Dow futures were little changed early Wednesday, along with S&P 500 futures and Nasdaq futures, while Treasury yields continued to rise sharply. The stock market rally tumbled and Treasury yields jumped on Tuesday as a top Federal Reserve policy maker called for a “rapid” reduction in the Fed’s massive balance sheet.
solar energy company SolarEdge Technologies (SEDGand uranium ETFs (North Shore Global Uranium)URNM) and Global X Uranium (URA) The buy signals flashed on Tuesday morning, but they pared the gains or reversed lower as the broader markets retreated.
For megacaps, Apple stocks, Tesla (TSLA), Microsoft (MSFT) and Google Parent the alphabet (Google) They all fell on Tuesday, although the charts look good. Tesla stock pulled back from entering the trend line, but could use a proper pause after a quick sprint. an Apple (AAPL) Technically dropped below a purchase point, but now has a convenient handle, and introduces a new operator buy point. Microsoft and Google stocks also have new knobs and buy points on their daily charts.
Tesla, Microsoft and LLY stocks are in the running IBD Leaderboard. Microsoft and Google shares Long-term leaders of IBD. TSLA, Microsoft and Google on defect 50. The uranium ETF URNM was IBD stock today. Google was IBD 50 for monitoring.
The video included in this article discusses the market rally retreat and analyzes the URNM ETF, Google, and LLY stocks.
Musk joins Twitter’s board and steals Trump’s thunder
at the same time, Twitter (TWTR) crossed the 200-day streak on Tuesday morning to 54.57 on news that Tesla CEO Elon Musk will be joining the social network’s board of directors. TWTR pared its gains to 2% at 50.98. Twitter stock rose 27% Monday as Musk disclosed a 9.2% stake.
Musk’s Twitter move appears to be stealing Donald Trump’s thunder as the Truth Social faces challenges. Digital world acceptance company. (DWAC), the partner of SPAC’s merger with Truth Social, Trump’s media and entertainment company, rose 16% to 48 on Tuesday, dropping on the day to its lowest level since early December. DWAC shares slid 10% on Monday.
Trump’s Truth Social network has been plagued by technical problems, as key technology executives departed on Monday. App downloads decreased. Also, the former president did not post Trump on his own site, removing the main added value of Truth Social versus Twitter and Facebook (FB).
Finally, DWAC stock has lost more than half of its value since it reached 101.87 on March 2.
Brainard wants the Fed for a quick cut in the balance sheet
Fed Governor Lyle Brainard said Tuesday that she wants the central bank to start reducing its massive balance sheet soon and “at a rapid pace.” “I expect the balance sheet to shrink much more quickly than it did in the previous recovery,” added Brainard, who was nominated for the Fed vice chair.
Federal Reserve Chairman Jerome Powell has indicated for some time that policymakers will begin to shrink their balance sheet, but Brainard’s comments have indicated that it is likely to come soon. Brainard was seen as more pessimistic than Powell, but in 2022 there were no doves. On top of the balance sheet cuts, markets were expecting a half-point rise in each of the next three meetings.
On Tuesday, Fed Governor Esther George said a 50 basis point hike was an option for the early May meeting.
Treasury yields soared on the Fed’s latest hawkish signal, with the 10-year yield slipping back above the two-year yield.
On Wednesday, the Federal Reserve will release the minutes of its March policy meeting.
Dow jones futures contracts today
Dow Jones index futures rose against fair value. S&P 500 futures were flat and Nasdaq 100 futures were down 0.1%.
The 10-year Treasury yield rose 6 basis points to 2.63%. The two-year yield jumped 9 basis points to 2.59%, but the yield curve is still slightly positive.
stock market rise
The stock market rally pulled back on Tuesday, closing near session lows. The Dow Jones Industrial Average fell 0.8% on Tuesday stock market trading. The S&P 500 fell 1.3%. The Nasdaq Composite Index fell 2.3%. Small cap Russell 2000 also lost 2.3%.
US crude oil prices opened higher but fell 1.3% to $101.96 a barrel. Natural gas futures jumped nearly 6%. The EU is moving towards banning imports of Russian coal, but it is not going after Russian crude or natural gas.
The 10-year Treasury yield rose 14 basis points to a three-year high of 2.56% on the back of Brainard’s hawkish comments on the balance sheet. The two-year yield is up 7 basis points to 2.5%, but that means the yield curve is no longer inverted.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) slipped 3.75%, while the innovative IBD Breakout Opportunity Fund (fit) decreased by 1.7%. iShares Expanded Technology and Software Fund (ETF)IGV) fell 2.5%, and Microsoft stock IGV Holdings Inc. VanEck Vectors Semiconductor Corporation (SMH) sold at 4.3%.
SPDR S&P Metals & Mining ETF (XME) reversed lower, down 2.4%. Global Infrastructure Development Fund X US (cradle) gave up 1.8%. US Global Gates Foundation (ETF)Planes) down 1.1%. SPDR S&P Homebuilders ETF (XHB) lost 2.1%. SPDR Specific Energy Fund (SPDR ETF)XLE) decreased by 1.6%. SPDR Financial Choice Fund (SPDR)XLF) decreased 0.6%. SPDR Healthcare Sector Selection Fund (XLV) rose 0.2%.
