Dow Jones futures open Sunday night along with the S&P 500 futures and Nasdaq futures, with Bitcoin rising ahead of the launch of a Bitcoin futures ETF. The stock market meeting had a powerful week that went back to a confirmed rally.
It is a green light for investors to increase exposure again, but beware of your speed and do not be distracted.
Dow Jones giants Microsoft (MSFT) and Goldman Sachs (GS) offer early contributions now. It does, too Tesla (TSLA) rival Xpeng (XPEV), where other Chinese EV manufacturers gather and TSLA shares continue their steady rise. Expedia (EXPE) is just during a breakout while Old Dominion Freight Line (ODFL) flirts with a traditional buy point.
Bitcoin ETF launch
Meanwhile, Bitcoin rose above $ 62,000 on Friday, extending a major run in recent weeks. The Bitcoin price was over $ 61,000 on Friday night.
ProShares announced late Friday that their Bitcoin futures ETF will begin trading next week.
The Securities and Exchange Commission has not formally approved ProShares Bitcoin futures ETF. It may never make it official. But it could start trading after Monday if the SEC does not object. It will be thirsty for what are likely to be more Bitcoin futures ETFs, bringing cryptocurrency even closer to ordinary investors. Grayscale is reportedly close to filing an application for spot price Bitcoin ETF.
Earlier this month, SEC President Gary Gensler made it clear that he was not considering a China-like ban on Bitcoin and other cryptocurrencies.
In addition to Bitcoin, Ethereum and other cryptocurrencies have increased. Then Bitcoin-related stocks, such as Marathon Digital Holdings (MARA), Coindesk (COIN) and Bitcoin Trust in shades of gray (GBTC). Tesla also still has Bitcoin holdings.
The MARA share rose 24% last week to 48.89 after rising 19% in the previous week. On Friday, the Marathon sprinted past its short-term high in early September at 44.97. GBTC shares jumped 12% last week. The COIN stock jumped 13% and broke a trend line on Friday after re-emerging from its 50-day line the day before.
The video embedded in this article reviewed the weekly market action and analyzed Goldman, Expedia and ODFL stocks.
Dow Jones Futures today
Dow Jones futures open at 6pm ET on Sunday with S&P 500 futures and Nasdaq 100 futures.
News about coronavirus
Coronavirus cases worldwide reached 240.82 million. Covid-19 deaths topped 4.9 million.
Coronavirus cases in the United States have affected 45.73 million with deaths over 743,000.
Stock market meeting
The stock market rally looked sick to start the week but roared louder.
The Dow Jones Industrial Average rose 1.6% last week stock market trading. The S&P 500 index rose 1.8%. Nasdaq composition jumped 2.2%. Small-cap Russell 2000 gained 1.6%, despite falling on Friday.
Among best ETFs, Innovator IBD 50 ETF (FFTY) rose 3.8% last week, while the Innovator IBD Breakout Opportunities ETF (BOUT) rose 2%. IShares Expanded Tech-Software Sector ETF (IGV) shot up 4.85%, with Microsoft stock up a notch. VanEck Vectors Semiconductor ETF (SMH) rose 3.1%.
SPDR S&P Metals & Mining ETF (XME) jumped 5.5% last week and the Global X US Infrastructure Development ETF (LANE) advanced 2.5%. US Global Jets ETF (JETS) slipped 1.7%. SPDR S&P Homebuilders ETF (XHB) rose 3%. Energy Select SPDR ETF (XLE) increased 1.3%, the fifth consecutive weekly advance. Financial Select SPDR ETF (XLF) increased 1.2% after withdrawal early in the week. The GS stock is a remarkable XLF holding.
Reflects more-speculative history stocks, ARK Innovation ETF (ARKK) jumped 4.7% and the ARK Genomics ETF (ARKG) 4.3%, both rebounds from downtrends The Tesla share remains the top holding across ARK Invest’s ETFs. Several ARK ETFs have also invested in COIN shares.
Stocks near points of purchase
The Expedia stock rose 1.1% last week to 171.99, with all that and more at Friday’s 1.8% advance. The travel site closes in on a purchase price of 175.47 on one cup with handle. In recent weeks, Covid cases have tumbled in the United States and around the world, and restrictions have also fallen.
