Dow futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. The major indices and the leading stocks incurred heavy losses last week, which led to a shift in the market’s direction to the “correction”.
Investors are still on Tesla (TSLADelivery control. The electric vehicle manufacturer could release production and sales numbers for the third quarter this weekend or early next week.
The S&P 500 and Nasdaq fell below the 50-day lines and lowered their lows on September 20th. Growth stocks had their worst week since the coronavirus crash. While stocks rebounded on Friday, it marks the first day to attempt a market rally. At the moment, the market is still in a downtrend.
In such an environment, investors must have limited exposure to the market or be entirely cash. Look for strong stocks Lines of relative force.
Netflix (NFLX), datadog (dog), mosaic (moss), American Express (AXP), Bill.com (law Project), Quanta Services (PWR) And Paychex (PayX) all have RS lines at or near the highs, reflecting their outperformance against the S&P 500.
Netflix stock is now in buy territory. In a healthy stock market recovery, investors can buy NFLX, or see early entries on Datadog, Mosaic, Paychex and AXP stocks.
also watch out Microsoft (MSFT) And google browser (The Google). The RS lines of these technical mega-sulfates are not far from the elevations. If MSFT and Google stocks can get their 50-day lines back, that’s a good sign for the Nasdaq.
As for TSLA stock, it is holding a buying territory. Tesla’s RS line hasn’t hit a new high, but it’s at its best in nearly six months.
Tesla, Microsoft and Google stocks are working IBD Leaderboard. Microsoft stock and Google are up and running too Long-term leaders of IBD. American Express and PWR stock is in operation SwingTrader. Google stock is in defect 50.
The video included in this article analyzes the overall movement of the stock market and reviews the shares of Netflix, Mosaic, and DDOG.
Why simplify this IBD tool burntthe classroom top stock
The infrastructure bill is still in flux
Meanwhile, the fate of the $1.2 trillion infrastructure bill remains unclear. House progressives are demanding significant progress, at least, on a multi-trillion-dollar tax and spending package before a bipartisan infrastructure bill is voted on. But it appears that Democratic leaders are now trying to persuade centrist Democrats to agree to a $2 trillion reconciliation package in exchange for the long-touted $3.5 billion package. President Biden met with Democratic lawmakers on Friday, telling them that the infrastructure bill would not pass until there was “agreement” on the reconciliation bill.
Also, while Congress last week extended government funding in early December, lawmakers still have to approve an increase in the debt limit. Treasury Janet Yellen has set October 18 as the likely date for a government default. Raising the debt limit without a Republican vote could complicate the reconciliation package, which in turn could keep the infrastructure bill on hold.
Dow jones futures contracts today
Dow futures contracts will begin trading at 6 p.m. ET on Sunday. As well as futures contracts for the S&P 500 and Nasdaq 100.
Remember to work overnight in Dow Jones futures contracts and elsewhere that does not necessarily translate into actual circulation in the next regular session Stock market Period.
Join IBD experts as they analyze actionable stock market actionable shares on IBD Live
Corona virus news
The number of coronavirus cases worldwide has reached 235.01 million. The number of Covid-19 deaths has passed 4.80 million.
The number of coronavirus cases in the United States has reached 44.42 million, with the death toll exceeding 717 thousand.
New cases of COVID-19 are declining sharply in the United States and around the world, but they are still very high.
Starting a stock market recovery attempt
The stock market ended the week with heavy losses despite Friday’s bounce.
The Dow Jones Industrial Average fell 1.35% last week stock market trading. The S&P 500 lost 2.2%. The Nasdaq Composite lost 3.2%. Small cap Russell 2000 decreased 0.3%.
The 10-year Treasury yield, which jumped to nearly 1.57% on Tuesday morning, ended the week at 1.465%, up less than a basis point. Friday’s dip in the 10-year yield helped buoy stocks at the end of the week.
Growth stocks were hit hard. between the Best ETFs, The Innovator IBD 50 ETF (fifty) is down 8.7% last week, while the Innovator IBD Breakout Opportunities ETF (fit) sank 4.1%. iShares Expanded Technology and Software Fund (ETF)IGV) lost 4.2%, with Microsoft stock a key component. VanEck Vectors Semiconductor Corporation (SMH) slipped 5.8%.
