Market Rally Makes a Big Move, 9 Flash Buy Signals for Stocks; Tesla electric car price war

Dow futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures.


An attempted rally in the stock market ended strongly on Friday, with major indexes moving sharply higher on the December jobs report and the ISM services index.

ELF Beauty (dwarf), slb (slb), Larva (Never), Rio Tinto (Rio), I reckon (ATKR), Kosovo Liberation Army (Kosovo Liberation Army) c, United Therapeutics (UTHR), Insulate (PODD), And TJX (TJXBuy signals erupted or flashed or were actionable.

commercial minerals (CMC) reports before opening. CMC stock jumped last week, bouncing off the moving averages and clearing a narrow area. But CMC’s upcoming earnings added a lot of risk.

After the Friday market closes, Messi (M) be warned that fourth quarter holiday sales will be at the low end of the views. He expects consumers to continue to be under pressure in 2023. Macy’s stock fell more than 4% late Friday, as many other retailers fell.

Shares of ELF Beauty and CAT joined IBD Leaderboard On Friday, with UTHR stock on the leaderboard watch list. ATKR stocks and trading metals are located in List 50 IBD. KLAC stock is located at IBD Big Cap 20.

ELF Beauty was IBD stock for Friday. United Therapeutics and RIO stock picked up earlier in the week.

while, Tesla (TSLAChina’s electric vehicle market was rocked by sweeping price cuts on Friday in the wake of weaker-than-expected sales there. Tesla stock fell for the week but reversed higher on Friday. Tesla’s move may hit its profit margin, but it will help the EV giant face prosperity BYD (BYDDF), which brings increased profits. BYD stock fell on Friday but still had a solid week. China’s EV startups such as New (nio), Lee Otto (L.I) And XPeng (XPEV), which has been losing money, faces an even more severe challenge. Nio, Li Auto and Xpeng shares fell on Friday but posted weekly gains.

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

Join IBD experts as they analyze actionable shares in the bullish stock market on IBD Live

Stock market rise

The stock market’s new rally looked fragile most of the week, but then rebounded strongly on Friday.

Some strong labor market data weighed on the major indices, but Friday’s jobs report had some soft items, especially cooler wage growth. Also, the ISM services index showed a significant decline, which indicates that the economy will slow significantly.

The Dow Jones Industrial Average rose 1.5% in the past week Stock market trading, along with the S&P 500. The Nasdaq Composite Index rose 1%. Small cap Russell 2000 rose 1.8%. All indices’ gains, and then some, came on Friday.

The 10-year Treasury yield fell 26 basis points, to 3.57%. The odds of a quarter-point rate hike by the Fed on February 1 are at 74%. Markets are also betting on a quarter point move in March, to the 4.75%-5% range. Markets are not pricing in any further increases, despite Fed expectations of over 5%.

US crude oil futures fell 8.1 percent to $73.77 a barrel last week. Natural gas crashed 17%.

Exchange Traded Funds

between the The best mutual fundsThe Innovator IBD 50 ETF (fifty(up 0.55% last week, while the Innovator IBD Breakout Opportunities ETF)fit) by 1.2%. iShares Expanded Technology and Software ETF (IGV) 0.9%. VanEck Vectors Semiconductor Corporation (SMH) increased by 4.3%, and regained the 50-day line.

SPDR S&P Metals & Mining ETFs (XME) jumped 6.1% last week, with a bullish bounce from all of its major moving averages. Global Infrastructure Development Fund X US (cradle) figured 3.1%. US Global Gates Foundation ETF (Planes) climbed 7.9%. SPDR S&P Homebuilders ETF (XHB) rebounded 5.5%. Energy Defined Fund SPDR ETF (xle) rose 0.1%, with Securities Borrowing and Lending was a prominent component. SPDR Financial Selection Fund (XLF) increased by 3.45%. SPDR Health Care Sector Selection Fund (XLV) fell 0.1%, but regained the 50-day line on Friday.

Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark(up 0.4% last week and ARK Genomics ETF)ARKG) 0.2%. Tesla stock remains a major holding via Ark Invest’s ETF. Kathy Wood has continued to ramp up her TSLA holdings to kick off 2023.

Top five Chinese stocks to watch now

Stocks to watch

ELF’s stock was fairly clear. Shares jumped 4.4% to 58.05 on Friday, exiting a flat at more than double normal volume, according to MarketSmith Analysis. the relative strength The streak reached new highs.

SLB stock rose 3.5% to 54.50 on Friday, extending its bounce from the 50-day line and clearing an early entry in its consolidation. SLB was formerly known as Schlumberger.

