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Dow Jones Futures: The Market Is Rising Strongly, But Here’s Why You Should Be Caution

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Dow futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures.




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The stock market rally made strong gains in the abbreviated week. The Dow Jones hit its highest level in seven months. But the S&P 500 is approaching the 200-day moving average, which is a major resistance area. Several economic reports loom ahead next week, including the November jobs report. These will be key to the Fed’s interest rate outlook.

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So investors may want to be careful about adding too much exposure in the very short term.

Main earnings

data storage company pure storage (PSTG), the Chinese e-commerce giant binduodu (PDD), dollar general (DJ) And the Ulta Beauty (Ulta) earnings report this coming week. PDD, Dollar General, Pure Storage, and Ulta Beauty stocks are all nearby Buy points like that.

Salesforce.com (CRM) And the snowflake (snow) headlined a number of software earnings reports, with key guidance for the entire sector and IT spending outlook. Snowflake is expected to report its first-ever quarterly earnings. But SNOW’s stock, and most of these other programs, are still in good shape.

Megacaps is also still struggling. Tesla (TSLA) rebounded this week, but from the lows of the bear market. Amazon.com (AMZN) is still below the moving averages. apple (AAPL), Microsoft (MSFT), nvidia (NVDA) and Google-parent the alphabet (The Google) are all above the 50-day lines, but below the 200-day lines.

The video embedded in this article reviewed and analyzed the market rally over the past week dexcom (DXCM), Avis Budget group (Sentences) and PSTG shares.

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Dow jones futures 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 in overnight Dow Jones futures contracts and elsewhere that does not necessarily translate into actual trading in the next regular session Stock market session.


Join IBD experts as they analyze actionable shares in the bullish stock market on IBD Live


Stock market rise

The stock market rally delivered strong gains during Thanksgiving week.

The Dow Jones Industrial Average rose 1.7% in the past week Stock market trading. The S&P 500 rose 1.5%. The Nasdaq Composite advanced 0.8%. Small Capital Russell 2000 rose 1%.

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The 10-year Treasury yield fell 11 basis points, to 3.71%.

US crude oil futures fell nearly 2% to $78.31 a barrel last week.

Exchange Traded Funds

between the The best mutual fundsThe Innovator IBD 50 ETF (fifty(up 1.1% last week, while the Innovator IBD Breakout Opportunities ETF)fit) increased by 2%. iShares Expanded Technology and Software ETF (IGV) rose 1.8%, with Microsoft and CRM shares the largest holding. VanEck Vectors Semiconductor Corporation (SMH) was up 0.8%, with NVDA stock a major component.

Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark(down 1.5% last week and the ARK Genomics ETF)ARKG) 1.9%. Tesla stock is a major holding across Ark Invest’s ETFs.

SPDR S&P Metals & Mining ETFs (XME) jumped 4% last week, just below a potential entry. Global Infrastructure Development Fund X US (cradle) rose 1.8% to the highest level in seven months. US Global Gates Foundation ETF (Planes) rose 2.3% in a good week for travel deals. SPDR S&P Homebuilders ETF (XHB) offering 1.85%. Energy Defined Fund SPDR ETF (xle) rose 0.2%, near record highs. SPDR Financial Selection Fund (XLF(Gain 2% and SPDR fund)XLV) rose 1.8%, both for the best performance in seven months.

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Top five Chinese stocks to watch now


Apple Stock, Megacaps

Apple stock fell 2.15% last week to 148.04, as Friday came, as Covid lockdowns in China weighed on iPhone production. AAPL found support at the 50-day line but the 200-day line was a resistance point.

Microsoft stock rose 2.6% last week to 247.49, moving further above the 50-day line. But stocks are still well below 200 a day. Nvidia stock jumped 5.6%, well above the 50-day line but still needs to be done to regain the 200-day line. Google stock is up 0.1%, just over 50 days.

AMZN stock is down 0.7%, even below the 21-day line, still near bear market lows.

Tesla stock rebounded from Wednesday’s bear market low of 166.19, closing the week up 1.5% at 182.56. But it’s still well below the 21-day lines, 50-day lines, and especially the 200-day lines.

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Stocks near buy points with accrued dividends

Pinduoduo earnings are due before Monday’s opening. Pinduoduo stock fell 6.4% to 65.69, but after a significant rally over several weeks. PDD stock has a buy point of 72.84 cups with a handle, and is currently finding support near the fast-rising 21-day line. But the base is 47% deep. And the stakes for China are high, with renewed lockdowns squeezing an already ailing economy.

Pure Storage’s earnings are due late Wednesday. PSTG stock fell 0.9% to 30.46 last week, continuing to hold the 21-day line. she has mug with handle Base with a buy point of 32.07, although investors may use 32.55 as a new entry handle after a short breakout attempt fails. Pure Storage now has a file Five tight weeks With 32.55 buy points. Meanwhile, NetApp earnings fell Tuesday night, with the storage giant back above its 200-day line.

The Dollar General earnings release is due early Thursday. DG shares fell 0.2% to 257.30 last week, also holding on to rival dollar tree (DLTR) Landed due to poor steering. Investors can still use 261.69 cup base Point purchase, according to MarketSmith Analysis.

