Dow futures: Market rally is gaining strength; 9 stocks to watch

Dow futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rally is trying to gain momentum, with the major averages rising sharply on Friday and throughout the week.




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United Health (United nations) , Shock Wave Medical (SWAV), Ulta Beauty (ULTA), Energy Enphase (ENPH), Sociedad Quimica y Minera (Square meters) , Quanta Services (PWR), Northrop Grumman (NOC) are the stocks to watch. They all have relative lines of force at or near elevations.

Shockwave stock broke out on Friday, as Ulta and PWR stocks are arguably making early entries. UnitedHealth, Northrop, SQM and ENPH stocks are not far from buying points.

Also Monitor a Google Parent the alphabet (GOOGL) and giant EV Tesla (TSLA). Google and Tesla stock are nowhere near old highs, but these massive bonds are rising above key levels after settling above May lows this month.

NOC stock is on the IBD Leaderboard, with PWR stock on the watch leaderboard. GOOGL stock is in IBD Long-Term Leaders. UnitedHealth, Ulta Beauty, SQM, and ENPH stocks are listed on IBD 50. UN and Ulta stocks are on IBD Big Cap 20.

UnitedHealth was the IBD stock today, Thursday. SQM was Tuesday’s stock.

Dow jones futures contracts 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 Jones 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’s bullish attempt made big weekly gains in a short week, as major indexes closed on Friday at their best levels.

The Dow Jones Industrial Average jumped 5.4% in stock trading last week. The S&P 500 rose 6.5%. The Nasdaq Composite Index rose 7.5%. Small cap Russell 2000 jumped 6%.

The 10-year Treasury yield fell 11 basis points to 3.12%, rebounding from just over 3% at Thursday’s lows.

US crude oil futures fell 0.3% to $104.27 a barrel last week, rebounding 3.2% on Friday.

Among the top ETFs, the Innovator IBD 50 ETF (FFTY) is down 1.5% last week, with commodity-related names weighing on the FFTY. The Innovator IBD Breakthrough Opportunity Index (BOUT) is up 1.7%. The iShares Expanded Tech-Software ETF (IGV) Index rose 10.3%. The VanEck Vectors Semiconductor Index (SMH) stood out at 5.1%.

The SPDR S&P Metals & Mining ETF (XME) is down 1% last week, even with a significant bounce on Friday. Global X US Infrastructure Development Corporation (PAVE) gained 3.6%. The US Global Jets ETF (JETS) jumped 5%. The SPDR S&P Homebuilders ETF (XHB) is up 7.6%. The Energy Select SPDR ETF (XLE) is down 2.6% and the Financial Select SPDR ETF (XLF) is down 4.6%. SPDR Healthcare Sector Choice Fund (XLV) rose 7.8%, with a major stake in UN stock.

Reflecting more speculative story stocks, the ARK Innovation ETF (ARKK) jumped 18.25% last week and the ARK Genomics ETF (ARKG) jumped 18.1%, both of which crossed the 50-day line. Tesla stock continues to dominate among Ark Invest ETFs.


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Stocks near the points of purchase

Shockwave stock rose 6.4% on Friday and 25% for the week to 197.69. That cleared a 194.41-cup buy point with a handle, with Friday’s move on above-average volume for SWAV stock. Shockwave Medical has been profitable in the past three quarters while revenue growth has been in triple digits for the past five quarters.

UnitedHealth stock jumped 9.6% for the week to 495.64, but fell below the 50-day line on Friday. UN stock has a double bottom base with 507.35 buy points, just above Thursday’s high. Many other health insurance company shares are created.

Ulta Beauty stock rose 3.7% Friday and for the week to 410.70. On Friday, stocks retraced the 50-day streak. It could be said that this was an aggressive entry show. The stock ULTA has an exotic-looking handle cup base with an official purchase point of 429.58.

ENPH stock advanced 7.4% to 198.39 last week. That’s above 193 buy points that are no longer valid, although investors may see an early entry here. Enphase stock is making a handle entry of 217.33. While solar stocks have been strong in recent weeks, Enphase and its peers tend to experience significant daily swings.

SQM stock fell 1.1% over the week to 89.28, but rebounded on Friday to reclaim the 50-day streak. The lithium giant, which also has significant exposure to the fertilizer market, posted a 27% gain recently. But a strong move above the 50-day line, which may exceed 21 days, would provide a strong entry. SQM earnings and revenue growth is exploding.

Quanta Services stock jumped 10.65% to 125.98, rebounding from the 200-day streak and above the 50-day streak. Arguably this provides a solid entry inside the base of a cup with a handle. The official buy-side point is 138.56 for PWR stock, according to MarketSmith analysis. Quanta provides infrastructure services for electrical utilities.

Northrop stock rose 4.45% last week to 463.70, roughly on Friday. This is back above the 50-day line. Iraq’s North Oil Company stock begins a new consolidation process after a failed break from the base of a Fenjan with a handle. A strong move from the 50-day line would provide an early entry. The old buy point 477.36 is no longer valid, but a lot of trading has been done near there over the past four months.


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Tesla Stock

Tesla stock jumped 13.35% for the week to 735.15, moving above its 21-day moving average. TSLA stock fell modestly below the 50-day line and early June, which roughly coincides at the moment. The EV giant still has a long way to go to reach the 200-day streak. But, for most of the big names, Tesla’s stock shows some rays of hope.

At the end of next week, Tesla will likely release production and delivery numbers for the second quarter.

google stock

Google’s stock is doing better, regaining its 50-day streak on Friday, near its early June high. Shares rose 10.1% over the week to 2,359.50. Google stock has a long way to go to reach the 200 day streak. This roughly coincides with a downward sloping trendline from February. 2 peaks from 3,030.93. This can provide an early or long-term leader entry.

Market Rise Analysis

Major indices rebounded after heavy losses for most of the month. This was the Nasdaq’s best week since mid-March, while the S&P 500 and Dow had their best week since the last full week of May. Keep in mind that after the rebound in late May, the market moved sideways for several sessions before dropping to new lows.

The Nasdaq showed a strong move on Thursday, but the trading volume ended in a partial decline. Also, the gains didn’t really stand out amid the recent big market moves, while the market suffered a lot.

On Friday, all major indexes made significant price gains in a broad and strong advance. Volume is up significantly thanks to Russell’s annual rebalancing on closing.

The Nasdaq Composite jumped above its 21-day moving average on Friday, along with the Dow Jones and S&P 500. Above, the 50-day line and early June highs loom as resistance.

A breakout above those levels decisively would provide stronger evidence that the recent rally is more than a tradable rally.

High inflation, Fed rate hikes, and recession fears remain major market headwinds.

The medical sector appears to be the strongest. Health insurers and some product makers such as UnitedHealth and Shockwave are emerging after several drugs triggered flashing buy signals. Chinese stocks have risen in recent weeks, but overall they look stretched or still recovering.

Commodity prices were hit hard, despite Friday’s rebound, reflecting recession fears.

Several winners last week were beaten


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What are you doing now

As the market rally gains momentum, investors can choose to add a bit of exposure, either through individual stocks or broad market ETFs.

There is nothing wrong with waiting for the follow-up day.

Of course, the market has seen several confirmed market spikes in 2022 which quickly reversed. Even after following through on the day, investors should still look to take partial profits and cut losses quickly.

Work on your watch lists. Focus on stocks that are actionable or so, but have a broader list of names that show relative strength, even if they are off-center.

Read the big picture every day to stay in sync with market trend, stocks and leading sectors.

Please follow Ed Carson on Twitter at Tweet embed For stock market updates and more.

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