The stock market rally showed increasing momentum last week, with all major averages making significant moves. Dow futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures.
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The leadership of the market recovery is still narrow, concentrated in the field of artificial intelligence, as well as chips and software. Many of these stocks are extended. But if market breadth continues to improve, a broader set of buying opportunities will develop.
actually, Tesla (TSLA) broke Friday. DexCom (DXCM), Linar (flexible) And c. B. Morgan Chase (JPM) flashes early entries late in the week. Marriott International (March) is also executable.
All reflect areas of possible leadership. Tesla shares join EV rivals like BYD (I will) in the purchase points clearing. DXCM stock is one of several medical products stocks trying to rally. LEN stock is among a number of homebuilders that have rebounded. JPM shares stand out among the financials, but the sector is rebounding. MAR stock is among the broadly rebounding travel sector.
Investors should look to increase exposure amid the promising bullish turn. But be prepared to backtrack.
while, apple (AAPL) is expected to show off its mixed reality headset on Monday, its first new hardware product since the Apple Watch in 2015. The headset will take on competitors like Meta Quest from Meta platforms (meta). Apple stock is close to passing its January 2022 highs and approaching the $3 trillion market cap.
Tesla shares joined IBD Leaderboard On Friday, join Meta shares. LEN stock joined SwingTrader on Friday. Lennar was IBD stock 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 that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
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Stock market rise
The stock market rally showed strong and broad gains, especially late in the week.
The Dow Jones Industrial Average jumped 2% in stock trading last week. The S&P 500 rose 1.8%. The Nasdaq Composite Index rose 2%. Small cap Russell 2000 jumped 3.3%.
The 10-year Treasury yield fell 13 basis points to 3.69% for the week, but rose 8 basis points on Friday.
US crude oil futures fell 1.3% to $71.74 a barrel last week, even with Friday’s rebound of 2.3%.
Exchange Traded Funds
Among the ETFs, the Innovator IBD 50 ETF (fifty(up 3.6% last week, while the Innovator IBD Breakout Opportunities ETF)fit) gained 1.7%. iShares Expanded Technology and Software ETF (IGV) increased by 2.1%. VanEck Vectors Semiconductor Corporation (SMH) decreased by 0.8%.
Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark(Jumped 6.45% last week and ARK Genomics ETFs)ARKG) jumped 4.9%. Tesla stock is the number one stock ETF held by Ark Invest. Cathie Wood’s Ark also owns some shares of BYD.
SPDR S&P Metals & Mining ETFs (XME) rebounded 4.2% last week. Global Infrastructure Development Fund X US (cradle) popped up by just over 3%. US Global Gates Foundation ETF (Planes) climbed 3.1%. SPDR S&P Homebuilders ETF (XHB) jumped 3.5%. Energy Defined Fund SPDR ETF (xle) an advance of 1.4%. SPDR Health Care Sector Selection Fund (XLV) 2.2%. DXCM stock is in XLV.
SPDR Financial Selection Fund (45) rose 2.15% in a bullish week outside. JPM stock is a major component of XLF.
SPDR S&P Regional Banking ETF (Creates) jumped 4.8%.
Top five Chinese stocks to watch now
Apple Mixed Reality Headset
Apple will showcase its latest hardware and software innovations in a keynote presentation Monday at 10 a.m. PT at its annual Worldwide Developers Conference. It will detail the latest operating systems for iPhone, iPad, Mac, Apple TV and Apple Watch. But the fuss is about a mixed reality headset, possibly called Reality Pro. It will be the first new hardware product since the Apple Watch debuted in 2015. The expected $3,000 price tag may deter buyers. Meta platforms (meta) recently launched the newest Meta Quest headphones.
Apple stock rose 3.15% last week to 180.95. This is just below the January 2022 peak of 182.94.
Tesla stock
Tesla stock jumped 10.8% to 213.97 for the week, including a 3.1% rally on Friday. Stocks cleared the 200 day moving average on Tuesday. On Friday, TSLA stock crossed the 207.89 buy point of what is either a cup or a double-bottom base. The EV giant has surged in volume above average for five straight sessions, after just a few such days in the previous three months.
