Finance

Market rally is hot, but here’s what to watch; five stocks in buy zone


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




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The stock market rally continued last week, with the S&P 500 index breaking through 5,000 points for the first time; the Nasdaq Composite Index rose across the board, briefly breaking through 16,000 points and approaching its all-time high.

Several large AI-related income gaps have emerged, including Arm Holdings (arm), Palantir Technology (PLTR) and Yunyao (net) The reports also boosted other chip and software stocks focused on artificial intelligence and cloud computing.

UiPath (path), Cathie Wood AI’s big shot surged on Friday, flashing a buy signal. reincarnation (Internet of things), another artificial intelligence stock, is also in buy territory. SPS Business (SPSC) breaks out, at the same time intracellular therapy (ITCI) and Shift payment (Four)It works.

But with the market’s rally looking sustained, investors should be cautious about new purchases.

Earnings season is still in effect. Arista Networks (Arnett), rhythm design system (CDNS) and Medipes Holdings (MEDP) reported Monday night, while Shopping (shop) and data dog (DDOG) will be due early Tuesday.

Arm stock and Shopify are online IBD rankings. Cadence Design Library is available IBD Long-Term Leader Arm, Arista, Samsara, Cloudflare, Datadog and Intra-Cellular are among them IBD50Arista, Shopify, Datadog and Cadence Design are all there IBD Large Cap 20.

Dow Jones Futures Today

Dow Jones futures, S&P 500 futures and Nasdaq 100 futures open at 6 p.m. ET on Sunday.

Remember what you did that night Dow Jones Futures and other places that won’t necessarily translate into actual transactions on the next regular basis stock market Meeting.


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Stock market rebounds

Stocks enjoyed another strong week of gains, led by artificial intelligence and other technology companies.

The Dow Jones Industrial Average rose just a fraction last week stock market tradingThe S&P 500 Index rose 1.4% and exceeded 5,000 points; the Nasdaq Index rose 2.3% and briefly exceeded the 16,000 point mark.

The small-cap Russell 2000 index rebounded sharply 2.4% in a week after testing the key level, closing above the key 2,000 level for the first time this year.

As the Nasdaq and Russell 2000 recovered later in the week, more stocks issued buy signals. Some of these stocks have huge profit gaps, such as Palantir, but not all.

Still, the number of buying opportunities remains fairly limited, while those for many large-cap leading stocks have increased significantly.

This is definitely an AI-led rally. Not only have artificial intelligence stocks made huge gains, technology giants also plan to invest heavily in promoting the development of artificial intelligence. That bodes well for artificial intelligence chip and software stocks, which are reflecting it.

Market leadership was broader than artificial intelligence and technology, with housing, construction and industrials stocks performing well, as well as many travel, financials and healthcare stocks.

However, the Nasdaq is currently 6.8% above its 50-day moving average. The tech-heavy composite index is likely to extend further, but the risk of a pullback will continue to increase. Many AI leaders are becoming extremely stretched.

The 10-year Treasury yield jumped 16 basis points to 4.19%.

U.S. crude oil futures rose 6.3% to $76.84 a barrel last week.

ETF

Among growth ETFs, iShares Expanded Tech-Software Sector ETF (IGV) rose 2.9%, with PLTR, UiPath, SPS Commerce and Samsara all in IGV. VanEck Vectors Semiconductor ETF (SMH) soared 6.6%.

SPDR S&P Metals & Mining ETF (XME) fell 2% last week. Global X U.S. Infrastructure Development ETF (pave) rose 2.1%. American Global Jet (Jeters) rose 2.9%. SPDR S&P Homebuilders (Xinhong) rose 2.7%. Energy Select SPDR ETF (XLE) fell slightly by 0.25%, with Healthcare Select Industries SPDR Fund (XLV) raised 1.4%. Industrial Select Sector SPDR Fund (XLI) rose 1.2%.

Financial Select SPDR ETF (XLF) edged up 0.3%, with the SPDR S&P Regional Banking ETF (Korea Real Estate Association) fell 1%.

The ARK Innovation ETF reflects stocks with more speculative stories (alke) rose 6.3% last week. ARK Genomics (arkg) rose 4.3%. UiPath stock is among the top five holdings of Cathie Wood’s ARK Invest.


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Stocks in buy zone

Samsara shares rose 9.5% this week to 35.47, rebounding from the 50-day line on Thursday and breaking through a short-term high of 35.13 on Friday. The official buying point of IOT is 36.91 Market Smith Analysis.

SPS Commerce rose 14.8% to 211.08 on Friday, breaking above 198.35 flat Buy some. At this point, SPSC stock is extended, but investors can look for opportunities to pull back into buy territory, or perhaps a hold or tightening pattern. Late Thursday, the supply chain management software company reported a 19% rise in fourth-quarter earnings and sales while providing bullish guidance.

Shift4 stock rose nearly 2% this week to 77.44, back above the 76.51 buy point. However, prices did not close above resistance at 77.51, which would clear most of several weeks of tense trading.

UiPath shares surged 12.4% to 26.35 last week, including an 8.2% gain on Friday. Cathie Wood share price briefly exceeded official forecast of 26.51 buy some On Friday morning, UiPath stock rebounded from its 50-day line and hit a short-term high of 24.40 on Thursday.

Intra-Cellular Therapies shares rose 8.2% to 72.77, moving toward a 74.17 buy point. The stock can still trade off the short-term high of 70.15 cleared on Thursday.

What to do in the stock market now

In this age of TikTok, patience is a lost art. The market rally has been performing well but looks a bit prolonged. And, there aren’t many stocks to buy.

You can try some incremental purchases, but now is not the time to increase your risk. Depending on your beliefs and trading style, you may consider part of your profits to be greatly extended winners.

Mostly, this is time to enjoy the ride.

You really need to keep running through the screens looking for possible settings. Have an exit strategy ready.

read overall view Stay up to date with market direction and leading stocks and industries every day.

Please follow Ed Carson’s thread: @edcarson1971,X/Twitter on @IBD_ECarson With the blue sky @edcarson.bsky.social Get stock market updates and more.

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