The market rally is holding key levels, but this one has been tough; Tesla’s woes continue

Dow futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures.


The overall stock market rally has eased from last week’s steam, but major indices have found support at key levels. However, many promising stocks pulled back soon after crossing buy points. Investors should follow some rules of the current trading environment, from maintaining light exposure to partial profit taking.

Vertex Pharmaceuticals (VRTX), Charles Schwab (SCHW), energy superiority (Which) and CALX stocks are executable, while Celsius (CELH) is setting up.

Vertex stock and CELH are available on file List 50 IBD. VRTX stock is also in IBD Big Cap 20. calyx (CALX) was on Friday IBD stock todaywith Excelerate Energy and SCHW stock picks earlier in the week.

One stock that is not holding up well is… Tesla (TSLA). Tesla stock fell last week, breaking new bear market lows on Friday.

Dow jones futures today

Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.

Remember to work in overnight Dow Jones futures contracts and elsewhere that does not necessarily translate into actual trading in the next regular session Stock market session.

Join IBD experts as they analyze actionable shares in the bullish stock market on IBD Live

Stock market rise

Outside the Dow, the stock market rally showed modest losses after last week’s big gains, although there was an insignificant pullback from Tuesday’s highs to Thursday’s lows.

The Dow Jones Industrial Average posted partial gains last week Stock market trading. The S&P 500 fell 0.7%. The Nasdaq Composite fell 1.5%. Small-cap Russell 2000 shed 1.7%.

The 10-year Treasury yield rose 1 basis point to 3.82%, after falling to 3.69% on Wednesday.

US crude oil futures fell 10% last week to $80.08 a barrel. No Covid signals from China and hawkish Fed comments raised concerns about demand. Natural gas prices increased by 7.2%.

Exchange Traded Funds

between the The best mutual fundsThe Innovator IBD 50 ETF (fifty(down 1.1% last week, while the Innovator IBD Breakout Opportunities ETF)fit) decreased by 0.2%. iShares Expanded Technology and Software ETF (IGV) fell 3.55%, with cloud software names being hit hard. VanEck Vectors Semiconductor Corporation (SMH) fell 0.65%, to hit resistance at the 200-day line.

Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark(down 9.5% last week and the ARK Genomics ETF)ARKG) decreased by 11.1%. TSLA stock is a major holding via Ark Invest’s ETF.

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SPDR S&P Metals & Mining ETFs (XME) fell 1.9% last week. Global Infrastructure Development Fund X US (cradle) decreased by 0.1%. US Global Gates Foundation ETF (Planes) fell 2.9%. SPDR S&P Homebuilders ETF (XHB) decreased by 3%. Energy Defined Fund SPDR ETF (xle(losing 1.6% and the Financial Select SPDR ETF)XLF) fell 1.4%. SPDR Health Care Sector Selection Fund (XLV) 0.9%. VRTX is part of the XLV box.

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Stocks near buy points

VRTX stock rose 3.75% to 314.63 last week, regaining 306.05 Point purchase From Flat base, part of a base-on-base formation. Biotech fell during the day on November 11th, as medical stocks were pressured, but pared losses. The line of relative strength From recent highs but has shown steady progress throughout the year. Vertex earnings growth continues to be strong.

SCHW rose 2.45% on Friday to 79.81, breaking the downtrend of the handle, making an early entry. The official buy point is 81.18 from nine months deep mug with handle Base. However, the handle also formed above a low entry point at 77.51.

EE rose 2.7% to 27.17 on Friday, also breaking the handle’s downtrend. The April IPO has 28.49 official buy points for the cup with handle, according to MarketSmith Analysis.

CALX stock jumped 6.6% to 69.82 on Friday, bouncing higher from the pullback to the 21-day moving average. The decline followed a profit gap after several weeks of tight trading. Calix’s profits are still declining, but government funding for rural broadband is expected to drive future growth.

