Dow Jones futures will begin trading on Sunday night, along with S&P 500 futures and Nasdaq futures.
After a tough week for much of the week, a fresh rally in the stock market on Friday was a bullish move. Major indexes showed a reversal and many stocks issued buy signals.
Nvidia stock, meta platform (Meta), Arista Networks (ANET), Qualis (QLYS), Eli Lilly (Lily), CME Group (CME), Vertive Holdings (VRT), crowdstrike holdings (CRWD), cadence design system (C.D.N.S.) and palo alto networks (Panwoo) were among those who cleared the buy point or early entry. All have lines of relative strength at or near their highs, reflecting strong performance relative to the S&P 500.
In addition to those 10 brands, tesla (TSLA) has rebounded from Friday’s major support and has risen this week despite a spate of bad news.
Investors should be preparing their watchlists this weekend and considering adding exposure gradually if the market continues to perform well.
Nvidia (NVDA), LLY stock, Arista Networks, Vertiv, and Meta Platforms are featured IBD Leaderboard, the leaderboard has Tesla stock on its watchlist. PANW stock and meta platform is located on SwingTrader. CDNS stock is listed on the IBD Long Term Leaders. Meta stocks include Nvidia, Qualys, Arista Networks, Cadence Design, Palo Alto Networks, Tesla, and Eli Lilly. IBD50. Nvidia, Tesla, Palo Alto, and ANET stock prices IBD big cap 20.
Eli Lilly was Friday’s IBD Stock Of The Day, with CrowdStrike, Arista Networks, and PANW stocks also selected for the week.
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
The stock market has struggled for much of this week, with the Dow Jones and S&P 500 falling below recent lows, ending any attempt at a rally. But the Nasdaq’s attempts to move higher continued. On Friday, the major indexes showed a bullish reversal due to high trading volume, and major stocks rose.
The Dow Jones Industrial Average fell 0.3% in stock market trading last week. The Dow hit another low on Friday morning, but has since rebounded to rise 0.9%. The S&P 500 rose 0.5%, rebounding from its 40-week line on Friday. The Nasdaq Composite rose 1.6% on Friday and for the week, above its 21-day line. The small-cap Russell 2000 fell 2.1% after hitting a five-month low on Tuesday.
Although Friday’s market breadth was positive, the overall trend has been very weak for weeks or months.
The yield on the 10-year U.S. Treasury rose 21 basis points to 4.78%, but closed well below its early Friday peak of 4.89%. On Friday, the 10-year Treasury yield did rise a few basis points, but the dollar fell for the third straight session.
U.S. crude oil futures fell 8.8% last week to $82.79 per barrel. Gasoline futures fell 8.6% last week and have fallen more than 19% over the past three weeks. This week it hit a 2023 low.
Among growth ETFs, Innovator IBD 50 ETF (FFTY) rose 0.5% last week. iShares Enhanced Technology Software Sector ETF (IGV) rose 2.2% and regained its 50-day line. Cybersecurity carries his CRWD stock, and Qualys and Palo Alto are all IGV members. VanEck Vectors Semiconductor ETF (SMH) rose 2.3%, making NVIDIA stock the No. 1 stock. CDNS shares are in his SMH and IGV.
SPDR S&P Metals & Mining ETF (XME) fell 3.2% last week. Global X US Infrastructure Development ETF (pave) fell 0.4%. US Global Jets ETF (jets) fell 1.5%. SPDR S&P Home Builders ETF (XHB) fell 2.1%. Energy Select SPDR ETF (XLE) sold 5.2% and Healthcare Select Sector SPDR Fund (XLV) rose 1%, with LLY stock being the notable member. Industrial Select Sector SPDR Fund (XLI) fell 0.6%.
Financial Select SPDR ETF (XLF) fell 0.4%, joined by CME stock.
