Dow futures will open Sunday evening, along with S&P 500 and Nasdaq futures contracts, as Federal Reserve Chairman Jerome Powell looms large late next week. Last week’s stock market rally pulled back from major resistance while Treasury yields tumbled around 3%.
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High-value growth names, which have taken big strides in the past two months, were among the biggest losers. Bitcoin and other cryptocurrencies sold out on Friday.
Investors should wait to see how the market pullback will end before adding new exposure.
Warren Buffett stock apple (AAPL) And the Occidental Petroleum (OXY) deserve watching. Occidental Petroleum broke out on Friday as Warren Buffett’s Berkshire Hathaway won regulatory approval to raise its stake in OXY to 50%. AAPL stock is trading around entering a trendline. Tesla (TSLA), Centennial collectibles (CELH), AstraZeneca (AZN), monolithic power systems (MPWR) And the Insulet (PODD) is also close to different buy points.
Stocks of CELH and Monolithic Power are located in IBD Leaderboard Watch list. AZN stock is running SwingTrader. MPWR stock is running Long-term leaders of IBD. Percentile arrows, homogeneous arrows, and Tesla arrows are located on defect 50. Homogeneous and OXY stock on IBD Big Cap 20.
Insulet and AstraZeneca were IBD stock today picks last week.
Fed Chairman Powell
Federal Reserve Chairman Powell will deliver a policy speech Friday at Jackson Hole’s annual meeting. Powell used this rhetoric in previous years to indicate marked shifts in policy. It is unclear what he might say that would surprise the markets. The Federal Reserve is in the middle of a rate hike cycle to combat high inflation. Policy makers may soon turn to smaller rate increases by the Fed, but Powell may not be ready to reach out.
Markets are divided over whether the Fed will raise interest rates by 75 basis points for the third time in a row at the September 20-21 meeting, or choose to move half a point.
Even after he spoke, there were still several key economic reports ahead of the Federal Reserve’s September meeting, including the August jobs report and the Consumer Price Index.
Bitcoin Crash
Bitcoin tumbled Friday after a modest dip earlier in the week. It traded near $21,000 on Friday night. After dropping below $18,000 in June, the price of Bitcoin soared to nearly $25,000 on August 14. Also, higher yields support the dollar.
Bitcoin-related stocks like Queen Piece (Currency) also sharply over the past week.
Dow jones futures contracts 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 overnight in Dow Jones futures contracts and anywhere else that does not necessarily translate into actual circulation in the next regular session Stock market session.
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stock market rise
The stock market rally started the week moving towards or above major resistance, but eventually pulled back, mostly or completely on Friday.
The Dow Jones Industrial Average fell 0.2% last week stock market trading. The S&P 500 fell 1.2%. The Nasdaq Composite Index fell 2.6%. Small-scale Russell 2000 slipped 2.9%.
The 10-year Treasury yield rose 14 basis points to 2.99%, including 11 basis points on Friday.
US crude oil futures fell 1.4% to $90.77 a barrel last week, but bounced off their weekly lows. Natural gas futures were trading around 14-year highs.
ETFs
between the Best ETFsThe Innovator IBD 50 ETF (fifty) fell 2.9% last week, while the Innovator IBD Breakout Opportunities ETF (fit) fell 0.4%, erasing strong weekly gains. iShares Expanded Technology and Software Fund (ETF)IGV) sank 3.9%. VanEck Vectors Semiconductor Corporation (SMH) is down 4.2%, holding MPWR stock.
SPDR S&P Metals & Mining ETF (XME) sank 4.2% last week. Global Infrastructure Development Fund X US (cradle) is down 1.4%. US Global Gates Foundation (ETF)Planes) down 4.2%. SPDR S&P Homebuilders ETF (XHB) reversed lower, dropping 3%, ending an eight-week winning streak. SPDR Specific Energy Fund (SPDR ETF)XLE) rose 1.3% with significantly higher ownership of the OXY stock. SPDR Financial Choice Fund (SPDR)XLF) gave up 1.8%. SPDR Healthcare Sector Selection Fund (XLV) fell 0.5% last week, but rose on Friday.
Shares reflect more speculative stories, the ARK Innovation ETF (see you) fell 14% last week, undermining the 50-day streak. ARK Genomics ETF (ARKG) down 13% to just over 50 days ago.
