Dow futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rally took a heavy hit last week, with major indexes below key support and starting to move towards their Jan. 24 lows.
Fears that Russia will invade Ukraine weigh on the rally of the market, which is already dealing with inflation and other headwinds. Uncertainty about what Russian President Vladimir Putin will do increases volatility.
President Joe Biden said late Friday that he is confident that Putin has decided to invade Ukraine within the next few days. Other US and NATO officials echoed this concern, saying that Russia continues to build forces near the Ukrainian border. This is despite allegations from the Kremlin that some troops are withdrawing.
Ceasefire violations between Ukraine and pro-Russian separatists have escalated in the past two days, possibly providing a pretext for Russia to launch an invasion of Ukraine.
On February 20, major Russian war games with Belarus are scheduled to end. Moscow said the troops would then go home, but would they? February 20 is also the end of the Winter Olympics in Beijing. Putin may delay the invasion of Ukraine to avoid offending China.
But regardless of geopolitics, the stock market rally looks weaker than ever. Investors should take a defensive stance with minimal exposure.
Dow jones futures contracts today
Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 and Nasdaq 100 futures. ETFs that track the Dow, S&P 500, and Nasdaq 100, however, fell Friday evening After Biden made his latest comments on the Russia-Ukraine crisis.
The DIA ETF was down 0.4%. SPY sank 0.5% and QQQ sank 0.6%.
While Dow futures will open Sunday evening as usual, US markets will be closed on Monday in observance of the Presidents Day holiday. However, other stock markets will be opened around the world.
Five credits don’t suck
The RS line, the blue line in the provided charts, tracks the stock’s performance against the S&P 500 Index. It’s an easy way to learn about the leading stocks in any type of market. In a weak or volatile market, stocks with RS lines at their highest could lead the next rally.
Nvidia, Tesla just hangs
Meanwhile, Nvidia stock and Tesla (TSLA) rebounded from near its 200-day moving averages on Friday. This is an area where Tesla and . are stored nvidia (NVDA) found support before in late January. Can these former big winners continue to do so? Likely based on moves following the market rally. But as huge stocks, Tesla and NVDA stocks will have something to say about the general direction of the market.
Corona virus news
The number of coronavirus cases worldwide has reached 421.94 million. The number of Covid-19 deaths has passed 5.89 million.
The number of coronavirus cases in the United States has reached 80.02 million, with the death toll exceeding 958,000.
stock market rise
The stock market rally tried to recover last week but faded sharply late in the week.
The Dow Jones Industrial Average fell 1.9% last week stock market trading. The S&P 500 lost 1.6%. The Nasdaq Composite Index sank 1.8%. Small cap Russell 2000 down nearly 1%
The 10-year Treasury yield fell 2 basis points to 1.93%, but that’s after hitting a 30-month high of 2.065% during Wednesday. Russia’s war fears have pushed investors into safe havens, while the Fed’s minutes from the January policy meeting offered no fresh hawkish surprises.
Crude oil prices fell more than 2% to $91.07 a barrel, but settled above the $90 level.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) is down 1% last week, while the Innovator IBD Breakout Opportunities ETF (fit) declined by 3%. iShares Expanded Technology and Software Fund (ETF)IGV) decreased by 5.4%. VanEck Vectors Semiconductor Corporation (SMH) closed steady, but fell sharply on Thursday and Friday. Nvidia stock is a major component of SMH.
SPDR S&P Metals & Mining ETF (XME) by 2.1% last week. Global Infrastructure Development Fund X US (cradle) gained 1.3%. US Global Gates Foundation (ETF)Planes) rose 1.8%. SPDR S&P Homebuilders ETF (XHB) decreased 0.5%. SPDR Specific Energy Fund (SPDR ETF)XLE(I gave up 3.35% and the Financial Select SPDR ETF)XLF) sank 2.3%. SPDR Healthcare Sector Selection Fund (XLV) down 2.1%.
Shares reflect more speculative stories, the ARK Innovation ETF (see you) fell 9.9% last week, hitting a 20-month low on Friday. ARK Genomics ETF (ARKG) decreased by 6.6%. Tesla stock continues to rank number one among ARK Invest’s ETFs.
