Dow Jones futures leaned further on Wednesday night, along with the S&P 500 and Nasdaq futures. The stock rally rebounded modestly on Wednesday from key levels, hitting a streak of Nasdaq losses and ending, for now, with a series of weak closures in major indices.
X
Energy and steel stocks were the big winners on Wednesday, with Devon Energy (DVN) i Arcelor Mittal (MT) intermittent buy signals. But it was a wide advance. Palantir Technologies (PLTR), Microsoft (MSFT) i Copart (CPRT) also offered buying opportunities.
The shares of Microsoft and Devon are in the IBD classification. The shares of Copart, Arcelor Mittal and PLTR are on SwingTrader. The shares of Microsoft and Copart are long-term leaders of IBD. The CPRT shares were Wednesday’s shares.
The video embedded in this story analyzed the bullish action of the market and reviewed the actions of Devon Energy, Copart and MT.
Dow Jones Futures Today
Dow Jones futures rose 0.1% from fair value. Futures S&P 500 and Nasdaq 100 were up 0.1%.
Remember that overnight action on Dow futures and elsewhere does not necessarily translate into real trades at the next regular stock market session.
Join IBD experts as they analyze the actions that can be taken at the stock market rally on IBD Live
Stock market rally
The stock market rally began on Wednesday mixed slightly lower, but the pace of winning slowed.
The Dow Jones industrial average rose 0.7% in the stock market on Wednesday. The S&P 500 index rose 0.85%. The Nasdaq compound gained 0.8%. The small Russell 2000 chapter appeared 1.1%.
Crude oil futures rose sharply amid declining U.S. inventories and production in the Gulf of Mexico, which has remained sharply declining since Hurricane Ida. Copper prices also rose.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) was up 1.5%, while the Innovator IBD Breakout Opportunities (BOUT) ETF was up 1.3%. The iShares Expanded Tech-Software Sector ETF (IGV) was up 1%. The shares of MSFT are the first participations in IGV. The VanEck Vectors Semiconductor (SMH) ETF rose 0.35%.
The SPDR S&P Metals & Mining (XME) ETF rose 3.3% and the Global X US Development Infrastructure Development (PAVE) ETF rose 1.5%. The United States Global Jets ETF (JETS) rose 0.5%. The SPDR S&P Homebuilders (XHB) ETF was up 0.8%. The Energy Select SPDR (XLE) ETF jumped 3.7%, with a stake in DVN shares. The Financial Select SPDR ETF (XLF) gained almost 1%.
Reflecting more speculative stocks, ARK Innovation ETF (ARKK) rose 0.8% and ARK Genomics ETF (ARKG) 0.5%. Highly valued growth stocks are struggling again.
Five best Chinese stocks to watch now
Arcelor Mittal Stock
MT shares jumped 6.4% to 34.38, bouncing above their 50-day line and breaking a short downtrend, offering early entries. Mittal shares also regained an old 34.06 buy point, though it’s unclear whether investors should give that much weight.
Like many other steelmakers, MT shares rose in late July to early August, and then retreated, giving up much of their profits.
Wednesday, Steel dynamics (STLD) was guided in the third quarter and was bullish over the fourth quarter. STLD shares rose, along with Nucor (NEW), US Steel (X) and more, but MT shares had the clearest entry.
Copart Stock
CPRT shares appeared 3%, up from 148.91, in the heaviest volume in six months. According to MarketSmith analysis, it briefly exceeded the 149.16 buy point from a flat base just before closing. But action can now be taken: Copart shares jumped buy signals bouncing off their 50-day line, removing short-term resistance and breaking a short trend line. CPRT shares initially fell on September 9 after the recovered vehicle retailer’s gains, but closed again just above its 50-day line.
Devon Stock
Shares of DVN jumped from 7.3% to 30.33, near an official buy point of 30.65. But Devon shares broke a downward trend on the high-volume handle, offering early entry. Crude oil prices are rising due to reduced supplies, while natural gas prices are rising worldwide, providing a renewed tailwind for energy stocks. Cimarex Energy (XEC) withdrew an official point of purchase on Wednesday, although it quickly withdrew from consolidation lows in late August. The XLE ETF is back above its 50-day line, breaking a downward trend.
Microsoft shares
Shares of Microsoft rose 1.7% to 304.82, a record close to just below the all-time high of 305.84 as of August 20th. . At the end of Tuesday, Microsoft announced a $ 60 billion repurchase and increased the quarterly dividend by 11%.
Palantir Stock
PLTR shares rose 3.1% to 27.07, eliminating resistance in recent weeks and offering an alternative entry around 26.98. The data analytics company, in general, has traded slightly above the point of purchase of the lower base of 26.04 cups with handle since the end of August, but it did not feel like a “break”.
Market Rally Analysis
The stock market rally got a much-needed victory on Wednesday. It wasn’t a massive rebound and the volume mixed. But market concentration found support where it was needed. The S&P 500 regained its 50-day line and closed above its 21-day line. The Russell 2000 bounced from the next 200 days to 50 days. The Nasdaq rose from its 21-day line, the Dow rose, but is still below its 50-day high.
In addition, stocks closed near session highs, a big change from the bearish trend of solid openings and weak closings.
The S&P 500 has bounced successfully from its 50-day line several times in recent months. So everything seems to be a clock. And maybe this is the beginning of another good stretch. But don’t assume that will happen.
Oil and steel stocks were the big winners on Wednesday. These sectors are mercurial, driven by underlying prices. So if you want to play stocks like Mittal or Devon Energy, buying as soon as possible is very important.
But the market rally had a broad base, especially at the close.
Overall, the growth stocks worked well, although the MSFT shares certainly helped. The chips had a quiet session, but they stay right at highs.
Time the market with the market strategy of the IBD ETF
What to do now
The stock market rally has a good rebound. Investors could have added some exposure today, especially if they defended last week more or less. If the market continues to rise from these levels, investors could gradually step in and add more. Of course, Wednesday could be a mistake, with major indices rapidly declining recent lows and breaking key support. So don’t be in a hurry to increase exposure.
Read the overview every day to stay in sync with market leadership and leading stocks and sectors.
Follow Ed Carson on Twitter at @IBD_ECarson for stock updates and more.
ALSO AND MAY LIKE:
Get the next big winning value with MarketSmith
Best growth stocks to buy and see
IBD Digital: Unlock IBD premium stock lists, tools and stock analysis today