Market Rally Key Levels After Dow Jones Futures Rise, Salesforce Jumps; Do not fall into this trap

Dow Jones futures rose moderately early Wednesday, with S&P 500 futures and Nasdaq futures. Salesforce.com (CRM) Major revenue after termination. Neo and other Chinese EV makers announced that sales had increased again before opening in May.




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The stock market rally closed on Tuesday, after initially retreating, and the Nasdaq held a key position after last week’s big improvement.

The market is on a steady rise and investors are keeping the green light to add some exposure. But do not fall into the trap of buying extended hot stocks Schlumberger (SLP) And the role of Albemarle.

Key revenue

Salesforce and HP Inc. (HPQ) Informed after completion.

Seller revenue Fell but won the shots. The guidance was light from the middle. But CRM stock rose 9% in pre-market trading. The stock has recently hit a two-year low, but the business software company is still an industry bellwether.

HP topped the revenue outlook when the printer-and-PC raised the lower end of its full-year EPS target, although the overall outlook was roughly in order. HP shares rose in extended trading. Shares rose 0.2% to 38.84 in Tuesday’s regular session, the fourth straight gain since recovering from the 200-day line and the 50-day line. HP shares have a consolidated buy point of 41.57, but may have an early entry of 39.81.

China EV sales

Meanwhile, China EV makers Neo (NIO), Xpeng (XPEV) And Li Auto (LI) May distributions were announced Before the market opened on Wednesday, with a significant increase since April, but below pre-lock levels.

Neo Stock and EV startup Pierce rose slightly early Wednesday. All three were released on Tuesday, easing Govt controls, improving economic data and undertaking various new EV incentives.

China EV and battery giant BYD (I will do) May release May sales on Friday, despite Govt impacts with record sales in April. BYD stock is still in the initial purchase point range.

Tesla (DSLA) China sales will be released in two more weeks. TSLA stock has been recovering somewhat since 2022 last weekend.

The video embedded in this article analyzes Tuesday’s market activity and Schlumberger shares, Albemerley (ALB) And அ.தி.மு.க (அ.தி.மு.க)

ALB stock is active IBD Leaderboard. ADMK has a role to play Swing Trader.

Dow Jones Futures Today

Dow Jones Futures rose a reasonable value against 0.5%. CRM stock is a Dow Jones component. The S&P 500 futures were up 0.3% and the Nasdaq 100 futures were up 0.4%.

10 year treasury revenue increased by 3 basis points to 2.87%.

U.S. crude oil futures are up more than 1%.

China’s private Caixin index rose 2.1 points to 48.1 in May. It follows a much stronger official factory size than expected. Both were below 50, but the Govt indicated a slow decline as restrictions were relaxed. Shanghai has mostly completed locks since June 1st.

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Remember that overnight action Dove futures Elsewhere there is no need to translate it into the next regular real trade stock market Session.


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Stock market rally on Tuesday

The stock market rally gave up some land on Tuesday, but intraday closed at a minimum.

The Dow Jones Industrial Average fell 0.7% on Tuesday Stock market trading. The S&P 500 index is down 0.6%. The Nasdaq compound retreated 0.4%. Small-cap Russell 2000 slipped 1.3%.

U.S. crude fell 0.4% to $ 114.67 a barrel, briefly rising above $ 119. The EU’s move to partially curb Russian crude imports on Tuesday morning saw China loosen its locks and raise prices. But OPEC + is considering whether to exclude Russia from production limits, which has seen a drop in production amid import and sanctions. The Wall Street Journal. Saudi Arabia and the United Arab Emirates, with some surplus capacity, will pave the way for significant pumping.

The future of natural gas fell 6.7%.

10-year Treasury revenue rose 10 basis points to 2.84%, recovering from its 50-day close. China eased Govt restrictions and the federal government’s support for Christopher Waller’s further half-point rate hikes helped boost treasury yields, which had been low for several weeks.

ETFs

In the middle The best ETFsInnovator IBD 50 ETF (FFTY) Gave 1.75%, while Innovator IBD Breakout Opportunities ETF (Boat) Fell 1.2%. iShares Extended Technology-Software Industry ETF (VAT) 2% was given. CRM is a major IGV holding. WANEX Vectors Semiconductor EDF (SMHDecreased by 0.4%.

