Thursday morning Dow Jones futures were slightly lower, along with S&P 500 and Nasdaq futures as crude oil prices continued to rise. An attempt to rally the stock market showed strong gains on Wednesday. Federal Reserve Chairman Jerome Powell pledged to be “smart” in raising interest rates, while a possible new round of peace talks between Russia and Ukraine helped.
Snow’s stock collapsed overnight. A highly valued and unprofitable cloud data warehousing company snowflake (snow) outnumbers views, but revenue growth slows while 2023 Financial Guidance Wasn’t Good Enough to satisfy investors. On February 10-11, Snowflake’s stock attempted to move above the 50-day line, but was turned away. Now SNOW’s stock could test its post-IPO low in May 2021.
micron technology (mo) And the Rambus (RMBS) early buy signals flashed in the Wednesday session, while Excel Technologies (ACLS) is about to do so. Other chip operations that are close to being feasible include Alpha and Omega Semiconductors (AOSL) And the from Broadcom (AVGO), which announces its earnings late Thursday.
Meanwhile, Apple’s stock rose strongly, moving towards the 50-day streak and diversified buy points. an Apple (AAPL) announced Wednesday a product event on March 8, with the low-cost iPhone 5G among the expected offerings.
Federal Reserve Chairman Powell told Congress He still supports a March rate hike, but has promised to be “smart” amid the “very uncertain” economic impacts of the Ukraine crisis. Powell also said he supports a quarter point move at the Fed’s March 15-16 meeting, and appears to have taken a half point higher off the table.
Russia and Ukraine have indicated they are open to new peace talks, but neither side appears ready to compromise. Russia continues to expand its invasion of Ukraine, while indiscriminate bombing increases the civilian death toll in major cities. Fuel, food, and other logistics remain a major problem for the Russian invasion force, according to US defense officials. It seems that Russian troops and equipment have suffered significant losses, largely due to logistical shortcomings.
Dow jones futures contracts today
Dow futures were down 0.15% against fair value. S&P 500 futures were down 0.2%. Nasdaq 100 futures fell 0.4%. While SNOW’s stock is listed on the New York Stock Exchange, the overnight crash has caused losses in a number of other high-value software stocks, including Bill.com (law Project) And the datadog (DDOG).
US crude oil futures rose 2% to exceed $113 a barrel.
stock market rise
The stock market rally started again with modest moves but it started to move, this time to the upside. Fed Chair Powell, who emphasized flexibility and modest moves in policy amid severe inflation and uncertainty over the Ukraine war, helped bolster stocks.
The Dow Jones Industrial Average rose 1.8% on Wednesday stock market trading. The S&P 500 jumped 1.9%. The Nasdaq Composite Index rose 1.6%. Small cap Russell 2000 jumped 2.4%.
Crude oil prices rose nearly 7% to $110.60 a barrel, to $112.51 on the day. This is the highest level since 2011.
Russia has trouble finding buyers or shippers for its crude and other commodities, even at deep discounts, raising global supply concerns. OPEC+ agreed to slowly continue unwinding production cuts in the era of the pandemic.
The 10-year Treasury yield rebounded 18 basis points to 1.865%, after falling 12 basis points on Tuesday.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) by 2.7%, while the Innovator IBD Breakout Opportunities ETF)fit) increased by 3%. iShares Expanded Technology and Software Fund (ETF)IGV) offer 1.5%. VanEck Vectors Semiconductor Corporation (SMH) jumped 3.3%. Micron and AVGO stocks are notable SMH holdings.
SPDR S&P Metals & Mining ETF (XME) continued to climb, adding 3.8%. Global Infrastructure Development Fund X US (cradle) rose by 3.3%. US Global Gates Foundation (ETF)Planes) rose 1.7%. SPDR S&P Homebuilders ETF (XHB) gained 2.9%. SPDR Specific Energy Fund (SPDR ETF)XLE(Advances 2.3% and Financial Select SPDR ETF)XLF) 2.6%. SPDR Healthcare Sector Selection Fund (XLV) rose 1.5%.