Tesla shares are principal ownership via Ark Invest’s ETFs.
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Warren Buffett stock
OXY stock rose 9.9% to 71.29 Friday, topping 66.26 handle cups in the regular triple-volume, according to MarketSmith Analysis. The stock has now expanded slightly from 5%. Purchase areaso investors may want to wait for a pullback.
Occidental Petroleum has outperformed many other oil stocks, with Warren Buffett’s Berkshire raising a stake in Oxy just over 20% in recent months.
Berkshire revealed on Friday that the Federal Energy Regulatory Commission approved its request to buy up to 50% of Occidental Petroleum, triggering the hack. The company said on Friday that Berkshire had applied for the right to do so on July 11.
Berkshire has been ranked number one for Apple, which has outpaced other major companies and the broader market in the past two months. Apple shares fell 1.7 percent to 171.55 on Friday. Tech giant Dow Jones ended a six-week winning streak, but fell only 0.3%. AAPL stock is back below the downward sloping trend line, currently around 173, which could act as an early entry. The official point of purchase is 183.04. Ideally, the Apple stock will soon form a handle.
Other stocks to watch
Tesla stock fell 1.1% to 890, falling below the 200-day line. On Tuesday, TSLA stock hit 944, a three-month high and a solid entry. Tesla generally held up much better than rival electric car makers and Ark stocks last week, but it’s a long way from the official 1208.10 buying point.
On August 25, TSLA shares will split 3 for 1. It’s unclear whether this will be a positive or negative catalyst. Tesla proposed the split months ago, while shareholders approved it on August 4.
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CELH stock fell 6.5% to 98.28 last week, but is finding support around the 21-day moving average. Shortening the 21-day streak can be helpful. After rallying from late May, Celsius stock has now formed a handle on a deep nine-month consolidation, advancing 109.84 buying points.
AZN stock rose 0.8% to 67.17 last week, almost regaining an old buying point at 67.50 after rebounding from the 50-day line the previous week. The line relative force It weakened in recent weeks as AstraZeneca stock consolidated while the broader market advanced. But AZN and other defensive growth names may be ready to outperform once again.
MPWR stock is down just over 3% in the last week to 511.65, which was an inside week versus the previous week. The monolithic power reserve contains 541.49 cup with handle Buying point after the chipmaker surged from early July to early August. The decline to the 21-day moving average will coincide with the 500 level and only lower the bottoms of the handle.
PODD stock fell 1.2% to 267.42 last week. Diabetes products maker stock has 276.48 buying points in depth double bottom base. The Insulet stock could use a bit more change, perhaps to the 21-day moving average.
Market Rise Analysis
The stock market rally hit resistance around the 200-day moving average last week. The S&P 500 came within one point of that key level while the Dow Jones and Russell 2000 indexes moved above it during the week, but eventually finished below.
Initially the major indices paused, resisting pulling back even as ARKK and high-value growth names suffered sharp losses. But on Friday, the Nasdaq finally fell below the 10-day moving average, moving towards the 21-day line.
Major indices have been on the rise for several weeks, with many former leaders climbing 50%, 100% or more from the bottom. So the 200-day line was a logical place to pull back.
Higher Treasury yields helped provide a news source for last week’s slump. High rates are a drag on stocks, especially high-value growth names. The energy price recovery, if sustained, could limit or even halt inflation while raising Fed rates further for a longer period.
However, higher energy prices are good news for oil and gas stocks such as Occidental Petroleum, which were among the big gainers last week.
Pharma and defensive growth stocks have held up relatively well, including AZN and Hershey (HSY).
A pullback to the 21-day line is likely to be good news for the market rally, allowing stocks like Monolithic and Celsius to set up deeper handles for a favorable change. But you never know if a modest withdrawal will turn into something more serious, or what sectors might have a more difficult time.
Time to Market with IBD’s ETF Market Strategy
What are you doing now
Investors should be wary about adding net exposure for now, while the stock market rally pulls back. If you decide to buy a new stock, you can offset this by taking a partial or full dividend on other holdings.
There is no need to cut exposure just yet, but don’t let decent gains fall to zero, and be quick to cut losing positions.
This is a great time to work on watch lists. There is still a lot of leadership or potential leadership in the market. Lots of stocks may be carving handles, bases, or pulling back in the coming days, creating a slew of buying opportunities.
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