Celsius stock rose 3.9% to 96.99 last week, but reversed lower on Friday. That could be good news. The energy drink maker has a solid 118.29 Buy. Stopping here might make a lower entry, though it’s too low to handle adequately. The 50-day line is still sliding for CELH stock but the 10-day and 21-day lines are crossing above this key level.

Tesla stock

Tesla stock fell just over 8% to 180.19 last week, and it slid to a new bear market low of 176.55 on Friday. This followed declines of 5.5% and 9.2% in the previous two weeks, and has continued to decline sharply since late September.

It’s a tough environment for strong growth stocks, especially electric vehicle makers. Tesla has some concerns about demand as production swells and competition intensifies. It has lowered prices in China, with further cuts likely as subsidies end on December 31st. Meanwhile, the “Twitter circus” remains a concern. CEO Elon Musk’s chaotic rule in just three weeks threatens to damage the Tesla brand.

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Tesla is still growing at a strong rate, while new US subsidies should boost demand at home in 2023.

But TSLA stock has gone through multi-year stretches of decline or decline. So while the EV giant could rally again, investors should wait for the chart to set up again. This may take a long time.

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Market rally analysis

The stock market rally had a bearish week. After last week’s big rally backed by the CPI, the indices initially rose, but then pulled back from Tuesday’s highs, and tested key levels on Thursday. But stocks have rebounded modestly from Thursday’s lows.

The market pause wasn’t much of a surprise given the recent sharp gains, and with the S&P 500 nearing its 200-day line. Holding the support areas is positive, while the Nasdaq 21-day line is about to cross above the 50-day level. Assuming the indices maintain those levels and eventually move higher, this will be a constructive week for the major indices.

But it was a frustrating week for the blue chips. Quite a few stocks broke or flashed buy signals early in the week. But as the indexes slipped, many of these names quickly slipped to the bottom of the entries. Some may rebound quickly or crop up soon, but that will likely depend on the market.

Energy stocks have had a rough week as crude oil prices slumped, although LNG stocks play an exceptional role.

Medical stocks, which have been under pressure with defensive growth names, rebounded this week. This includes VRTX stock as well as many biotechnology and health insurance companies.

Networking companies like Calix, some financial companies like Schwab, building materials and a number of sectors still look interesting.

Aggressive growth has not had a good week. This includes Tesla shares, cloud software, and ARK-type names. CELH stock was an exception.

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Investing rules for this marching market

Investors should always have sound trading rules in place. But the current challenging rally in the market means that investors should focus on light and flexible trading. Here are seven tips.

Keep Exposure Light: This is not a crazy bull market. Investors should be on board with this rally, but this is no time to be on the sidelines.

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Gradually add exposure: Do not intensify exposure quickly. Buying a bunch of stocks, say, on Tuesday, would result in quick losses from the resulting downturn in the market. Gradually let the market attract you.

Look for early entries: Breakouts struggled in 2022, in part due to volatile markets and sector rotation. By the time a stock reaches a traditional buy point, especially from a deep base, it may be due for a pullback. Early entries provide an opportunity to get into promising stocks before the mini-halt.

Partial profit taking: Due to the up-and-down nature of the current bullish trend, investors should consider taking partial profits quickly. This can give you the confidence to let the remaining situation ride. Know the nature of your possessions. Some stocks are more prone to big, volatile moves, with partial earnings being particularly important.

Find your line in the sand: You must enter a trade knowing where you are going to exit, either in full or at large. If the stock advances, you can raise your stops.

Leadership diversity: While it’s a good idea to focus on a small number of holdings, don’t focus too much on a particular sector or topic. The alternation of sectors has hit defensive and defensive growth in turn over the past several days. Try to get leading stocks from diverse backgrounds.

be ready: If you want to buy the best stocks, in the early entries, you have to do your homework. Work on screens to build your watchlists. Focus on specific names that are “ready” or thereabouts, but also have an extensive list of high-quality stocks that are starting to roll out.

Read The Big Picture Every day to keep up with the market trend, stocks and leading sectors.

Please follow Ed Carson on Twitter at @employee For stock market updates and more.

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