Finance

Why is this market so dangerous; is it time to sell ELF Beauty?


Dow Jones futures edged higher overnight, as did S&P 500 futures and Nasdaq futures.




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Stocks ended narrowly higher on Wednesday as economic data was mixed and Federal Reserve Chairman Powell said the outlook for interest rate cuts would not change.

meta platform (Mehta), pivot point (hub) flashes a buy signal. Google parent company letter (Google) is in the buy zone while Arista Networks (Arnett) recycled buy someGoogle’s stock price fell slightly in late trading due to the heated discussion about artificial intelligence search.

at the same time, Nvidia (NVDA) is working quietly at the base along with several other artificial intelligence chip manufacturers.

Elf beauty (Very low frequency), a huge winner since mid-2022, plunged Wednesday after retailers ultimate beauty (ULTA) warned of weak demand. ELF stock fell below long-term support, giving a sell signal.

Investors should remain cautious in a market that is currently trading sideways, especially with Friday’s jobs report looming.

Nvidia, META stocks rise IBD rankings. Meta and Arista stocks are now online swing trader. Nvidia Stock, Meta Platforms, HubSpot, Arista Networks are all on IBD 50 List. ELF Beauty is on Wednesday Daily IBD Stock.

Dow Jones Futures Today

Dow Jones futures rose 0.2%, S&P 500 futures rose 0.3% and Nasdaq 100 futures rose 0.5%.

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

Wednesday’s stock market rally was relatively muted.

Before the market opened, the ADP employment survey showed private employment was slightly stronger than expected in March, but the ISM services index released at 10 a.m. ET unexpectedly fell, indicating a slowdown in economic growth in March.

Federal Reserve Chairman Jerome Powell said policymakers are in no rush to cut interest rates, largely reiterating recent comments, but he also said recent strong economic reports have not “substantially changed” the trend of slowing inflation and prospects for rate cuts.

The Dow Jones Industrial Average fell 0.1% on Wednesday stock market tradingIt recovered the 21-day moving average during the session and then retreated. The S&P 500 edged up 0.1%, with Ulta Beauty and ELF stocks the main losers. The Nasdaq rose 0.2%.

The small-cap Russell 2000 index rose 0.5%, back above its 21-day line.

U.S. crude oil prices edged up 0.3% to $85.43 a barrel, having risen 5% in the past four sessions.

The 10-year Treasury yield fell 1 basis point intraday to 4.35%, retreating from a new high of 4.43% in 2024, following ISM service data and a speech by Federal Reserve Chairman Powell.

ETF

Among growth ETFs, iShares Expanded Tech-Software Sector ETF (IGV) rose 0.2%. VanEck Vectors Semiconductor ETF (SMH) rose 0.4%. Nvidia stock is by far SMH’s largest holding.

The ARK Innovation ETF reflects the more speculative story stocks (alke) edged up 0.3%, with the ARK Genomics ETF (arkg) closed plane

SPDR S&P Metals & Mining ETF (XME) rose 2.2%, with the Global X U.S. Infrastructure Development ETF (pave) exceeds 1%. U.S. Global Jets ETF (Jeters) fell 0.5%.

SPDR S&P Homebuilders ETF (Xinhong) and Energy Select SPDR ETF (XLE) rose 0.7%. Healthcare Select Sector SPDR Fund (XLV) fell 0.1%.

Industrial Select Sector SPDR Fund (XLI) rose 0.5%. Financial Select SPDR ETF (XLF) closed down a fraction.


Tim the market with IBD’s ETF market strategy


ELF Beauty Stock

ELF stock has been the quintessential book stock for more than a year, soaring 983% from its May 2022 lows to its early March peak.

But the stock price has been pulling back in recent weeks, and on Wednesday, ELF Beauty plunged 11.9% to 163.77, breaking through the 10-week line on heavy volume. This is the first time that ELF stock has fallen below this key level since November last year.

The cosmetics maker plunged on Wednesday as the beauty products retailer ultimate beauty (ULTA) warned of weak demand at the start of the season. ULTA shares plunged 15.3%, falling below the 200-day line.cosmetics manufacturer Coty (Coty) and Estee Lauder (EL) fell 6.3% and 4.2% respectively.

Long-term ELF stock holders should probably at least take profits. They could choose to see if ELF rebounds before Friday’s close.

Stocks near buy point

Meta shares rose 1.9% to 506.74, breaking through 500 points and extending a rebound from the 10-week line. This provides a buying opportunity. Meta may be building its first base in 2024.

Google shares edged up 0.2% to 154.93, staying within the 152.15 buy point cleared on Monday. Shares edged lower on Wednesday night after the Financial Times reported that Google was considering charging for artificial intelligence searches.

Google’s Waymo self-driving service is partnering with Uber Eats to provide food delivery in Phoenix.

HubSpot stock rose 2.7% to 626.70 on strong volume, retaking an early trendline entry. HUBS stock has a 660-point buy point from the flat bottom, basic pattern.

Arista shares rose 2.7% to 298.79, rebounding from the 21-day line again and regaining the flat bottom buy point of 292.66 Market Surge Analysis.

NVIDIA Stock

Nvidia stock fell 0.55% to 889.64, once again finding support at the 21-day moving average. NVDA stock is still weeks away from a possible bottom, but more time is needed. Aggressive traders can use the move above 904-905 as a breakout opportunity. Start or add a share.

It’s no coincidence that many other AI stocks are consolidating around key support, including Broadcom (AVGO), Advanced Micro Devices (AMD), British Semiconductor (TSM).

what to do now

Some stocks have peaked or are trying to break above the 10-week line, providing possible buying opportunities. These may work, especially if the market rebounds quickly, so investors can try a position or two.

But sideways markets are clearly the most challenging for growth investors. Corrections or bear markets keep investors away. But in range-bound markets, stocks often show enough strength to attract buyers before pulling back. Promising stock support could look worse with relatively small declines.

While Meta, HubSpot and Arista Networks closed in the upper half of their intraday ranges, Salesforce.com (customer relationship management) largely erased Wednesday’s gains, while Uber Technologies (Uber) fell slightly.

Friday’s jobs report could have a major impact on markets, especially with U.S. Treasury yields in focus.

Ultimately, sideways markets tend to be constructive if investors have the patience to wait. A slightly longer pause would allow more stocks to set the stage, including Nvidia and other artificial intelligence chip companies leading the market higher.

So keep an eye on your watchlist for those emerging bases and other setups.

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

Please follow Ed Carson’s thread: @edcarson1971 andX/Twitter @IBD_ECarson Get stock market updates and more.

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