Dow futures: Market rally is weak, but bulls are still in control here; Tesla reopens Shanghai

Dow futures tilted lower Sunday night, while futures for the S&P 500 and Nasdaq fell modestly. Viewing Tesla and CEO Elon Musk on Twitter is a focus.

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The stock market rally took further losses last week, as the Nasdaq led the declines as Treasury yields continued to rise. What is your game plan for the next week? Be wary of new purchases, focusing on leading sectors. Earnings season adds more uncertainty.

Tesla (TSLA) headlines during a big week of results, as the electric car giant is said to be aiming to restart its Shanghai factory on Monday. Meanwhile, Tesla CEO Elon Musk asked Twitter (TWTR) took another turn on Friday as the social media company enacted a “toxic pill” to thwart him. Tesla stock is working on cup with handle Point buying, but the chart is messy as profits are just one of the many risks being focused on.

Expedia (EXPE), Cheniere Energy (liquefied natural gas), merck (Mrk), Edwards Live Science (EW) And Check Point برنامج (CHKP) Five stocks close buy points A relatively strong market area.

LNG stockpile and Tesla is running IBD Leaderboard. Tesla stock is also on defect 50. Check point was IBD stock today.

The video included in the article discusses market activity this week and analyzes EXPE, Cheniere Energy and Check Point Software stocks.

Dow jones futures contracts today

Dow futures were down 0.1% against fair value. S&P 500 futures fell 0.3% and Nasdaq 100 futures fell 0.6%.

Crude oil prices rose slightly.

US stock markets are closed On April 15th for Good Friday. Exchanges in Europe, Australia and Hong Kong will remain closed on Friday, and will remain closed on Monday.

The People’s Bank of China on Friday lowered minimum reserve requirements for banks by 25 basis points from April 25 to boost the economy amid widespread shutdowns. But it kept the one-year medium-term loan rate steady at 2.85%, much to the surprise of most economists.

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

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stock market rise

The stock market rally has seen some big daily and intraday moves in a short week, but the overall trend is still down. The Dow Jones Industrial Average fell 0.8% last week stock market trading. The S&P 500 was down 2.1%. The Nasdaq Composite Index lost 2.6%. Small business Russell 2000 posted a profit of 0.5%.

The 10-year Treasury yield rose 12 basis points to 2.83%, the highest level since late 2018.

US crude oil futures rose about 9% to $106.95 a barrel last week. The New York Times reported Thursday that the European Union is drawing up plans to ban Russian crude, a painful economic move that Germany in particular has resisted. The EU reportedly won’t formally discuss a ban on Russian crude until the last round of the French presidential vote on April 24. If the EU continues to do so, crude oil prices may rise. The European Union is even more dependent on Russian natural gas.

ETFs

between the Best ETFsThe Innovator IBD 50 ETF (fifty) is down 0.2% last week, while the Innovator IBD Breakout Opportunities ETF (fit(It is up 0.8% in the ETF)IGV) sank 2.1%. VanEck Vectors Semiconductor Corporation (SMH) slipped 3.5%, threatening to undermine its 2022 lows.

Shares reflect more speculative stories, the ARK Innovation ETF (see you) and the ARK Genomics ETF (ARKG) Both fell 2.7% last week. Tesla stock continues to rank number one across the holdings of Ark Invest.

SPDR S&P Metals & Mining ETF (XME) rose 7.3% last week to a new high. Global Infrastructure Development Fund X US (cradle) made 1.4%. US Global Gates Foundation (ETF)Planes) went up 8%. SPDR S&P Homebuilders ETF (XHB) closed below the break-even point. SPDR Specific Energy Fund (SPDR ETF)XLE(Up 0.4% and the Financial Select SPDR ETF)XLF) down by 2.6%. SPDR Healthcare Sector Selection Fund (XLV) lost 2.9%, but from all-time highs.

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Tesla Stock

Tesla stock fell nearly 4% last week to 985, after losing more than 5% in the previous week. The handle has some depth, presumably shaking up some weak stockholders after TSLA’s strong stock run in late March. But the graph is deep and messy. A longer handle, and tighter action, would allow the major averages to keep catching up.

Tesla earnings are due Wednesday night. Investors can expect strong year-over-year growth, but they should probably look ahead. They will be looking for new clues about the Tesla Cybertruck, Semi, and other products. But they may not get it.

The Shanghai factory, which has been closed due to Covid restrictions since March 28, is said to reopen on Monday. Some employees will enter into a “closed loop” system and live on site. Production will start in one shift. Returning to full production will depend on the control of Covid within the plant. Suppliers and logistical challenges are also factors. In the best case scenario, Tesla will reach pre-lockdown production levels by mid-May.

Tesla will suffer a significant drop in production in the second quarter, even as its Berlin and Austin plants slowly increase. It’s unclear if the Shanghai shutdown will or will have an impact on production at Tesla Berlin, which gets batteries and some other parts from China.

Misk News Twitter

Meanwhile, Tesla CEO Elon Musk made an unofficial offer of $43 billion, and $54.20 per share. Twitter (TWTR) are also potential headwinds. If the Twitter holder buys, he may sell another portion of the TSLA stock to pay for it.