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Stocks in buy zone
Nvidia stock rose 2.4% to 457.62 on Friday, rising 5.2% for the week and breaking above its 50-day line, allowing for early entry. As of Friday’s close, NVDA stock has achieved a new benchmark with a buy point of 502.66.The stock price fell slightly on Friday night, as reported by the Information microsoft (MSFT) will debut an AI chip next month to reduce dependence on Nvidia GPUs.
On Friday, Meta stock rose 3.5% to 315.43, clearing the Cup with Handle buy point of 310.64 and entry of 312.87.
Arista stock soared 3.2% on Friday and is up 45.5% for the week to 194.02. The stock price cleared an early entry of 189.90. ANET stock currently has a flat base with a buy point of 198.70.
Eli Lilly stock rebounded from its 50-day line on Friday, rising 4.4% to 565.22, above its 21-day moving average. This created new purchasing opportunities. LLY stock fell below its 50-day line on Tuesday, but recovered on Thursday. Eli Lilly had a bullish outside week.
Qualis stock rose 4% on Friday to 160.97, clearing short-term resistance near 155 and the recent 52-week high of 157.88. This recent area can be seen as a de facto flat base, or a handle to a base dating back to September 2022.
CrowdStrike stock jumped 6.9% to 176.69 on Friday, jumping off its 21-day line on heavy volume and ending months of chaotic consolidation. However, CRWD stock ended 11.4% above its 50-day line.
On Friday, Palo Alto stock rose 4.2% to 246.69, rising sharply from near its 50-day line and clearing very short-term levels. The consolidated buy point for PANW stock is 258.88. However, investors may use the trendline near 254.23, or 250, as an additional early entry.
In a big week that engulfed the past two months of trading, CME stock soared 4.85% to 211.93. On Thursday, the stock rebounded from its 50-day line. On Friday, the stock cleared a flat-based buy point of 209.31, according to MarketSmith analysis.
Vertiv shares rose 6.9% for the week to $39.77, including a 4.2% rise on Friday. While the stock price rebounded from the 21-day and 10-week lines, it also cleared short-term levels, making early entry possible. VRT stock, one of the big winners of 2023, currently has a new flat base at a buy point of 40.41.
Cadence Design stock rose 3.9% to 243.95 on Friday, rebounding from its 50-day line and breaking the handle’s downtrend, suggesting an early entry. CDNS stock is targeting a buy point of 247.50 cup with handle.
Tesla stock jumped 4.1% on the week to 260.53. On Wednesday, the stock rose 5.9%, surging above its 50-day line and allowing for an early entry. The stock fell to its 50-day line on Friday morning, but rebounded to rise slightly. A move above Thursday’s intraday high of 263.20 could break the handle’s downtrend and provide another early entry. Tesla stock is 278.98 cup base with handle.
Amid all the seemingly bad news, Tesla has shown surprising strength. Earlier Monday, Tesla reported that third-quarter vehicle deliveries were significantly lower than expected. On Monday night, Tesla launched a new low-cost Model Y that costs $3,750 less than the previous base model. Late Thursday, Tesla lowered the price of its Model 3 and Model Y in the United States and also reduced the price of the Model Y in Norway.
Bulls are banking on the latest Model 3, which will soon begin deliveries in China and Europe, the upcoming Cybertruck, and more speculative long-term bets on self-driving, AI and robotics.
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what to do now
The stock market’s attempt to rally ended the week on a bullish note, with major indexes reversing gains on Friday and many leading stocks issuing buy signals.
Investors could and probably should have added some exposure on Friday. If the market continues to be strong, continue to shift away from cash, but do so gradually.
Remember that while stocks rebounded on Friday as Treasury yields came off their highs, market interest rates continue to rise. If the 10-year Treasury yield approaches 5%, it’s easy to imagine the major indexes falling again.
Therefore, be prepared to exit if the market or position starts to waver.
But this weekend is the time to prepare. Make sure your watchlist is up to date. Pay particular attention to stocks that are viable or close to viable.
Read The Big Picture every day to stay on top of market direction and key stocks and sectors.
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