Rally Attempt Reels After Just One Day; 5 Growth Stocks To Watch

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


The major indices had a wild week, with the major indices breaking to break the market lows before rebounding strongly on Thursday despite a fiery inflation report. Equities resumed selling on Friday as Treasury yields were higher.

While the attempts to recover the market are still ongoing, the major indices are all in steep decline. Stocks that have bought or set flash signals tend to burst suddenly. Investors should remain cautious until the market shows real signs of strength.

You are here TSLA) AND netflix , NFLX) best earnings for next week. TSLA shares fell to their lowest level in 52 weeks. NFLX football has formed on a lower base, but is facing considerable resistance above.

During this, medical shock wave mighty kill, speed of the wolf ,wolf, Ehr test system ouch, Albemarle ,egg white Digi international , DGI) are growing stocks that hold up quite well, but are not yet positioned in the midst of the current market weakness. Everyone has suffered losses in the past few days, including Friday. If the market shows further weakness, they could explode sharply. But, if the market strengthens, these could be notable winners.

dow jones futures today

Dow Jones futures open Sunday at 6 p.m. ET, along with S&P 500 and Nasdaq 100 futures.

Remember that overnight action in futures on Dow and elsewhere does not necessarily imply actual trading in the next regular trading session.

Join IBD’s experts as they analyze the stocks that are punishable by the stock market rally on IBD Live

scholarship last week

The stock market was sold into a new bear market, rebounded, then slipped back into volatile weekly action.

The Dow Jones Industrial Average rose 1.2% in stock trading last week. The S&P 500 Index fell 1.5%. The Nasdaq Composite lost 3.1%. Russell 2000 small cap fell 1%.

The 10-year Treasury yield increased 13 basis points to 4.01%, extending the weekly winning streak to 11 weeks. On Thursday, the 10-year Treasury yield hit a 14-year high of 4.06%. The two-year Treasury yield, which is more tied to Fed policy and where rates may be heading, rose to 4.5%.

Last week, US crude oil futures fell 6.8% to $ 86.40 a barrel. Natural gas price down 3.8%

Among the top ETFs, the Innovator IBD 50 (ffty) ETF fell 3.6% last week, while the Innovator IBD Breakout Opportunities (boxing) ETF was up 1.3%. The iShares Extended Tech-Software Sector ETF (tub) fell 5.7% while the VanEck Vectors Semiconductor (smh) ETF fell 8.2% to hit two new two-year lows.

The SPDR S&P Metals & Mining ETF (XME) fell 3.1% last week. The Global X US Infrastructure Development ETF (expansive) fell 1.5%. The US Global Jets (jet) ETF was up 5.75%. The SPDR S&P Homebuilders ETF (XHB) lost 4.2%. The Energy Select SPDR (XLE) ETF gained 1.9% and the Financial Select SPDR (45) ETF 0.4%. Health Care Select Sector SPDR Fund (xlv) gained around 1%.

Reflecting the more speculative stocks, the ARK Innovation ETF (arkk) fell 9.4% last week, on the verge of breaking below the March 2020 COVID low. The ARK Genomics (ARKG) ETF fell by the 7.1%, still well above the June lows. . The TSLA stake is the main holding of the Ark Invest ETF.

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action to watch

The SWAV stock has been attempting to rebound for most of the past week but has gained slight volume. On Friday, stocks reversed sharply from the 50-day line, down 7.6%. Shockwave stock is still consolidating above the September low of 315 buy points. A decisive move above the 50-day line could trigger an initial buy point from the descending trend line. Although SWAV shares have been volatile, the relative strength line is at a higher level.

WOLF stock also hit resistance on the 50-day line on Friday, dropping to a low on Thursday, well below what has been trading in the past two months. The chip maker focused on electric vehicles is approaching the 200-day line with a groundbreaking hiatus. If Wolfspeed finds support and recovers, they may soon have a new base.

AEHR stock fell below the 50-day line on Friday, ending a difficult week. The electric vehicle-focused chip equipment maker grew the previous week in an increase in profits, offering early entry into a consolidation. The official purchase point is 19.53. Clearing the Oct 10 high at 17.61 could offer aggressive entry.

ALB stock fell nearly 13% during the week due to market weakness and analyst expectations that lithium prices, at historic lows, would drop significantly. A week ago, Albemarle stock was on top of a buy signal. Now, the ALB stock is expected to hold its 200-day line.