Meanwhile, BYD stock rose 5.6% to 31.50 for the week. Friday’s gain of 2.3% pushed China’s EV and battery giant back above the 31.17 cup handle buy point initially cleared on May 10. On Thursday, BYD reported record deliveries in May, surpassing their peak in late 2022.
Tesla now says its base Model 3 gets a full $7,500 tax credit in the US, along with all other Model 3 and Model Y cars, according to reports late Friday. It’s not clear how, but Tesla may now be using 2170 cells made at the Nevada site versus LFP batteries made in China.
Other stocks near buy points
DXCM jumped 6.5% to 122.57 last week. On Thursday, DexCom retraced the 50-day line, then added to Friday’s gains in above-average trading volume. View this early entry. The continuous glucose monitor maker has a bid point above 126.44 in a new flat base, next to two other mergers, according to MarketSmith analysis. Many other medical product and system makers are worth watching, including Shockwave Medical (SWAT) And Intuitive surgery (ISRG).
LEN rose 3.6% to 112 on Friday, bouncing back above the 50-day line, providing a solid entry into the emerging consolidation. On Wednesday, Lennar stock fell to test an earlier buy point. Several other homebuilders posted bullish price gains on Friday, but LEN stock moved by volume.
JPM stock jumped 3% to 140.47, closing right to the downside in a new flat base next to the previous consolidation. It is not extended from the 50-day streak either. JPMorgan looks healthier than other banks, but bank stocks made upward movements on Friday.
MAR stock rose 3.55% to 177.22 on Friday after retracing the 50-day line on Thursday. It can be said that Marriott is offering early entry from an emerging flat base. Royal Caribbean (RCL) is trending higher, but most other travel stocks like Marriott, are trying to take off after fits and starts.
Market rally analysis
The stock market rally showed more strength this week, with some optimistic signs of improvement in range and leadership.
The Nasdaq index continued to strengthen, hitting a 13-month high on Friday. But the past week has been more than just AI plays.
The S&P 500 has decisively cleared its 2023 range and is nearing its August 2022 peaks.
The Dow Jones, which had been testing the 200-day line for most of the week, jumped above the 50-day line on Friday. The Russell 2000, which broke below the 50-day line on Wednesday, rose to its best since early March, crossing the 200-day line for the first time since then, too.
First Trust Nasdaq 100 Equal Weighted Mutual Fund (QQEW) rose 1.4% for the week to a 52-week high.
Invesco S&P 500 Equal Weight Fund (RSP) increased by 1.9% during the week. Friday’s gain of 2.2% pushed the RSP clearly above the 50-day and 200-day lines, breaking the downtrend that dates back to early February.
The applicants defeated the losers on Thursday and Friday. On Friday, the winners led more than 5-to-1 on the New York Stock Exchange and about 3-to-1 on the Nasdaq. However, the long-term trend has been weak. And the downtrend A/D line is critical.
The Nasdaq and the Nasdaq 100 have been extended, with the latter now 9.5% above the 50-day line. Ideally, big company technologies, especially AI games, might slow down or pause while other sectors progress. That was the general pattern on Friday, as the Dow Jones, Russell 2000 and RSP index handily outperformed the Nasdaq 100’s 0.75% gain.
This creates some buying opportunities, such as Tesla, Lennar, DexCom, and JPMorgan.
Of course, two strong days do not guarantee a major advance in the market. From a macro perspective, the debt ceiling is no longer a concern. The Fed, which seemed destined for a rate hike on June 14 just a few days ago, seems about to pause. With earnings season (finally) over, the news cycle may have a relative lull.
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What are you doing now
As the market picks up and starts to expand, investors need to pay attention. Yes, this could be another fake header. A narrow advance could resume, or worse, it could collapse or collapse the overall market rally.
But for now, the market is sending bullish signals. If you wait for an undeniably strong bull market to consolidate, all the blue-chips will be extended nicely.
Investors should look to increase exposure, especially if they are mostly cash. But do it gradually to reduce the impact of sudden market reversals.
It is important to be flexible. And just as you don’t want to get caught up in a bearish mindset, don’t be a blind bull if the broader market or your positions falters.
This is an important time to build your watchlists. Have a selection of stocks to focus on, but be sure to build a wide network to keep tabs on a wide range of potential leaders.
Read the big picture every day to stay in sync with market trend, leading stocks and sectors.
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