Chip stocks in, near the buying areas
Micron’s stock rose 8.2% to 93.30 on Wednesday, bouncing back above the 50-day line in above-average volume. MU stock contains 96.60 cup with handle Official point of purchase. But investors could have used a short trend line break inside the handle as an early entry. The handle cup pattern formed next to a much longer consistency than the handle cup, which had a short-lived breakout in December.
Rambus stock jumped 5% to 28.01 with a slight increase in volume. The chip tech company finished with less than 28.32 points buying a cup with a handle, according to MarketSmith. But investors could have bought RMBS shares as it bounced off the 50-day line and broke the trend line starting from the December 28 high at 28.89. The Relative force line Already high while the Rambus stock is still standing. This is a bullish signal and is marked by a blue dot at the end of the RS line.
ACLS stock rose 7.3% to 71.59, also rebounding from the 50-day streak. Investors can use 71.79, above Monday’s high, as an early entry. Official point of purchase is the 75.10 loose handle in a teacup base. ACLS’ stock RS line has already hit a new high. Axcelis manufactures specialized chip equipment such as ion implantation systems and high power implant devices
AOSL stock rose 4.6% to 53.39, moving away from the 50-day streak. Shares of the energy management chip maker have 59.48 entry points. But investors can use the movement above Tuesday’s high of 55.73 +10 cents as an early entry.
AVGO stock rose 2.75% to 585.78. Shares of the wireless chip and software maker need to cross the 50-day streak, with a potential for an early entry of 614.74. The official buying point for the AVGO stock is 677.86. Broadcom earnings due Thursday night.
All of these chip names have relatively modest earnings, which is a positive element in the current rate hike environment. RMBS stock has the highest PE at 43, but that’s not extreme for a growth stock, especially a stock that’s expected to generate a dividend yield in 2022.
Apple stock rose 2.1% to 166.56, but stopped short at the 21-day streak. Investors can view AAPL stock as having a file double bottom base With 176.75 Buy Points. Investors can use a trendline from the all-time high in early January to find an early entry just above the 50-day line. The RS line for Apple stock is just below record levels.
Market Rise Analysis
The stock market’s bullish attempt saw a strong move on Wednesday, with significant price gains on the Dow Jones, S&P 500 and Nasdaq.
However, trading volume decreased against Tuesday on both the NYSE and Nasdaq exchanges. This means that none of the indexes had an extension Follow-up day To confirm the new march.
This may be for the best. All major indices are still below their 21-day moving averages, which have served as a resistance level for most of 2022. Decisively settling this level appears to be the bottom line for investor confidence. Away from the 21-day line, the major indicators still have their February highs with the 50-day and 200-day lines as key levels, not necessarily in that order.
Russell 2000 is back above the 21-day streak, but the February and 50-day peak looms.
The market is still very much driven by the news. The market trend can quickly shift up or down based on the latest headline.
One positive thing: the feeling is going down. Only 29.9% of investment news releases are bullish, below the low of the pandemic crash. Meanwhile, 34.5% are downside. When the bears outnumber the bulls, it’s a strong sign that at least a short-term bottom is looming, though not necessarily immediately.
What are you doing now
The stock market’s attempt to rally strongly rebounded from Tuesday’s heavy selling, despite lighter trading volumes.
Investors can add quite a bit to their exposure, and perhaps branch off from the energy/commodity sectors that did well in 2022. Unlike late January and early February, quite a few stocks are setting up or flashing buy signals.
While this article has highlighted Micron stocks and other chip games, health insurance, cybersecurity, construction product and shipping companies are taking shape as well, along with more energy, mining and metals plays.
But until the major indicators regain the 21-day streak and the market rally has a day to follow, you should keep your exposure modest. Regression risks remain high.
This is an important time to work on your watch lists. Cast a wide net of stocks at the bases with strong RS lines. Then focus on a select list of actionable names or so close that you see them as a potential big winner.
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