Dow Jones futures will open Sunday night, along with S&P 500 futures and Nasdaq futures. The stock market remains divided, but the rise is expanding significantly, and more and more stocks from different sectors are breaking out.
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The notable exception is Nasdaq and growth stocks, but even they had a tentatively positive week.
Delta Luglyne (DAL), Las Vegas Sands (LVS) and Marriott International (MAR) is one of the different travel stocks that are in similar patterns, with United Airlines (UAL) is already cleaning up a new point of sale.
Volkswagen (VWAGY) will hold a battery-based Power Day event before US markets open on Monday, similar to Tesla’s Battery Day last year. VW’s earnings are Tuesday, while the ID.4 crossover launches in China and the US later this month. VW is leading the charge of traditional car manufacturers speeding with electric vehicles. This could put Tesla’s sales and prices, as well as Tesla shares, under pressure. VW shares have soared in recent months, rising rapidly General Motors (GM) and Ford Motor (F).
Floating Trading Ideas Can Change Brands On Strength
S&P 500 add-ons
Finally, NXP Semiconductors (NXPI), Penn National Gaming (PENN), Generac Holdings (GNRC) and Caesars Entertainment (CZR) will soon join the S&P 500 index before opening on March 22. Shares rose 3% -7% on the S&P 500 news late Friday. NXP shares could offer a buying opportunity if it bounces off its 10-week range, while Penn National, Genera and Caesars do not look real.
Generac and GM stock is on IBD Leaderboard. Generac shares and Tesla are on the IBD 50 list.
Dow Jones Futures Today
Dow Jones futures open at 6pm ET, along with S&P 500 futures and Nasdaq 100 futures.
Remember that overnight actions in Dow futures and elsewhere do not necessarily translate into stocks in the next regular session.
Join IBD experts while analyzing stocks in the stock market on IBD Live.
Coronavirus News
Coronavirus cases worldwide reached 119.60 million. The deaths from Covid-19 were 2.65 million.
Coronavirus cases in the US hit 29.99 million, with deaths above 545,000.
Stock market rally
The rise in the stock market has continued to strengthen and widen over the past few days, with the Dow Jones, S&P 500 and Russell 2000 reaching the highest points.
The Dow Jones industrial average rose 4.1% in last week’s stock market trading, reaching a record high over the past four sessions. The S&P 500 index rose 2.6%, while the Russell 2000 rose 7.35%. The Nasdaq composite climbed 3.1%.
The 10-year treasury yield rose to a new high of 13 months, with 10 basis points on Friday to 1.63%.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 8% last week and the Innovator IBD Breakout Opportunities ETF (BOUT) jumped 9.6%, both of which could easily regain their 50-day lines. The iShares Expanded Tech-Software Sector ETF (IGV) rose 2.7% and the VanEck Vectors Semiconductor ETF (SMH) rose 0.9%. both below their 50-day lines.
Ark Innovation ETF reflects more speculative story stocks with 8.2% and Ark Genomics ETF 7.8%, but both are well below their 50-day line.
Read the big picture every day to keep up with the market direction and leading stocks and sectors.
Floating Trading Ideas Can Change Brands On Strength
VW Kragdag
Monday’s VW Power Day is a de facto response from Volkswagen to last year’s Tesla Battery Day, but without a year-long build-up. . It is expected that its battery and infrastructure strategy will be outlined, possibly showing the advancement in package or cell technology.
On Tuesday, VW will release figures for the entire year.
VW shares have risen 19% so far in March, the best level since 2009 as investors buy into its EV strategy. GM shares and Ford are up 15% this month. VW and Ford are expanding strongly. GM shares achieved a sloppy consolidation on Friday, but it also looks set to extend at 15% above the 50-day line.
The Tesla share rose 2.7% in March and 16% last week. But it has resisted its exponential moving average of 21 days and is still well below the 50-day line. Many valued growth stocks look similar to the chart of the TSLA stock.
Stock market analysis
The stock market still has a split personality with the Dow Jones, S&P 500 and Russell 2000 at a new high, while the Nasdaq is just below its 50-day line.
Economic reopening plays are doing well, including mining, manufacturing, travel, transportation, various retailers and more.
And no wonder. The US economy is about to move from a massive recession to a major economic boom in about a year. Restrictions on the coronavirus decrease as vaccinations increase and cases decrease, which includes normal activity, including travel that sleeps for a long time. Meanwhile, the $ 1.9 billion Biden stimulus has just passed with $ 1,400 checks for most Americans, weeks after a more modest Covid aid package with $ 600 checks. The White House and Congress Democrats are envisioning an even bigger spending bill later this year, with billions of dollars for infrastructure.
Just to highlight travel supplies, Trip.com (TCOM) on Friday surpassed a tight pattern of three weeks. The three-week period is just above a previous base, and it offers investors an opportunity to add shares or start a new position in TCOM. United stock has peered a similarly short consolidation – though not a tight pattern – slightly above a base.
Delta Share, Marriott, Hilton (HLT) and Hyatt (H) set up in their own shelves. It is also the Las Vegas Sands stock, which has a short period of three weeks that looks messy on a daily chart, but is very strict on a weekly basis.
Nasdaq lingers but does not lose
The Nasdaq did have a solid rise last week and closed near the highest of its weekly range after starting a tumble of 2.4% on Monday. On Friday, however, the Nasdaq fell back below its 50 days as treasury yields rose. But it held up relatively well, closing just 0.6% at the peak of the session on Friday.
The Nasdaq has not yet confirmed that its rally effort has legs and remains vulnerable to rising Treasury yields. A Nasdaq follow-up day will alleviate fears that technology stocks will pull the broader market lower, as earlier in March.
But even if the Nasdaq bounces back, growth names still look damaged. An immediate rush back to new highs for Tesla shares or other valuable names does not seem normal. Also remember that Tesla and many of these stocks outperformed last year. So there are several reasons why they need weeks or months to set up in the right base again.
What to do
The good news about the split market is that although growth stocks are on an injured reserve, many economic recovery stocks have erupted and yielded strong gains.
Investors therefore do not have to sit on the sidelines. While CAN SLIM investors are flocking to growth stocks for obvious reasons, many winners of the “model book” have been turned upside down all along. You need to be flexible and acknowledge which stocks work and which do not.
Look for stocks with strong relative strength. Pay close attention to those with solid income estimates and those set up on a sound basis.
If you do not feel comfortable buying non-growth stocks, you can buy ETFs like SPY, IWM or various plays like XME (mining), JETS (airlines) or XHB (homebuilders). And you can always stay cash until technology stocks really recover.
Please follow Ed Carson on Twitter @IBD_ECarson for stock market updates and more.
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