Shares reflect more speculative stories, the ARK Innovation ETF (see you) is down 5.1% and the ARK Genomics ETF (ARKG) 4.9%. Tesla stock continues to be the number one ARK Invest ETF, even though Cathie Wood has sold off a significant portion of ARK’s stake in recent weeks.
Other sectors were mixed.
SPDR S&P Metals & Mining ETFs (XME) rose 2.6% and US infrastructure development ETFs (Global X)cradle) decreased 0.9%. US Global Gates Foundation (ETF)Planes) climbed 2.5%. SPDR S&P Homebuilders ETF (XHB4% surrendered. SPDR Specific Energy Fund (SPDR ETF)XLE) increased by 5.8%. SPDR Financial Choice Fund (SPDR)XLF) decreased by 0.3%. AXP is a prominent stock in XLF’s ownership.
Top 5 Chinese stocks to watch right now
The EV giant will announce third-quarter deliveries and production numbers soon, possibly over the weekend or as late as next Tuesday.
Tesla shipments will reach nearly 232,000, according to the latest and upwardly revised analyst consensus. Tesla sold the Model Y in Europe for the first time, which likely drove sales in that region. Tesla exported most of its Shanghai production in July and August, mostly to Europe, but September seems like a big number for domestic China sales.
The lack of chips may limit Tesla’s production, but if so, it’s only slowing production growth so far. Meanwhile, global auto production has declined, increasing demand for and prices for Tesla.
Even aside from Tesla deliveries, next week will be big for the electric car maker.
On October 8, Tesla will begin rolling out the FSD Beta to fully self-driving owners and subscribers who want to sign up for the still-incomplete driver assistance program. Elon Musk recently said that Tesla will roll out a Beta at 1,000 drivers per day, starting with those who scored the highest on a driving safety test. Keep in mind that despite its name, fully autonomous driving is a practical Level 2 system.
Meanwhile, on October 7, Tesla will hold its annual shareholder meeting at its Austin plant, followed by an event at its Berlin plant on October 9.
Tesla stock rose 35 cents to 774.74 for the week, settling above the handle 764.55 buy point It was cleared on September 24. The RS line is still far from its all-time levels, but returned to its short-term highs in April.
The major indices incurred significant losses last week. Even worse, the S&P 500 and Nasdaq broke below the 50-day line and recent lows. It would have been nice to see a rebound in the major indicators on Friday, but it was only one day. The scale of the anemia, especially on the Nasdaq, was uninspiring.
After rising Treasury yields acted as headwinds for most of the week, Friday’s sharp drop in the 10-year yield helped spur equities.
If the major indicators avoid lowering Friday’s lows, we could get Follow-up day Later this next week or later. But at the moment, the market is still in correction. The major indicators are below the 50-day and 21-day moving averages. On the plus side, the Russell 2000 managed to reclaim the 10, 21, 50 and 200-day streaks in one fell swoop on Friday.
Growth stocks had a bad week. The weekly FFTY drop was the worst since the coronavirus crash. This came on the heels of a strong rally for growth stocks.
Growth stocks, or many of them, could dip in the coming weeks.
Energy, financial, and travel stocks performed relatively well last week. Energy stocks and banking generally have the most compelling charts, but these sectors are subject to shifts in energy prices and Treasury yields, respectively. Travel stocks may have a tailwind in the long run. With the delta-Covid wave seemingly fading in the United States and around the world, more people will be willing to travel, especially as governments lift or ease restrictions on cross-border travel.
Time to Market with IBD’s ETF Market Strategy
What are you doing now
Investors should keep their exposure at minimum levels, perhaps holding the main positions long or the big winners recently. There is nothing wrong with being all cash in the moment. Being cash during market corrections preserves your capital, but also your psychological capital. Trying to make money through correction can be mentally exhausting and distort your point of view. Just investing heavily during a correction means that you are not listening to the market. When the market returns to an ongoing uptrend, will you be ready to take advantage of it?
If you feel compelled to make new purchases, keep them small and cut your losses quickly. Be prepared to quickly take at least partial profits to help realize gains amid a weak to volatile market environment.
For the most part, investors should build their watch lists with the relative strength line in mind. Stocks like Netflix, Mosaic, Datadog, Paychex, and American Express all have strong RS lines. Don’t rule out sectors just because you have a bias for high-value growth stocks. Let the market and your screens guide you to potential leaders in the next sure upside.
is reading The Big Picture Every day to keep up with the trend of the market, stocks and leading sectors.
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