CAT stock rose 3.6% to 248.86, moving decisively into buy territory from the 6%-deep Flat base Next to a long and deep consolidation.

RIO stock rose nearly 3% to 74.07, removing a cup with a handle Point purchase.

KLAC and ATKR stock bounced off their 10-week streaks and topped their 21-day averages, making early entries.

UTHR stock has bounced slightly from the 10 week line as it is trading very tightly. Perhaps United Thera could use more strength to clear a short downtrend.

PODD stock regained its 50-day line, but retreated to close below the 21-day line. A move above 300 would provide an early entry inside a flat base.

TJX’s stock broke from a flat, shallow base alongside a long, deep base cup style.

Tesla Roils China EV Market

On Friday, Tesla cut prices in China and the major Asian markets of Japan, Australia and South Korea. This followed record fourth-quarter deliveries that were missed by views for the second quarter in a row. With a rapidly declining backlog, Tesla needed to act bold just to try and maintain existing deliveries.

Facing stiff competition in China, the Tesla Model 3 is now nearly $600 more than the BYD Seal, essentially eliminating a near-$10,000 gap in just a few months.

The price cuts will affect Tesla’s gross margins, and the question is how much they will boost demand for the Model 3 and Y, and for how long.

Tesla’s price war in China is in large part aimed at BYD, which is either the world’s largest electric car maker or the No. 2 fast-rising company, but BYD is profitable with solid gross margins for cars. Also, an increase in large exports, including to Australia and on January 31, Japan, may help isolate it.

China’s electric vehicle price war may be a bigger concern for electric vehicle startups. Nio and XPeng are still losing money. Li Auto has been inconsistently profitable.

Keep in mind that Tesla’s second price cut in China in 10 weeks could be just the beginning of a fierce discount. Tesla has plenty of spare capacity while its competitors, especially BYD, are getting bigger. And they all move aggressively into the $30,000 to $50,000 range where Tesla resides.

Tesla stock fell 8.2% to 113.06 this week, continuing the sell-off. But shares rebounded from Friday’s bear market low of 101.81 to end the session up 2.5%. BYD stock fell 1.55% on Friday, but continued to gain 7% for the week, above the 50-day line.

Nio, Li Auto, and XPEV stocks fell 4.5%, 9.2%, and 15%, respectively, on Friday. But it rose 2%-6% for the week.

Tesla stock obviously looks terrible right now, but none of these EV stocks are looking good.

Tesla vs. BYD: EV Giants Vy for the Crown, But Which One is a Better Buy?

Market rally analysis

The stock market took a positive step on Friday.

The Dow Jones moved above the 50-day and 21-day moving averages after hitting resistance in recent days. The Dow is more relevant to the current market, with industrials, healthcare, and several Dow-style companies leading the way, such as Caterpillar.

S&P 500 cleared the 21-day streak, up to the 50-day streak. Russell 2000 has 21 days back but still has a bit of work to do to get to 50 days.

The S&P MidCap 400 has moved above the 21-day, 50-day, and 200-day moving averages. So did the Invesco S&P 500 Equal Weight ETF (RSP).

The NASDAQ is approaching the 21-day line for the first time in weeks, but it is clearly behind.

Even the Dow still faces its peak in December, as other indices face multiple challenges. Crossing the S&P 500 above the 50-day line would be another big move.

This may signal the beginning of a more significant rally, even if it is a short and negotiable rally, but it is still not clear.

Blue chips, which have generally looked better than the S&P 500 in recent months, showed a strong move on Friday, with a number of breakouts and buy signals. But this is after some frustrating setbacks earlier in the week, and more broadly over the past two months.

Look to see if the market rally can build momentum in the major indices and blue-chips. On Thursday, the CPI opened.

It’s time to market with IBD’s ETF Market Strategy

What are you doing now

The stock market rally is looking better for now. Investors may want to add some exposure, either in individual stocks or via broad-market ETFs. But don’t get too excited.

This could be a bullish turn, or just another false head.

The market can quickly reverse lower. Or, the S&P 500 could climb to its 200-day or December highs — and turn back.

Taking small positions may be the best course of action at first. Let the market rally pull you in. Be prepared to cut losses quickly and still consider taking partial profits quickly.

But it’s definitely a good time to build your watchlists. Make sure you have a varied menu. While the areas of growth and technology are still lagging behind with a few exceptions like KLAC stock, a plethora of stocks from a variety of sectors look interesting.

Read The Big Picture Every day to keep up with the market trend, stocks and leading sectors.

Please follow Ed Carson on Twitter at @employee For stock market updates and more.

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