Overnight, Dow futures fell slightly, along with S&P 500 futures and Nasdaq futures. The stock market’s bullish bid continued on Tuesday, as Treasury yields and the dollar tumbled amid hopes that the Federal Reserve might slow down interest rate hikes. TWTR stock jumps as Tesla CEO Elon Musk agrees to go ahead with $44 billion Twitter (TWTR) takes over.
Major indicators are moving higher, but they have not regained key levels or confirmed a new bullish attempt yet.
Megacaps apple (AAPL), Microsoft (MSFT), a parent of Google the alphabet (The Google) And the Amazon.com (AMZNAll of them made strong gains. But only Microsoft stock closed above its 21-day moving average.
Still, the leading stocks offer reasons to tip their toes into the market, or at least prepare.
Arista Networks (Network), Energy Enphase (ENPH), Paylocation (PCTY), on semiconductors (on me) And the Devon Energy (DVN) All in or approaching early buy points. If the market rally continues to gain momentum, these stocks should be actionable. Everyone has Lines of relative force At or near altitudes.
Paylocity stock on IBD Leaderboard Watch List Tuesday’s stock was from IBD. Microsoft and Google stock on Long-term leaders of IBD existing. Enphase, On Semiconductor and DVN stock on List of 50 IBD. The stock of ENPH, Onsemi and Arista Networks is located in IBD Big Cap 20.
The video included in this article highlights market action on Tuesday and analyzes PCTY, On Semiconductor and . stocks Neurobiological Sciences (NBIX).
Elon Musk says he’ll go ahead with Twitter deal
Musk agreed to move forward With Twitter’s $44 billion deal, valued at $54.20 per share. Lawyers for Musk and Twitter are scheduled to meet in an emergency Delaware court hearing in Chancery Tuesday night to discuss how to ensure the deal can close.
The Musk-Twitter saga isn’t quite over. Twitter has not accepted Musk’s latest terms, which make no real guarantees about his stated intention to move forward with the term. However, Musk may officially own the social networking site in a few days.
Musk’s Twitter trial was set to begin on October 17, with the Tesla CEO being seen as very likely to lose.
Twitter stock, which has been on hold for most of the session, rose 22% to 52 as Musk slipped. While TWTR stock traded well below the $54.20 buyout price, it significantly outperformed parent Facebook. meta pads (dead) And the Explode, Explode (Explode, Explode) in the past months.
Tesla (TSLA) rose 2.9% to 249.44, pulling back from intraday highs of 256.89 following the latest Musk-Twitter news. Investors may be wondering whether Musk will sell shares of TSLA to pay for the Twitter deal, even though he has already sold shares with the Twitter deal as the reason. In the longer term, Tesla stock investors may fear Musk’s interest will split further from the EV giant as he adds Twitter to his portfolio of companies. However, TSLA investors may be pleased to have the Musk-Twitter acquisition saga of the past.
Twitter stock was little changed in active after-hours trading. TSLA arrow is tilted down.
Dow jones futures contracts today
Dow futures are down 0.35% against fair value. S&P 500 futures were down 0.4%. Nasdaq 100 futures fell 0.4%.
stock market rise
The stock market rally followed Monday’s advance with solid gains on Tuesday, although major indexes retreated from intraday highs.
The Reserve Bank of Australia raised interest rates for the sixth consecutive month, but only unexpectedly by 25 basis points. This came on the heels of the Bank of England’s resumption of bond buying last week as the new British government’s budget disrupted the pound and UK debt.
The bid for a rally gained momentum at 10AM ET after a JOLTS report showed that job opportunities fell sharply in August, well below consensus. Federal Reserve Chairman Jerome Powell specifically referred to job openings as too high. While editorials and the number of workers leaving work remain high, the trend is Fed-friendly. On Friday, the Ministry of Labor will release September jobs report.
The Dow Jones Industrial Average rose 2.8% on Tuesday stock market trading. The S&P 500 jumped 3.1%. The Nasdaq Composite Index jumped 3.3%. Small cap Russell 2000 rose nearly 4%.
Shares of Apple rose 2.6%, while shares of Microsoft rose 3.4%. Both are members of the Dow Jones, S&P 500 and Nasdaq. Google stock jumped 3% while Amazon stock rose 4.5%. It all added to Monday’s solid gains, but it needs a lot of repair work.