Shares reflect more speculative stories, the ARK Innovation ETF (see you) is down 5.6%, back below the 50-day line. ARK Genomics ETF (ARKG) sold 5.3%, only holding 50 days. Tesla stock continues to rank number one among Ark Invest’s ETFs.
Apple stock fell 1.9% to 175.06, falling below 176.75 double bottom Point purchase. But now AAPL stock has formed a handle on the daily chart, giving it 179.71 buying points. Strictly speaking, the iPhone giant had a handle on its weekly chart after last week, but it was thin. With the daily handle sculpted, investors will likely focus on this entry.
The Relative force line Apple stock is right at a new high.
MSFT stock fell 1.3% to 310.88. The software and cloud computing giant now has a handle with 316.05 points of purchase. The midpoint of the handle is just above the midpoint of the base, so there is some upper resistance.
Google stock fell 1.7% to 2811.82. This gives GOOGL stock a handle on its cup base on the daily chart with 2,875.95 buy points. The internet giant had an index on the weekly chart with the same entry, as did Apple, although Google was more important. The RS line for Google stock is not far from the highs, but it has been moving sideways since late July.
SEDG . stock
SolarEdge stock rose to 344.61, but reversed, falling 2% to 328.69. SEDG stock crossed the 335.67 . level during the day cup with handle Point buy again, according to MarketSmith. There is no doubt that the solar energy products company has some big swings during the day. Investors may consider initiating a position in SEDG stock if it again finds support at the 21 day moving average.
TSLA stock fell 4.7% to 1091.26 Tuesday after jumping 5.6% Monday following record first-quarter delivery numbers. Tesla stock contains 1,208.10 cup base Point purchase. On the day, the shares hit 1,152.87, a three-month high and above a shallow trend line. After a sharp rally since March 14, Tesla’s stock could use a real pause, with a big handle that is actually shaking up some vulnerable stockholders.
Tesla Shanghai has been in lockdown since March 28, as the city has been under intense lockdown as Covid cases rise there.
Market Rise Analysis
The stock market rally eased Tuesday, with heavy losses among technology companies and small businesses.
It appears that the major indicators are forming handles after a period of significant increase. So far, the Dow, S&P 500 and Nasdaq indices appear to be operating normally. If the S&P 500 and Nasdaq drop below their 21-day moving averages, that will be even more worrying.
But there is a noticeable weakness beneath the surface.
Technical stocks look weak. Yes, Apple stock is set up near record levels. Microsoft and Google stock are getting close to buying points, even though neither have made any headway over the past several months.
Meanwhile, chip stocks fell amid reports of weak demand for computers and consumer electronics. Software and other high-value growth names are under pressure due to rising Treasury yields. Tesla is one of the only three-digit PE stocks that has been booming, which is an impressive and troubling distinction.
Shipping stock is also poor. Trucks, trains and other “land” shippers continue to sell, while ocean-going containers and dry bulk carriers are now losing steam.
On the upside, energy and commodities continue to do well, whether it’s oil and gas, coal miners, solar stocks or uranium ETFs. But it is subject to significant intraday swings and reversals from higher levels, as URNM and SEDG stock showed on Tuesday.
Defense stocks like Lockheed Martin (LMT) after a sharp early rise in the Russian invasion of Ukraine.
Medical stocks are doing very well quietly, offering defensive growth, often with low to modest PE ratios. These include health insurance companies such as UN Stocks as well as pharmaceutical companies such as LLY Stock. Edwards Live Science (EW) And the Shock Wave Medical (SWAV) operate on the right side of the rules. Abvi (ABBV) steadily for several months, although well extended.
Insurance stocks like AIG (AIG) hanging around points of purchase. Insurance companies can do well in an environment of rising prices and not particularly care about the yield curve.
Real estate investment trusts for storing property work well, despite the higher prices. warehouse operator Prologies (PLD) in the buy area. Extra storage space (EXR) Among those that carved possible handles on new bases.
What are you doing now
The stock market rally does not show distress on the major indicators. But investors should focus on what works, not the sectors they find particularly attractive. The energy and commodity spaces continue to function well. Medicines from a variety of combinations go well.
If you already have a lot of exposure to those areas, you may just want to sit up hard.
If you are in a number of developing stocks, you should probably cut back. Simply cutting losers or exiting winners who give up on gains may reduce your exposure to growth without any overt portfolio management.
In general, investors will likely take a cautious approach. Watch how the market pullback happens before taking big new positions. Keep refining your watch lists. If the market rally regains momentum, you can take advantage of the best stocks. If the market rally starts to falter seriously, you will be prepared to reduce your modest exposure even more.
Read The Big Picture Every day to stay in sync with the trend of the market, stocks and leading sectors.
Please follow Ed Carson on Twitter at Tweet embed For stock market updates and more.
You may also like:
“Devoted student. Bacon advocate. Beer scholar. Troublemaker. Falls down a lot. Typical coffee enthusiast.”