Dow Jones futures will begin trading on Monday night, along with S&P 500 futures and Nasdaq futures, towards the end of the long weekend.
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Wednesday’s stock market rally was met with a sudden decline, but it was more fear-mongering than a horror show. The major indexes rebounded, finishing near weekly highs with small to solid gains. The Russell 2000 hit a 20-month high on Friday.
But while market upswings don’t want to back down, a pause or rebound could be constructive. Stock prices are expected to expand on the Nasdaq market, along with many leading stocks.
Nvidia (NVDA) has created a new purchasing point.it was tesla (TSLA), amid a series of headlines. The third stock of the Magnificent Seven, microsoft (MSFT) is being held in a buy zone with the possibility of additional entries.
samsara (IoT) is trading closely while specialty steel is in play Tenaris (T.S.) is flirting with the buying area.Supported by Warren Buffett New Holdings (Nuu) corresponds to several key levels.
NVDA stock and Microsoft are doing well IBD Leaderboard. Microsoft stock is featured in his IBD Long Term Leaders. Nvidia and IoT stocks are IBD50. Tenaris was IBD’s “Stock of the Day” on Friday.
In the video embedded in the article, we analyzed weekly market trends and Nvidia, Samsara, and TS stocks.
Dow Jones futures today
Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, open at 6pm ET on Monday.
The US stock market, like many other exchanges around the world, will be closed on Monday for the Christmas holiday.
Please note that overnight trades such as Dow futures do not necessarily translate into actual trades in the next regular stock market.
IBD experts analyze leading stocks and markets on IBD Live.
stock market rise
Stock market gains shook off Wednesday’s decline, with major indexes rising for the eighth straight week.
In last week’s stock market trading, the Dow Jones Industrial Average rose 0.2%. The S&P 500 index rose 0.75%. The Nasdaq Composite rose 1.2%. The small-cap Russell 2000 rose 2.5%.
It is certainly positive that the market rally held its ground after Wednesday’s sudden drop. However, the Nasdaq is 7.8% above its 50-day line. Yes, the Nasdaq could widen further, but the wider the spread, the greater the risk of a pullback, and the more severe the situation will be. Various sentiment indicators are also showing increasing bullishness, supporting the possibility of a pullback.
It would be healthy for the market to pause or even rebound modestly, as it did in the weeks following Thanksgiving. The moving averages could then close the gap while the leaders could create a new handle or bullish pullback.
The yield on the 10-year Treasury note fell 2 basis points on the week to 3.91%. The two-year bond yield, which is more closely tied to the Fed’s policy outlook, fell 12 basis points to 4.34%.
Last week, U.S. crude oil futures rose 2.5% to $73.56 per barrel.
ETF
Among growth ETFs, iShares Expanded Technology Software Sector ETF (IGV) rose 1.5% for the week. MSFT stock is a major IGV holding. VanEck Vectors Semiconductor ETF (SMH) fell 0.5%. The top SMH component is his Nvidia stock.
ARK Innovation ETF (Arkku) Up 3.7% last week, the ARK Genomics ETF (arcg) soared 6%. TSLA stock is a major holding across Ark Invest’s ETFs.
SPDR S&P Metals & Mining ETF (XME) jumped 6.1% last week. Global X US Infrastructure Development ETF (pave) rose 1.5%. US Global Jets ETF (jets) rose 0.8%. SPDR S&P Home Builders ETF (XHB) rose 0.9%. Energy Select SPDR ETF (XLE) rose 0.8%, while the Healthcare Select Sector SPDR Fund (XLV) rose 0.6%.
Industrial Select Sector SPDR Fund (XLI) rose 0.1%, rebounding from midweek lows.
Timing the Market with IBD’s ETF Market Strategy
Stocks near the purchase point
Nvidia stock fell 0.1% last week to 488.30. The AI chip leader now has a new flat base right next to the double bottom base with a buy point of 505.48.
IOT rose 0.1% to 34.01. Samsara stock is in a buy range from the 32.41 entry on a cup basis. The stock is currently in a three-week tight pattern on the weekly chart, with an official entry of 36.91. Investors could use Friday’s high of 35.04 as an early entry.
Samara soared 26% on Dec. 1 on strong earnings and guidance. Since then, IOT stock has largely maintained its strong move, but the 21-day line has nearly caught up.
Microsoft stock rose 1% to 374.58, remaining above its 21-day line while its 50-day line closed the gap. The stock is still within the range of the cup-based buy point of 366.78, which was first cleared on November 10th. Investors may want to wait for MSFT stock to clear the short trend line, using Wednesday’s high of 376.03 as a concrete entry. Microsoft is also in a tight 5-week pattern with a buy point of 384.30. It’s going to be a flat base, base to base pattern starting next week.
Tenaris stock rose 3.3% last week to 35.25. The stock is approaching a flat-based buy point of 35.98, according to MarketSmith. On Friday, TS stock made an early entry at 35.31. Specialty steel pipe manufacturers have significant exposure to the energy market.
NU stock fell 1% to 8.22. Since mid-November, stock prices have been close to the 21-day line, and the 50-day line is catching up. NU stock currently has a flat base near the high of the previous consolidation. The new official buy point is 8.87. However, a significant breakout from the 50-day line could also lead to a breakout of a very short trend line, allowing for an early entry.
Warren Buffett’s berkshire hathaway (BRKB) is an investor in the Brazilian digital banking platform.
tesla stock
Tesla stock fell 0.4% on the week to 252.42, and was down 0.8% on Friday. The stock is working towards a double bottom buy point at 278.98. Strictly speaking, TSLA stock has a very thin handle on the weekly chart, giving it a buy point of 259.84. But ideally the handle would have some depth, perhaps allowing it to break below the December 20th low and at least test the 21-day moving average.
Norway said Thursday it has been investigating suspension defects in the Model S and Model X for more than a year and could make a decision, including a recall, by Christmas. Sweden announced on Friday that it was investigating a similar issue. It turns out Tesla has known about defects in suspension and steering parts across its model lineup for at least seven years, but often blamed drivers when those parts failed, Reuters This is in response to the report.
Tesla is working hard to reach its full-year EV delivery goal of 1.8 million units. Despite various subsidies expiring, EV registrations in China are doing well, but not so much in Europe and the US.
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what to do now
The market rally looks strong and there are good reasons to be bullish on 2024. However, for now, the major index appears to be sluggish, along with many other major indexes.
Therefore, standing putt is still a sound strategy.
With some proto handles, tight areas and pullbacks occurring, investors should work on their watchlists and double-check.
Read The Big Picture every day to stay on top of market direction and key stocks and sectors.
X/ Follow Ed Carson on Twitter. @IBD_ECarsonthread of @edcarson1971 and in the blue sky @edcarson.bsky.social The latest information on the stock market, etc.
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