Ulta Beauty reports late Thursday. ULTA stock rose 1.8% to 448.46 last week. The stock is extending from a cup handle buy point at 426.99 on the daily chart. On the weekly chart, Ulta Beauty is hovering around a key cup buy point at 451.40. But the recent gains came on light volume, while ULTA stock extended from its 50-day line.


These five stocks to watch are close to buying points

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Market rally analysis

The stock market rally had a solid week, and continued to bounce back from key support levels. On Friday, the Dow surpassed its Aug. 16 peak to reach its best level in seven months. Russell 2000 just regained its 200-day streak on Friday.

During the week, the Nasdaq has rebounded from the 21-day line, but it is still far from the 200-day mark. With Apple, Microsoft, Tesla, and so far top-tier software makers, this wasn’t really surprising.

The S&P 500 also made progress, closing back above the 4000 level. It is now within 1% of the 200 day EMA. On Aug. 16, the S&P 500 came within one point of that key level, but then sold off for nearly two months. A decisive move above the 200-day line, which coincides with the descending trendline from the tops, would indicate that the current uptrend is more than just a bear market rally.

But major economic reports loom large. On Wednesday, the JOLTS report for October will feature employment opportunities, and Fed Chairman Jerome Powell will speak later in the day. On Thursday, the Personal Consumption Expenditure Price Index, the Fed’s preferred measure of inflation, will be released, along with unemployment claims and the ISM manufacturing index. The November jobs report is due on Friday.

Inflation and employment data will reinforce expectations of a 50 basis point Fed rate hike on December 14 and may point to a further slowdown in the pace of interest rate increases early next year. Hot numbers could upend the Fed’s pivotal hopes once again.

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Positive market reaction to the economic data may trigger a wave of buy signals. Lots of stocks are being generated from a variety of sectors.


It’s time to market with IBD’s ETF Market Strategy


What are you doing now

The stock market is in good shape. Investors should take advantage of this upside with modest exposure.

In the very short term, investors may want to be careful about making new purchases. The market rally is facing a major technical test as jobs and inflation reports are likely to play a major role in how this plays out. Lockdowns in China due to the Covid virus are another wild card.

But it’s definitely time to get ready for new purchases. Build these watchlists, making sure to find potential purchasers from a variety of sectors. Then keep in touch with the market activity. Be prepared to make new purchases or downsize depending on market activity.

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Read The Big Picture Every day to keep up with the market trend, stocks and leading sectors.

Please follow Ed Carson on Twitter at @employee For stock market updates and more.

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MicroStrategy is at its lowest level since 2020 after the sales were revealed

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(Bloomberg) — Shares of MicroStrategy touched their lowest level since August 2020 after the enterprise software company, which in recent years has been known as the largest buyer of bitcoin, revealed its first sale of the token.

Most Read from Bloomberg

The stock fell 1.1 percent to $136.63 on Thursday, down 75 percent this year. Bitcoin rose less than 1% to around $16,590 and is believed to have fallen 64% since the start of the year.

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In a filing on Wednesday, MicroStrategy said it acquired approximately 2,395 Bitcoin between the beginning of November and December 21 through its subsidiary MacroStrategy, and paid out approximately $42.8 million in cash. It then sold 704 of the tokens on Dec. 22 for a total of about $11.8 million, citing tax purposes, before buying another 810 of them two days later.

Matt Malley, chief market strategist for Miller Tabak + Co. Step down as CEO. This news means they don’t seem to want to do that anytime soon.”

Overall, MicroStrategy held about 132,500 bitcoins worth over $4 billion USD as of December 27th. The company paid an average purchase price of $30,397 per bitcoin.

“Given MicroStrategy’s $2.4 billion in leverage, we believe the company may have a lot of leverage over Bitcoin, and may face some liquidity risk,” Jefferies analyst Brent Thiel wrote in a note on Wednesday. Thill has an “underperform” rating on the stock and a price target of $110.

Over the years of the pandemic, MicroStrategy has become well known for its Bitcoin takeovers, largely led by Saylor. Earlier this year, Saylor stepped down from that role and now serves as CEO at the company and continues to lead its bitcoin strategy.

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MicroStrategy was trading around $120 before Saylor first announced the company’s Bitcoin purchases in 2020. The stock reached an all-time high of $1,315 in February 2021.

(Updates to include the stock’s closing price in the second paragraph.)

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Bankman-Fried May File Petition in New York Federal Court Next Week Before Judge Louis Kaplan By Cointelegraph

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Former FTX CEO Sam Bankman-Fried is set to appear in court on the afternoon of January 3 to enter a lawsuit over two counts of wire fraud and six counts of conspiracy against him related to the collapse of cryptocurrency exchange FTX, according to Reuters. mentioned on December 28, citing court records. Bankman-Fried will appear before District Judge Lewis Kaplan in Manhattan.

Judge Kaplan was appointed to hear the case on December 27 after the original judge in the case, Ronnie Abrams, Resigned herself because of connections between FTX and the law firm Davis Polk & Wardwell, where her husband is a partner. The company provided advisory services to FTX in 2021.