Dow futures tilted higher early Thursday, along with S&P 500 futures and Nasdaq futures. The stock market rebound bounced strongly on Wednesday, with the Nasdaq ending a seven-day decline while energy prices tumbled and Treasury yields tumbled. The major indicators are once again moving towards their 50-day moving averages, but they are facing this big test.
apple (AAPLIt unveiled its new iPhone 14 and many other products. Solar stocks continued to lead. Energy Enphase (ENPH), Matrix Techniques (I see), Schulz Technologies (SHLS), sunron (Being) and the Invesco Solar ETF (tan) All buy signals flashed on Wednesday.
Apple unveils iPhone 14 and iPhone 14 Plus on Wednesday at a “Far Out” product event, along with new Apple Watch and Air Pod options. Apple iPhone 14 and other products have long been anticipated and largely offer incremental improvements. The new iPhone will have emergency satellite communications capabilities. The big surprise? Apple iPhone prices are not going up.
Apple stock rose 0.9% to 155.96, still below the 50-day streak. Above that, AAPL will need to clear its 200-day average before moving towards 176.25 buy point.
TWTR stock jumped Wednesday after a Delaware Chancery court rejected Elon Musk’s bid to delay the Twitter takeover trial, set to begin in October. But it will allow him to add the whistleblower’s recent allegations to the counterclaim. Twitter is suing Musk to force him to end the acquisition. Musk has declined to pay $44 billion, or $54.20 per share, and is trying to get out of the deal. Legal experts continue to view Twitter as having a strong case, with the comments and rulings of a Delaware judge corroborating this argument.
Twitter stock jumped 6.6% to 41.21 on Wednesday, breaking the 50-day and 200-day streaks. TSLA stock rose 3.4% to 283.70, bouncing off the 50-day streak but still below some other key levels. A decisive move above the 200-day line and short-term tops will provide a solid entry.
Added TAN, Invesco Solar ETF SwingTrader And it was Wednesday IBD stock today. RUN stock was the stock of the day for Tuesday. Enphase and Tesla are on defect 50. ENPH stock is also on file IBD Big Cap 20.
Dow jones futures contracts today
Dow futures are up 0.1% against fair value. S&P 500 futures rose 0.1% and Nasdaq futures added 0.2%.
Crude oil jumped 1% and natural gas futures rose slightly.
The 10-year Treasury yield fell to 3.23%.
stock market rise
The stock market rally started on Wednesday and didn’t change much but gained momentum throughout the day.
The Dow Jones Industrial Average rose 1.4% on Wednesday stock market trading. The S&P 500 jumped 1.8%. The Nasdaq Composite Index jumped 2.1%. Small cap Russell 2000 rose 2.2%.
US crude oil prices fell 5.7% to $81.94 a barrel, the lowest close since January 11. Natural gas futures extended their decline, down 3.7%. While these declines reflect economic weakness, among other factors, they point to further significant declines in headline inflation at least in September.
The 10-year Treasury yield fell 7.5 basis points to 3.265%, after rising 15 basis points on Tuesday.
Markets are locking in a third consecutive Fed rate hike of 75 basis points on September 21, although the August CPI is due next week. Markets are currently anticipating a half-point hike in the Federal Reserve in November and a quarter-point hike in December.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) rose 0.3%, as energy names had a negative impact. The Innovator IBD Breakout Opportunities ETF (fit) rose 1%. iShares Expanded Technology and Software Fund (ETF)IGV) popped 2.1%. VanEck Vectors Semiconductor Corporation (SMH) made 1.6%.
SPDR S&P Metals & Mining ETF (XME) by 0.9% and the US Global X Fund for Infrastructure Development (cradle) 2%. US Global Gates Foundation (ETF)Planes) increased by 3.5%. SPDR S&P Homebuilders ETF (XHB) rebounded 2.8%. SPDR Specific Energy Fund (SPDR ETF)XLE) Sinking 1.2% and Financial Select SPDR ETF (XLF) rebounded by 2%. SPDR Healthcare Sector Selection Fund (XLV) rose 1.6%
Enphase stock jumped 8% to 316.31 on Wednesday, making a new high as it extended its recovery from its 21-day streak. Stocks have been holding tight in recent weeks and were on the verge of forming a firm base ahead of Wednesday’s move. ENPH stock has now jumped x% so far in this short week. Investors can still buy Enphase, even though it’s nearing its 21-day extension. It spans well from 50 days.
The line relative force It hit new highs, reflecting the strong performance of Enphase stock against the S&P 500.
ARRY stock rose 6.1% to 22.03, rebounding from 21 days ago. Investors can use that as an early entry for a solar ground mounting system maker, or wait to see if Array can break the downtrend in a knob in a very deep cup base. The official purchase point is 24.10.
SHLS stock jumped 7.6% to 27.76 on Wednesday, extending its bounce from its 21-day streak and reaching a 2022 high, providing a solid entry.
RUN stock rose 10.5% to 36.58, rebounding from its 21-day moving average and breaking the downside of the short consolidation. This provided an early entry into the Solar Installer Specialist. On Tuesday, Sunrun stock found support just above the 10-week moving average.
Invesco Solar ETF TAN stock jumped 6.2% to 87.46, moving above the 21-day line and breaking above the downside for a short consolidation in higher volumes. That continues Tuesday’s bounce off the 50-day line. The capital of the TAN ETF is ENPH stock, with Sunrun, Shoals and ARRY components as well.
The TAN ETF has big moves, but is less risky and volatile than buying individual solar stocks.
Market Rise Analysis
A stock market rally that didn’t quite end showed some signs of life, with the Nasdaq losing seven straight sessions as the major indexes rebounded. However, trading volume decreased versus the previous session on both the Nasdaq and the New York Stock Exchange.
It can be argued that the market was late for the recovery after losing a lot of ground in a short period. But this does not mean that the downward pressure is over. If the stock market continues to bounce, the major indicators will soon enter the 50-day and 21-day moving averages. Moving decisively above those levels would be a good first step. But the 50-day streak has been a cap recently.
Above all is the 200-day moving average.
One reason for the stock market’s rebound on Wednesday was the modest decline in Treasury yields, after rising on Tuesday. But the uptrend in Treasury yields remains intact.
Solar stock is hot, while pollution control names are being cleaned up. Health insurance companies, some retail names sound strong. However, driving is relatively tight at the moment.
Oil and gas names have suffered significant losses in crude oil and natural gas.
What are you doing now
Investors who chose not to act on Wednesday had good reasons. A one-day bounce in a downtrend below a major support level is hardly a completely clear signal.
On the other hand, there were many buying opportunities on Wednesday. But investors who have stepped into some of these names may want to consider taking a partial profit quickly, perhaps with an initial sell-off at a 5% profit or if the major indices reach their 50-day lines. This could help mitigate the very real risk that major indexes will soon resume their downtrend, along with potential sector rotation or stock-specific news.
If new deals start to conflict with you, hurry to act. If you’re going to get aggressive in entering a questionable mass market, you need to be just as fast, if not faster.
Whether you add exposure on Wednesday or not, buying risks could be higher in the very near future. The market rally has bounced back, while the 50-day line is now a lot closer.
Keep working on watch lists. Look for stocks with strong relative strength. If the market builds momentum and removes some initial obstacles, such as the 50-day line, a number of stocks with strong RS lines will flash buy signals.
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