Apple stock fell 0.8% to 167.30 last week. During a massive market sell-off in late January, the iPhone giant didn’t even come close to the 200-day streak. AAPL stock now contains a file cup with handle The base with 176.75 purchase points, according to MarketSmith Analysis.
commercial metal stock
Commercial Metals rose 3.1% to 36.75 last week. It is slightly above the 50-day moving average, and is operating at 38.82 buy points. CMC stock could start forming a handle, with a lower entry potential at 37.59. Investors can actually use that as an early entry.
Union Pacific Stock
Union Pacific jumped 5.2% to 251.19 last week. UNP stock is trading just below 256.11 buy point in a very shallow area flat base. Investors can buy it now or just buy 255.
ORLY stock rose 1.3 percent to 676.96 last week, its fourth consecutive modest weekly gain. O’Reilly shares regained the 50-day streak, providing an early entry into a shallow streak cup base. the official buy point It is 710.96.
NTR stock had a turbulent week, dropping to break the 50-day line briefly before rebounding quickly to hit a high before pulling back a bit. But in the end, Nutrien stock fell 0.7% to 75.78. That’s just below 77.45 buy points.
On Wednesday night, the fertilizer maker reported a 929% increase in EPS with a 79% increase in revenue. Other fertilizer stocks are also doing well, despite some significant daily and daily fluctuations. That includes MOS stock, which is reported late Tuesday.
Tesla stock fell 0.35% to 856.98 last week, but closed lower in its range and nearly tested the 200-day line again on Friday. TSLA stock has been hitting resistance at its retreating 21-day line for the past few weeks, while its 50-day line is racing lower. Holding the 200-day streak, and the January 28 low at 792.01, is key for the EV giant. On the upside, Tesla stock has 1,208.10 buy points, and doesn’t really have an early entry.
Nvidia stock fell 1.3% to 236.42 for the week, but after hitting resistance at the 10-week line, the chip giant tested the 40-week streak again and is almost touching the 200-day line. As with Tesla, NVDA stock pared Friday’s losses slightly.
Nvidia’s earnings and guidance late Wednesday topped views, but investors focused on an unchanged profit margin forecast.
If Nvidia stock can rise above the 50-day line and the February 10 high at 269.25, and also break a sharp downtrend, it will provide a very strong entry. NVDA stock still has a long way to go to reach its peak on November 22nd at 346.47.
Market Rise Analysis
The stock market rally, already under pressure, was sold off again late last week. The Dow, S&P 500 and Nasdaq Composite broke below their last ranges and are heading towards the lows of January 24th. The S&P 500 and Nasdaq Composite are now down below Jan. 31 Follow-up day Lows, with high odds of breaking it to new lows. Cutting the lows on January 24th would signal the end of the market rally.
In late 2018, a stock market correction or bear market had two failed days to follow, and finally reached a bottom on Christmas Eve.
The rally of the faltering market has regressed sharply over the past several days, so it can be said that it is due to the rebound. But it doesn’t have to happen right away, and a day or two wouldn’t be good in that sense.
New losers still outperformed new gainers, while market breadth also weakened again after a brief improvement in early February.
In the very short term, the stock market will continue to focus on fears that Russia will invade Ukraine. The long weekend of Presidents’ Day could have big developments regarding Russia and Ukraine, raising the possibility of a big move up or down on Tuesday. But all these moves can quickly reverse with the following title.
Away from the Russian-Ukrainian crisis, inflation and rising federal interest rates are hanging over the market. On a somewhat related note, supply chain problems have been an ongoing crunch in recent weeks.
Solving supply chain problems will not only boost corporate profits and economic growth, but also potentially curb inflation. With cases of Covid down and restrictions receding rapidly, there may be light at the end of the tunnel, but it may be far away.
What are you doing now
Instead of trying to guess how Russia, the Federal Reserve, and supply chains will play out – and how financial markets will react – focus on what the market is doing now. Right now, major indices and leading stocks – outside of a few pockets of strength – are simply unhealthy.
Don’t be drawn to the market for a day or two of good market days. Home indexes have a lot of work to do. Anyway, there are only a few stocks being created at the moment. At some point, there will be a strong market rally with a large number of high-quality stocks flashing buy signals and moving up from there.
When that happens, you want to be ready. Keep your watch lists up to date and stay in touch with the market.
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