The DGII stock hit a record on October 6, but has since sold out. On Thursday, play on the net fell well below its 50-day line, but rallied to close almost flat. But Digi International plummeted to losses on Thursday, with shares falling again on Friday. The DGII stock needs some time to build new ground, but its strong growth and RS line is worth a look.

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change netflix subscriber

Netflix’s earnings are expected Tuesday night, but analysts and investors will focus on customers. They will be particularly interested in the prospects of Netflix customers. Last week, Netflix announced that its ad support tier would launch on November 3, priced at $ 6.99 per month.

Netflix shares formed a lower base after plunging from mid-November to mid-May. The shares are trading near the 50-day line, but are still falling sharply below the 200-day line. The point of purchase is 252.09. This is just above the top of the NFLX stock earnings spread on April 20, indicating great resistance there.

Earnings Tesla

Tesla’s earnings are set for Wednesday night. Analysts expect 53% earnings per share to rise 62% to $ 22.28 billion. But investors will be interested in the prospects for future growth. Deliveries in the third quarter hit a record 343,800, but were well below estimates of around 360,000 and around 22,000 vehicles below what Tesla produced in the quarter.

China’s order book for the latest Model 3 and Y models has shrunk considerably, while competition is heating up dramatically. With Shanghai’s significant increase in production, will Tesla be able to export most of this growth in the fourth quarter and beyond? Or will the electric vehicle giant start slashing prices after rising dramatically over the past two years?

In the meantime, investors will want to get new clues about Cybertruck and any other future products. Elon Musk recently tweeted that Tesla Semi production has begun, but how much? There are still many questions about CMS pricing, cost and key features.

Tesla shares fell significantly for the fourth straight week, finally reaching a low in May, the worst in 16 months. Of course, now is not the right time for most of the growing stocks, especially electric vehicle manufacturers. TSLA shares, down more than 50% from their peak in November 2021, are in dire need of repair.

Tesla vs. BYD: Which electric vehicle giant is the best buy?

stock market analysis

The Dow Jones, the S&P 500 and the Nasdaq all rose in the bear markets last week. On Thursday, they rebounded strongly from huge intraday losses following a fiery inflation report. But on Friday, the major indices lost most or all of the day’s gains, while remaining above Thursday’s lows.

The Dow Jones, which retraced its 21-day moving average on Thursday, fell on Friday. The S&P 500 and Russell 2000 have encountered resistance at this short-term level, which also coincides with the top of a descending trend line. The Nasdaq never hit its 21-day close, stumbling on the 10-day line.

For the week, the Dow Jones was up slightly, while the S&P 500 and Nasdaq were down.

A market rally attempt is still underway, but has not yet shown that a true low has been reached.

When Treasury yields rise and the Federal Reserve tightens aggressively, it is difficult to catch a sustained market rally. The 10-year yield is a maximum over 13 years, above 4%. The Fed’s rate hike forecast increased further last week due to hot inflation data.

Last week saw a positive market reaction to UK government stocks, as well as an early start to the earnings season. But the next few weeks will see a huge surge in earnings that could affect the market as well as individual stocks and sectors.

There are a number of medical and energy stocks that have good holdings, including Eli Lily ,THERE IS, human Gunjan, Vertex Pharmaceuticals VRTX, cardinal health ACH, Exxon Mobile XOM) AND Devon Energy dvn,

Most of the growing stocks suffered heavy losses, including Tesla. Names like Shockwave and DGII Stock are also subject to heavy sales when created.

Time Markets with IBD’s ETF market strategy

What should we do now

Investors need to be patient and prepare for tomorrow. While big bounces like Thursday’s are exciting and increase the likelihood of a market low, a lot more evidence is needed to suggest it.

Even if the market rally is accelerating and there is a final day, this is not a sign to push all your coins. An FTD could fail quickly or the bullish trend could simply be another short-term tradable rally in a bear market.

Investors should focus on preparing for the next uptrend. It is good to look for stocks in positions above their 50-day line. But you also follow relatively strong stocks with damaged charts.

Read The Big Picture every day to follow market developments, stocks and key sectors.

Follow Ed Carson on Twitter @ibd_ecarson For stock market updates and more.

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