On Friday, Twitter’s board of directors enacted a “toxic pill” clause to make it difficult for Musk to buy the company. The ruling states that if any individual or company buys more than 15% of TWTR shares, other shareholders can purchase additional shares at a discount. Musk currently owns 9.1% of TWTR shares.

While Musk’s bid is much higher than where TWTR traded before he disclosed his stake, it’s well below Twitter’s all-time high of 80.75 set in February 2021.

Musk continues to blow up Twitter’s board, management, and practices with tweets. He is considering bringing in partners to showcase him on Twitter, according to multiple reports. That could reduce the number of Tesla shares he’ll need to fund the purchase.

stock to watch

EXPE stock rose 6.5% to 191.55 last week, reclaiming the 50-day streak. according to MarketSmith Analysis. Investors can use a downward sloping trendline from the top of the base to find an early entry around 195.

Expedia stock has a three-digit price-to-earnings ratio. High-value PE stocks haven’t performed well in recent months. However, with Expedia earnings expected to rise 364%, this may be an exception.

Travel stocks rose late last week Delta Airlines (DA) He said on his earnings call that travelers weren’t phased out by higher fares. Hilton Worldwide (HLT) And Marriott International (March) clears the official buy points Thursday, at least during the day, after crossing the early entry points on Wednesday.

The Relative force line As for EXPE stock, it is far from the consolidation highs, which is a potential concern. Marriott and Hilton RS lines are at or close to high levels. Relative strength lines, the blue lines in the provided charts, track the stock’s performance against the S&P 500 Index.

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LNG stockpiles

LNG stocks fell 3.2% to 139.53 last week, but bounced back from its 21-day moving average and 10-week streak. This is the second or third 10-week test of Cheniere Energy stocks, but investors can use it to start a small trade or add a few more shares. LNG stocks could be in the process of forming a new base. The RS line is just below the heights.

Cheniere Energy is expected to generate huge profits in 2022 with rising demand for LNG worldwide, especially Europe. The Russian-Ukrainian crisis is drawing more attention, although a Russian gas ban is not on the table at the moment.

Merckstock

Merck stock fell 0.9% to 86.91 last week, pausing after a steady rise in the right-hand side of a cup base. MRK stock has a buy point of 91.50 at the moment, but could have a handle on the daily chart after Monday, giving it an entry point at 89.58. Merck stock has an indicator on the weekly chart, but it is barely perceptible. Ideally, the Merck stock will form a slightly longer, deeper handle to eliminate weak mounts. But the RS line is at a 52-week high already.

Electronic Warfare Arrows

Edwards Lifesciences stock fell 3.15% to 120.02 last week. On the daily chart, EW stock has a cup with 131.83 buying points. After Monday, it could have a handle at 125.21 an official buying point. This handle is already present on the weekly chart. The RS line of electronic warfare inventory has already reached a record high as well.

Medical device and product makers should see higher demand as electrical procedures return as Covid wanes.

CHKP Stock

Check Point Software stock lost 4 cents to 142.78 last week, and has traded relatively tightly over the past few weeks. A CHKP stock in a consolidation state can be viewed as a flat base or shallow cup with handle. The purchase point of a mug with a handle is 145.64. A trend line sloping down from the March high would provide a slightly lower entry.

The current rule followed a long consolidation, arguably going back to the beginning of 2021.

Check out the tiny pips earnings growth. But CHKP stock has a low PE. Palo Alto Networks (bano), a faster-growing and top-notch cybersecurity play, also looks good.

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Market Rise Analysis

The stock market rally continues to grow more fragmented. The Nasdaq Composite is down strongly after falling below the 50-day line the previous week. The S&P 500, now below 200 days, fell below 50 days as well.

The commodity sector is broad and medical and defense companies are the leaders. Insurance companies and REITs are reasonably cohesive. Travel names are back again, with crude oil prices off their March highs, and consumers turning away from merchandise, ready to pay exorbitant prices.

But the Nasdaq lost more than half of its gains in late March. apple (AAPL) and the Tesla holds up well, but it doesn’t look particularly attractive either. As for the other mics, Microsoft (MSFT), nvidia (NVDA) and Google Parent the alphabet (The Google) is approaching its lowest levels recently. Amazon.com (AMZN) and father Facebook ID pads (FBStruggling for months.

The high rate environment is challenging for high value growth stocks. TSLA stock is emerging, but this market hasn’t addressed lone wolf growth.

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What are you doing now

The fork market rally, with some sectors rising and others falling, is a challenging trading environment. Investors need to focus on the leading sectors. But don’t get too concentrated in one particular area. One positive aspect of the travel stocks resurgence is that the sector is unrelated to the energy/commodity sector.

With commodity trading, you may look for pullbacks to moving averages as opportunities to initiate or add trades.

Depending on your trading style, you may want to take partial profits on stocks that are up 10% or 15%, to make sure you stay away from trades and make gains.

Don’t be stubborn. If your stocks are not performing, especially those in the lagging sectors, cut your losses and get out. You might think that the previous great growth leaders couldn’t fall any further, but as long as the stock is above zero, it can still drop 100%.

Keep building your watch lists. Buying opportunities can come and go quickly, while market conditions can change quickly. So you want to be ready.

Earnings season will start to pick up next week. Know when your holdings — or key competitors, supplies, or customers — are reporting results.

Read The Big Picture Every day to stay in sync 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.

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