.9%. Both are moving towards the declining 50-day line, but are still well below the 200-day line.
The First Trust Nasdaq 100 Equal Weight Index ETF (QQEW) rose 6.1%, finally crossing the 200-day line and rising to the 50-day line on Friday. The Nasdaq 100 rose 6.5% to a new 50-day high and is nearing the trend line.
The yield on the 10-year US Treasury note fell 29 basis points (bp) to 4.56%. The 10-year Treasury yield fell below a key level for the first time since May, ending at its 50-day line.
U.S. crude oil futures fell 5.9% last week to $80.51 per barrel.
market rise analysis
Major indexes rose significantly this week. An increasing number of stocks are issuing buy signals from various market sectors.
Just as the spike in yields caused the three-month market decline, it is clear that the sharp drop in Treasury yields was a major catalyst for the new market rally.
With the major indexes just above their 50-day lines after a big rally, a pause in the market wouldn’t be a huge surprise, especially if U.S. Treasury yields stop falling or rebound.
The Dow Jones tested the trend line from the start of the downtrend. If the Nasdaq and S&P 500 break their downtrends, there will be even more evidence that this market rally has staying power.
iShares Enhanced Technology Software Sector ETF (IGV) Sprinted 6.3%. VanEck Vectors Semiconductor ETF (SMH) soared 8.1%, making NVIDIA stock the No. 1 stock. Both SMH and IGV have recovered to their 50-day lines.
SPDR S&P Metals & Mining ETF (XME) rose 3.7% last week. SPDR S&P Home Builders ETF (XHB) soared 11%. Energy Select SPDR ETF (XLE) rose 2.4%, while the Healthcare Select Sector SPDR Fund (XLV) rose 3.5%. Industrial Select Sector SPDR Fund (XLI) rebounded by 5.35%.
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Nvidia stock fell below recent lows during Tuesday, but has rebounded and is up 11.1% for the week to 450.05. The stock price broke above the 50-day line on Friday. The double bottom buy point for NVDA stock is 476.09. Investors may use the trend line, currently near 460, as an early entry.
Note: On daily or weekly charts, Nvidia has multiple volume spikes on the downside, but no upside.
At the very least, investors should keep an eye on NVIDIA as a leader in the market rally and the AI boom.
Stocks near the purchase point
LULU stock rose 5.5% this week to 407.93, rebounding from its 50-day line and regaining a buy point at 406.94. However, all of this week’s gains were on below-average volume. Some trendy apparel retail manufacturers and retailers still have consumer strengths.
SHOP stock rose 22% on Thursday following strong financial results, bouncing from multi-month lows within a 36% double-bottom base, according to MarketSmith analysis. The official buy point is 67.60, but SHOP stock cleared the downtrend line on Friday. Investors can buy Shopify stock here or look for a possible handle at some point.
On Friday, DKNG stock rose 16.5% to 33.75 on strong earnings and guidance. The stock has cleared multiple early entries above its 50-day line to its highest close since December 2021. On Friday morning, the online sports betting giant appears to have crossed its 50-day line. The official buy point for DraftKings stock is 34.49, but ideally you should pause and get behind the wheel. The relative strength line has already reached its highest value.
ZS stock rose 6.5% last week to 164.37. Friday’s 3.25% pullback in volume provided a buying opportunity in the cybersecurity space. Zscaler’s stock price has been consolidating in a chaotic manner since mid-June.
NTES stock rose 5.6% to 112.72, clearing its two-month flat base buy point of 110.82. The Chinese online gaming giant’s stock has recovered from just below its 50-day line over the past two weeks. However, NetEase stock is expected to grow further from its 50-day line.
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Tesla stock started this week below the $200 level for the first time since May, but has rebounded to $219.96, up 6.1% for the week. On Friday, the stock regained its 200-day line, but hit resistance at its 21-day line.
In any case, Tesla needs to decisively break above its 50-day line before it becomes interesting again.
Since receiving Elon Musk’s warning about the slump in third quarter results,
Developments such as the Cybertruck have further called into question Tesla’s status as a growth company. Tesla’s deliveries are expected to recover in the fourth quarter as deliveries of the new Model 3 begin in China and Europe. But it now has operating margins similar to traditional automakers, and the bull market in TSLA stock relies heavily on moonshot bets on autonomous driving, robotics, and artificial intelligence.
what to do now
Investors should take advantage of new market rallies and recent buying opportunities. But do it gradually. If the market continues to progress, you can add it to your portfolio.
As earnings season has passed its peak and major economic news has emerged, some major uncertainties have been resolved.
However, there is still a chance that the market’s renewed rally could stall again near the 50-day line, especially if yields recover again. A pause may be healthy for recent big winners to take a breather and build new buying opportunities. Other stocks that have not been transferred may also rise in price.
You should definitely run screens over the weekend and build an extensive watchlist of interesting stocks. We will focus on a smaller group of stocks that we may target early next week.
Read The Big Picture every day to stay on top of market direction and key stocks and sectors.
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