Booking.com (BKNG) is already in a shopping zone along with many other travel games.
Goldman shares rose 3.4% to 406.07 last week. On Friday, stocks rose 3.8%, moving above their 50-day line and breaking a trend line in large volume. It offered early access to GS warehouse. The official buy buy point is 420.86 from a flat bottom. Goldman easily beat EPS and revenue news early Friday.
ODFL shares jumped 5.2% to 302.51 last week. Intraday Friday, it briefly topped a 304.32 flat-buy point, according to MarketSmith analysis. It can already be used from a 50-day line-bounce. Old Dominion gathered on Friday as another trucking company JB Hunt (JBHT) increased by accelerating earnings growth. A couple of other haulage companies also did well, too Go out (GO OUT) clear a point of purchase. But ODFL shares relative strength line hit a new high Friday on a weekly chart, giving a blue dot in MarketSmith.
Microsoft stock rose 3.2% to 304.21 last week, regaining its 50-day line and offering early access. The MSFT stock closes in at a 305.94 flat-buy point, with its RS line just below highs.
Xpeng shares rose nearly 14% last week to 42.80, breaking a downward trend in its bottom base after regaining its 50-day line earlier in the week. The XPEV stock has a traditional buy point of 48.08.
It was a good day and week for car manufacturers. Among Xpeng’s peers, Li Auto (BY) jumped 7.55% last week and also broke above its 50-day line and a trend line. Nio (NIO) achieved 5.3% and reached its 50-day line. WORLD (I WILL) rose 10%, regaining its 50-day line and flirting with an actual breakout.
In terms of Tesla stock, the EV giant jumped 7.3%, its eighth in a row weekly gain. Strong China sales and an FSD Beta rollout gave rise to TSLA shares with Tesla earnings in the coming week.
Market Rally analysis
The major indices started the week by continuing to close at the lows of the session. But Wednesday had a decent end, while Thursday’s follow-up day confirmed the new uptrend. The Dow Jones and S&P 500, which just closed over their 50-day lines on Thursday, extended those gains on Friday. Rising energy and metal prices and rising government bonds contributed.
Nasdaq nudged above its 50-day line on Friday, even though it is just below its 10-week line. The Nasdaq 100 is just below both. Bond yields are a problem for growth names, but they generally performed well overall.
Meanwhile, there were so many action stocks last week, even when the market fell.
It includes many growth names. Some are certainly expanded now, but many others are not.
This new market rally shows some broad strength. The finances held up reasonably well as the Treasury’s interest rates than GS shares and others had a strong end to the week. Truck companies like ODFL stocks are flashing with buy signals along with a variety of travel-related plays. EV and other automakers, such as XPEV shares shifting to a higher gear. Solar cell stocks are coming back. Some retail names are near purchase zones. Mining and metal stocks may turn around.
Do not forget the oil and gas stocks, which are rising.
Keep in mind that if a confirmed market meeting is going to fail, it usually does so pretty quickly. Can the Nasdaq decisively clear its 50-day line and move toward record highs?
What should I do now
We are in a confirmed stock market meeting. If you hesitated to make new purchases during the correction, that obstacle is gone. This is a time to take advantage of a new uptrend. How much exposure depends on whether you can find stocks to buy. There seem to be a number of stocks that can be used from a wide range of sectors.
Has a diverse portfolio of managers who can help you cope with different sector changes. After driving strongly recently, it is possible that growth stocks will stop, especially if the Treasury’s dividend goes another tear. If you have some shares extended, you can take some partial profits to lock in gains and free up capital.
At least throw a wide net while running your monitors to build your watch lists.
The earnings season will continue to rise with dozens of notable stocks reporting next week and even more the following week. Earnings can be a tailwind or headwind for the market meeting, different sectors and of course individual stocks. Pay close attention when your stock reports, as well as your stocks’ main rivals, customers or suppliers. You can decide to take partial profits or pay out prior to earnings, or let it run if you have sufficient capital.
Keep being flexible and pay attention. Investors must be prepared and willing to switch from defense to offensive and back again, as market conditions warrant.
Read The big picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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