Dow futures were little changed after hours, along with S&P 500 futures and Nasdaq futures.
The stock market rally showed mixed action on Tuesday, with the Dow Jones rising, and the Nasdaq and S&P 500 falling somewhere in between.
On the plus side, the Dow Jones giant Larva (Cat), monastery (DE), ATI (ATI), Freeport McMoRan (FCX) And the Schlumberger (slb) are industrial, mineral, mining and energy toys in or near Buy points. Commodity prices rose strongly on Tuesday, helped by China’s continued pushback on Covid restrictions.
Dow jones futures today
Dow futures contracts were fixed against fair value. S&P 500 futures changed little. Nasdaq 100 futures fell 0.1%, with TSLA stock extending losses overnight.
Stock market rise
The stock market rally saw a mixed session, as industrial and metal stocks held up or rallied while struggling to grow.
The Dow Jones Industrial Average rose 0.1% on Tuesday Stock market trading. The S&P 500 fell 0.4%, and Tesla stock was the worst performer of the day, followed by Moderna and Nvidia. The Nasdaq Composite fell 1.4%. Small-cap Russell 2000 shed 0.7%.
Apple shares fell 1.4% to 130.03 points. On the day, the AAPL index reached 128.76, crossing the bear market low.
Tesla shares fell 11.4% to 109.01, the worst one-day loss in 11 months, amid the closure of a factory in Shanghai, Weak China sales data and other news. TSLA stock has now collapsed 44% this month just to its lowest level since August 2020. Volume has been very high all month, suggesting institutional selling.
TSLA stock fell about 2% in extended trade.
Nvidia stock fell 7.1% to 141.21, breaking below the 50-day line. NVDA stock is down 19% from its December 13 high of 187.90.
MRNA fell 9.5% to 180.17, falling below 188.75 mug with handle Point purchase, according to MarketSmith Analysis. Moderna broke out of that base on December 13 on bullish Cancer Vaccine Test data, rising 20% that day and hitting 217.25 in the following session. But MRNA stock edged out with a gain of 15% and more.
ENPH stock fell 6.6% to 274.54, and is now well below the 50-day line after cutting through that level on Friday.
US crude oil prices fell 3 cents to $79.53 a barrel, after crossing $80 Tuesday morning.
The 10-year Treasury yield jumped 11 basis points to 3.86%, after rising 27 basis points last week.
Exchange Traded Funds
between the The best mutual fundsThe Innovator IBD 50 ETF (fifty(down 0.5%, while the Innovator IBD Breakout Opportunities ETF)fit) jumped 0.7%. iShares Expanded Technology and Software ETF (IGV) declined 0.6%. VanEck Vectors Semiconductor Corporation (SMH) decreased by 1.8%. NVDA stock is one of SMH’s most important holdings.
US Global Jets ETF (Planes) fell 1.3%. Homebuilders SPDR S&P (XHB) decreased by 0.3%. Energy Defined Fund SPDR ETF (xle) advanced 1.1%, and SLB stock was a major component. SPDR Financial Selection Fund (XLF) was just below the break-even point. SPDR Health Care Sector Selection Fund (XLV) concession of 0.3%.
Reflecting stocks with more speculative stories, the ARK Innovation ETF (ark) by 4.15%, marking its lowest level in five years. ARK Genomics (ARKG) rose 3.8%, to close at the lowest level in the bear market for the month of June. Tesla stock remains a major holding via Ark Invest’s ETF.
Stocks to watch
Caterpillar stock rose 1.4% to 243.14, closing 239.95 points Buy from a Flat base next to depth cup base. Breakouts have struggled over the past year, but the deep 6% rule reduces the risk somewhat. the line of relative strength He is at his best in nearly 10 years.
Deere fell 0.2% to 436.15, and is still close to the 21-day line, with the 10-week line catching up. DE stock traded tightly after a strong run. It is on its way to having a shallow flat base at the end of the week with a buy point of 448.50. A move above the 444.51 December 21 high would provide an early entry in Deere stock. The RS line for DE stock is at a record high.
ATI stock jumped 3.8% to 31.45, bouncing off the 10-week line and hitting a trend line entry. The official buy point is 31.84 from the handle. The RS line for ATI is at a three-year high.
Freeport-McMoRan stock rose just over 2% to 38.88, rebounding from the 21-day and 10-week lines. This provides an early entry from a long and deep cup handle base with a buy point of 41.26. FCX stock has not yet extended from the 50-day line, which just crossed 200 days
Schlumberger stock jumped 1%, to 53.50, which is 56.14 points long from a short base. SLB stock broke the trend line entry and is still close to the 21-day and 50-day lines.
Market rally analysis
The stock market rally showed mixed and divided moves in Tuesday’s session.
Dow Jones once again found support at the 50-day line, but hit resistance at the 21-day line.
The S&P 500 lost more ground against the bullish 50-day line.
Invesco S&P 500 Equal Weight Fund (RSP) rose partially, briefly topping the 50-day line, while reducing the impact of Tesla, Nvidia, Moderna and Enphase.
The Nasdaq slid on Tuesday, nearing its lowest levels during the day on Thursday. The compound flirted with a bear market close lower.
In addition to industrial, metal, mining, and energy plays such as Caterpillar, Schlumberger, and FCX stocks, several medical plays are doing well. Housing stocks, from builders to materials to retailers, are also showing strength, along with some retailers. China’s internet is booming as the economy opens up.
But growth and technology stocks look bad overall.
The uptrend is under pressure which is also a mixed rally in the market amid massive macro uncertainty, is unstable and risky. And that’s before individual stock risk.
Real economy names will likely drive technology into a stock market rally in 2023, especially if the Federal Reserve backs off and economic headwinds. Or, technology and growth stocks could drag the broad market back towards lower lows. Or the major indices could deviate in a sideways direction with a large turnover in the sector to stretch.
What are you doing now
The stock market rally is still pending. Parts of the market are doing well, with the uptrend showing increasing divergence.
A smart investor could try buying, say, CAT, ATI, or Schlumberger stock. But the exposure should be light, and any new poses should be small. Investors can also play sector or topic via ETFs such as XME, XLE, OIH or XLI.
There is nothing wrong with not taking on any new positions, or even being entirely cash.
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