Dow Jones futures were little changed overnight, along with futures for the S&P 500 and futures for the Nasdaq. The stock market rally picked up on Tuesday, with the S&P 500 retaking the 4,000 level.
deere (Delaware) reports earnings early Wednesday, with DE shares in a buy zone. Deere’s earnings and guidance could be important to a variety of farm stocks, including CF Industries (CF) Y Archer-Daniels-Midland (wdm), as well as machinery manufacturers such as Caterpillar (CAT).
Energy stocks continue to perform well. sun leader phase energy (ENPH), coal producer Peabody Energy (BTU), refiner CVR energy (IVC), natural gas producer EQT Corporation. (TEQ) and LNG stocks Excellent Energy (USA) are all close buy points.
EE shares broke on Wednesday, with Enphase moving back into a buy zone. The shares of BTU, CVR Energy and EQT are actionable.
Dow Jones Futures Today
Dow Jones futures rose against fair value. S&P 500 futures were flat. Nasdaq 100 futures edged lower.
The stock market rally opened mixed on Tuesday but gained momentum from broad-based gains, closing near session highs.
The Dow Jones Industrial Average rose 1.2% on Tuesday stock trading. The S&P 500 index and the Nasdaq composite rose nearly 1.4%. The small-cap Russell 2000 rose 1.1%.
The 10-year Treasury yield fell 7 basis points to 3.76%. But the two-year Treasury yield, more closely tied to Fed policy, held broadly steady at 4.53%.
The dollar, after rising for the previous three sessions, fell back on Wednesday. The dollar has fallen significantly since late September, especially since early November.
US crude oil prices rose 1.1% to $80.95 a barrel, continuing a rally from Monday’s short-lived slide. Gasoline futures rose 4.3%, good news for refiners. Natural gas futures rose after falling more than 2% intraday.
Between best ETFsthe Innovator IBD 50 ETF (ffty) jumped 3.4%, helped by a number of energy and metals stocks. The iShares Expanded Technology Software Sector ETF (IGV) rose 1.8%. The VanEck Vector Semiconductor ETF (HMS) burst 2.9%.
SPDR S&P Metals and Mining ETF (XME) gained 3.2%, and the Global X US Infrastructure Development ETF (TO PAVE) added 1.3%. SPDR S&P Home Builders ETF (XHB) rose 1.9%. The Energy Select SPDR ETF (XLE) rose 3.1%. The SPDR Select Healthcare Sector Fund (XLV) rose 0.9% to a seven-month high.
Energy stocks near points of purchase
Enphase shares rose 4% to 320.44, closing above 316.97 mug with handle Buy point for the first time. However, the last three times ENPH’s stock has risen in these areas, it has reversed lower. Enphase stocks tend to see big swings on a daily basis. Therefore, investors could see ENPH shares pull back to its rapidly rising 21-day moving average.
BTU shares rose 6.7% to 29.62, just below a buy point of 30.15 in a seven-month consolidation. Tuesday’s move broke the mango trend line, offering an early entry. However, BTU shares are 9.3% above its 21-day line and 17% above its 50-day line. The mango was formed after strong earnings from Peabody Energy.
CVR Energy shares rose 4.85% to 40.85, back above an old buy point of 39.81 that could still be considered valid. In addition, CVI shares have a three weeks tight pattern with an entry 42.31. Breaking above 41.31 could offer an early entry into that tight pattern.
Shares of EQT were up nearly 6% at 43.79, breaking above the 50-day line again after rallying from the 200-day line on Monday. Stocks are breaking a falling trend line. The official buy point is 52.07.
EE shares were up 9.6% at 30, surpassing a cup-handle buy point of 28.49 on above-average volume, according to MarketSmith Analysis. That move toward a record close cleared a slew of transactions that have taken place since Excelerate Energy’s April IPO. EE shares had seen early entries on Friday and Monday, although trading was below normal on those days. Excelerate is now slightly extended from the buy zone and well extended from the 21-day line.
Market recovery analysis
The stock market rally continues to show constructive action, trading in a tight range after a modest pullback and support last week. On Tuesday, the major indices rebounded from Monday’s losses.
The S&P 500 has rallied from its 10-day line, right at the 4000 level, as it moves towards its 200-day line. While it did not break the intraday high on November 15, it was the best close for the index in more than two months.
The 50 day line is single starting to rise in the S&P 500.
The Russell 2000 is very close to 200 days. The S&P MidCap 400, which held its 200-day line last week, posted fresh gains.
The leading Dow Jones broke above the 34,000 level for the first time in three months, just below the August 16 high. The Nasdaq laggard found support at its 21-day line, just above its 50-day line, but did not recoup all of Monday’s losses.
All of these indices are running on handles, with the Dow sneaking up on top. Most stocks track the action of the major indices, so many stock handles are forming near buy points. A slightly longer pause, perhaps until the key economic reports late next week, would allow the moving averages to start to catch up.
What to do now
Until the S&P 500 decisively moves above its 200-day line, investors may not want to add much exposure at this point. With the Thanksgiving holiday muting trade and critical economic data from the Fed next week, the market’s rally could be range bound in the near term.
That could help stocks across a variety of sectors establish handles and cause the moving averages to gain ground. Investors should be building their watch lists. It’s definitely a time to look beyond traditional tech growth stocks, which are mostly lagging right now.
With many leaders trailing from the moving averages, such as Excelerate Energy or BTU stocks, it is even more important to look for early entries and act quickly.
Read The panorama daily to stay in sync with market direction and major stocks and sectors.
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