US crude oil prices rose 3.5% to $86.52 a barrel. OPEC+ meets on Wednesday, with reports that the organization may cut production by one to two million barrels per day.
Gasoline futures jumped 6.8%, indicating another increase at the pump. Natural gas futures rose 5.7%.
The 10-year Treasury yield fell 3 basis points to 3.62%, after falling 15 basis points on Monday. For the second day in a row, the 10-year bond yield found support at the ascending 21-day line.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) gained 3.4%. iShares Expanded Technology and Software Fund (ETF)IGV) rose 3.8%, as MSFT stock was IGV Holdings Inc. VanEck Vectors Semiconductor Corporation (SMH) rose by 4.3%.
SPDR S&P Metals & Mining ETFs (XME) by 3.8%. US Global Gates Foundation (ETF)Planes) rose 7.1%. SPDR Specific Energy Fund (SPDR ETF)XLE) added 4.3%. SPDR Healthcare Sector Selection Fund (XLV) rose by 2.3%.
Stocks near the points of purchase
ANET stock rose 4.3% to 120.81, reclaiming its 200-day and 50-day lines, although volume was light. A decisive move above the 50-day line is likely to break a short downtrend. Arista stock is working on 132.97 buy pips of consolidation within a much longer base.
ENPH stock rose 0.6% to 288.55, but is down from 297.67 on the day. At its highest levels, Enphase stock retraced the 50-day and 21-day lines and broke through a short downtrend.
PCTY stock rose 3.55% to 252.33, rebounding from the 50-day streak in solid volume. Paylocity stock is on trend line entry, with a move above the September 28 high of 253.26 as a potential specific trigger point. according to MarketSmith Analysis.
ON stock jumped 6.4% to 68.92, reclaiming the 50-day streak, although trading was slightly below average. More strength could be seen onsemi shedding a trend line inside a new consolidation alongside a previous deeper base.
DVN stock rose 5.7% to 69.07, up from 50 days ago as it works on cup base with handle And 75.37 buy points. Devon’s arrow approaches a trend line inside the handle.
Market Rise Analysis
The stock market’s bull run continued, with strong gains again for the major averages. The Dow, S&P 500 and Nasdaq Composite rose above the 10-day moving average and approached the 21-day lines. The small-sized Russell 2000 kept driving and has already recovered 21 days.
All indicators still have some distance to reach their descending 50-day and 200-day moving averages, with mid-August tops forming another major resistance area.
Megacaps like Apple stocks are doing their part this week, but they still have a long way to go.
However, the blue-chip stocks outperform the major indices, with many stocks cracking, flashing early entries or moving into position for potential entries.
It could be argued that the stock market was due to a rebound. Clearly, declines in Treasury yields and the dollar helped drive this week’s gains in stocks. But if yields and the dollar resume their bullish trend, the market rally could quickly fade away.
While stocks rise on hopes the Fed will slow the pace of rate hikes, markets continue to price a fourth 75 basis point hike in November and a half point move in December.
Tuesday was the second day of the stock market rally for the Dow, S&P 500 and Nasdaq indices. a Follow-up day It could come later this week to confirm the new uptrend.
Some would argue that the Russell 2000 and S&P MidCap 400 staged “follow-up days” on Tuesday. It is a positive sign, but it will not lead to a change in the direction of the market. why? The success rate of FTDs is low not including Dow Jones, S&P 500 and Nasdaq.
A confirmed market rally may only signal the beginning of a tradable bear market rally against a long-term uptrend. The 50 day and 200 day lines will be the key levels to watch after the FTD.
What are you doing now
An attempt to rally in the stock market is gaining momentum, with a number of leaders making flashing buy signals. Investors can take some demo positions in some of the broad market stocks or ETFs. But anyone who jumps early should be prepared to jump at the same speed if the market recovery falters.
There is still nothing wrong with being almost or all cash.
But it is definitely a good time to work on your watch lists and pay close attention to the market. Look for high quality stock in action or soon.
Read The Big Picture Every day to keep up with the trend of the market, stocks and leading sectors.
Please follow Ed Carson on Twitter at Tweet embed For stock market updates and more.
You may also like:
“Infuriatingly humble alcohol fanatic. Unapologetic beer practitioner. Analyst.”