Dow futures fell Wednesday morning, along with S&P 500 and Nasdaq futures. The stock market’s rally closed slightly lower on Tuesday after a significant dip in the previous two sessions. Investors are cautious about making big bets ahead of Federal Reserve Chairman Jerome Powell’s big Jackson Hole speech on Friday.
Outside of Tesla stocks, most electric car makers are suffering. However, many electric vehicle-related plays are close to buying points or doable now. Include lithium producers Albemarle (ALB) And the Levent (LTHM). Play as the chip on semiconductors (on me), Axelis Technologies (ACLS) And the monolithic power systems (MPWR).
This comes before Wednesday night’s earnings from the chip giant nvidia (NVDA), with her comments about data centers also important to Monolithic Power.
Tuesday night, the maker of TurboTax gut instinct (INTU) soared with strong profits, while no costume boy (LZB) jumped on his results. Building luxury homes Toll Bros. (TOL) and retailer of youth clothing Urban Outfitters (URBN) on mixed results, while Advanced Auto Parts (AAP) reflected in earnings per share and disappointing sales. Nordstrom (JWNIt fell as it lowered the steering amid a glut of stock.
ALB arrow is on IBD Leaderboard. MPWR stock is running Long-term leaders of IBD. Tesla, Monolithic Power, Axcelis and Onsemi stocks are located in defect 50. Albemarle, Monolithic and ON stock available at IBD Big Cap 20. The homogeneous force was on Tuesday IBD stock today. Livent was Monday’s stock.
Dow jones futures contracts today
Dow futures fell against fair value. S&P 500 and Nasdaq 100 futures lost a fraction. The 10-year Treasury yield rose one basis point to 3.06%.
Crude oil futures are up 1%. Natural gas futures rose 2%. Copper futures are down more than 1%.
stock market rise
The stock market rally dipped on Tuesday, continuing to decline but with all major indexes approaching their 21-day moving averages.
The Dow Jones Industrial Average fell 0.5% on Tuesday stock market trading. The S&P 500 lost 0.2%, and TWTR was easily the worst performer. The Nasdaq Composite, up for most of the Tuesday session, closed less than one point lower. Small cap Russell 2000 rose 0.2%.
US crude oil prices rose 3.4% to $93.74 a barrel, extending a rebound from Monday’s lows after Saudi Arabia indicated that OPEC may cut production.
Natural gas futures are down 5%, pulling back from 14-year highs, even as Freeport LNG pushed to restart its Texas facility from early October to early November.
The 10-year Treasury yield rose 2 basis points to 3.05%. The yield on the 10-year bond was 3.08% on the day, then briefly fell below 3% after several weak economic reports.
Powell’s political speech is likely to lead to swings in Treasury yields and the prospect of a rate hike. Markets priced at least 50 basis points on September 21, but are divided on whether policy makers will opt for a third consecutive Fed rate hike of 75 basis points.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) rose 1.6%. iShares Expanded Technology and Software Fund (ETF)IGV) down 0.2%, and CRM stock was a major component of IGV. VanEck Vectors Semiconductor Corporation (SMH) rose by 0.65%. Nvidia stock is a major ownership of SMH.
SPDR S&P Metals & Mining ETF (XME) gained 2.45%. SPDR Specific Energy Fund (SPDR ETF)XLE(Up 3.6% and the Financial Select SPDR ETF)XLF) down 0.4%. SPDR Healthcare Sector Selection Fund (XLV) is down 1.4%.
Apple stock fell 0.2% to 167.23, trading above the 21-day moving average. On August 17, AAPL stock cleared a downward sloping trendline, but then retreated on Friday. Now tech giant Dow Jones is working on a handle. Apple stock needs an extra day on the daily chart to have a decent handle with 176.25 buy points. On the weekly chart, AAPL stock already has this handle.
The line relative force For Apple stock, at a record level, a bullish sign.
EV stock near points of purchase
Lithium Plays Albemarle and Levent reported strong earnings and guidance earlier this month.
Albermarle stock rose 1.9% to 281.03 after a reversal of the upward trend on Monday. The ALB stock extends from 250.25 buy handles from a handle within a huge handle. However, stocks are in an alternative entry range at 273.78, just above the 31% high – the deep handle. Investors can use this as an opportunity to buy ALB shares or add some shares.
LTHM stock jumped 5.1% to 30.33. Livent stock has 31.63 cup with handle Buy point, but right in a downtrend at the handle. That would provide early entry, although low volume is an issue.
On semiconductors, Axcelis Technologies and Monolithic Power, the chips play with exposure to electric vehicles, all with solid results in early August.
ON stock rose 3.6% to 71.25 on Tuesday. This is back above the handle buy point of 69.36, although the +10 cents fixation high at 71.35 is also a legitimate entry.
ACLS stock rose 2.2% to 72.22, heading towards 79.93 buying points from A deep cup with handle base. The Axcelis knob has been choppy, but the chip gearmaker is finding support at the 21-day streak. Axcelis stock could have an early entry from the downtrend break of the handle.
MPWR stock advanced 1.2% to 497.51, near the 21-day streak. The Monolithic Power stock has 541.49 cups with a point-of-purchase handle, according to MarketSmith Analysis. Stocks fell on Friday and Monday, undermining the 21-day streak, giving more jolt after a solid advance.
Monolithic Power is present in a number of markets including data centers, industrial applications, and electric vehicles.
Tesla stock rose 2.3% to 889.36, rebounding from the 21-day moving average, just below the 200-day line. TSLA stock could have a strong entry if it breaks short-term highs, with an eye on aggressiveness.
On Tuesday evening, the Tesla owner tweeted with the FSD Beta that he still had to “step in” quite a bit, even with the latest version 10.69. He suggested that Tesla focus on “basic control issues” as opposed to very specific ones.
Musk replied that Tesla owners who were “invited” to the FSD Beta test should not “complain”. The cost of fully autonomous driving — which is not self-driving — rose to $15,000 in early September.
Tesla 3 shares will be split for 1 after the Wednesday session.
Market Rise Analysis
The stock market rally was mixed on Tuesday, as all major indicators hit resistance at the 21-day moving average. The Nasdaq lost a fraction after falling 2% on Friday and 2.55% on Monday. The Dow Jones Index, which closed just below 21 days on Monday, lost more of its gains on Tuesday.
nvidia and Salesforce.com (CRMEarnings will be focused on Wednesday night. But the market rally may be range-bound until Fed Chair Powell’s big speech on Friday morning. Trading volume has been particularly light this week.
Shares of electric vehicle suppliers such as Albemarle and Axcelis look interesting.
Energy stocks were in the lead, but many of them were already past their buying points. Energy prices are subject to significant daily or even intraday fluctuations, with Tuesday’s reversal of the downtrend in Nagas futures a clear example.
Some steel plays are created along with fertilizer and planting stocks.
What are you doing now
A market rally is considered to be falling within an uptrend within a bear market. In the very short term, investors should be cautious about increasing exposure, especially as Fed Chairman Powell approaches.
More stocks form bullish setups, so investors should turn on screens and update watchlists.
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