SPDR S&P Metals & Mining ETF (XME) 3.5% decline and Global X US Infrastructure Development ETF (Pavement) 1.4% US Global Jets ETF (JETS) 0.6% down. SPDR S&P Homebuilders ETF (XHBDecreased by 1.3%. Energy Selection SPDR ETF (XLE) Gave up 1.5%, with SLB stock having a significant reserve. Financial Examination SPDR ETF (XLFDecreased by 0.3%. Health Care Selected Sector SPDR Funding (XLVDecreased by 1.3%.

Represents more speculative story stocks, ARK Innovation ETF (ARKK) Fell 2.9% and ARK Genomics ETF (ARKG) 4.1% Tesla Stock Arch Invest Arc also holds some BYD shares.

Schlumberger role

Schlumberger shares rose briefly to 48.67 on Tuesday, a three-year high and extending from the official 46.37 consolidated buy point that was erased last Thursday. At the time, SLB shares were up 15% above its 50-day tax. But as crude oil prices eroded big morning gains, SLB shares fell, lowering the official buying point. Investors who bought the oil service company from early buying points, including 44.61, are still somewhat positive, though they may want to make a partial gain on Friday or Tuesday morning. But SLB stocks, especially when the stock is extended from the 50-day line, show risks of buying breakouts.

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Albemarle stock

Albemarle shares fell 3.9% to 260.42 on Tuesday after huge gains for the previous week and May. ALB shares clearly extended from that level on Friday after illuminating an early entry to 248 on Thursday. Maybe the lithium giant will make a handle.


Five best Chinese stocks to watch now


China EV sales

EV start-up companies Neo, Xpeng and Li Auto have been showing improved production and sales since April, with Kovid Lockdowns hitting the release and distribution chains. A full recovery is likely by the end of June, as the Shanghai Govt has greatly relaxed restrictions on June 1st.

Li Auto delivered 11,496 Li One SUVs in May, up 176% from a year earlier in April. The Li One is a hybrid that is a small gas engine with a range extender.

XPeng delivered 10,125 vehicles, up 12.5% ​​from April and 78% from May 2021.

Neo delivered 7,024 vehicles in May, up 38% from April and up almost 5% from a year earlier.

Li Auto shares rose 2% before opening on Wednesday. Shares were up 3.25% at 25.07 on Tuesday, after recovering from a 50-day close on Friday. The LI stock is still down slightly short of its 200-day high.

Xpeng stock rose more than 1% in pre-market trading. On Tuesday, XPEV stock rose 4.4% to 23.50, below its 50-day low.

Neo stock advanced about 2% early Wednesday, indicating a possible test of its long flexible 50-day line. Shares were up about 5% at 17.39 on Tuesday.

BYD stood out with record sales in April, thanks to its internal battery and chip production. The automaker will release the May sale on Friday.

BYD stock rose 2.8% to 35.80 on Tuesday, up from 2022. Last week, the stock removed an early entry at 34.60 from the unfinished handle. BYDDF stock has a buying point of 41.34 from a deep cup base.

Tesla Shanghai production is approaching normal, but the May release was still lower than normal. Tesla China’s sales data will not be available for another two weeks as part of industry trade data. Tesla shares fell 0.2% to 758.26 on Tuesday. It hit a 10-month low on May 24, but rebounded to a 14% weekly profit.

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China EV Giant Flashes Accepts Signal on Tesla Model 3


Market Rally Analysis

The stock market rally did not improve on Tuesday, but did not lose much ground.

Key indices fell on Tuesday morning, not a big surprise after last week’s strong gains, especially as the Treasury’s yields have risen sharply to start the week. But the Nasdaq saw support at its 21-day moving average, while the Dow Jones and S&P 500 did not go that far.

However, as it was a delivery day, volume increased in the NYSE and Nasdaq.

The stock market is on a steady rise due to the Nasdaq The following day Thursday. The Nasdaq followed another large price gain on Friday. The Dow Jones and S&P 500 have no follow-up days yet, but are completing their 50-day moving average.

The 50-day queue could be a major test for the stock market rally. This may be the place where key codes return to a lower level. A decisive move above the 50-day line would suggest that it could be higher than the bear-market rally. But the 200-day line and the March high will still have plenty of overhead resistance with key positions.

While China EV and Internet stocks generally recovered, growth stocks, especially speculative growth, were tough on Tuesday. Pharmaceutical manufacturers and some major biotechnologies have backed down. Mining and metal stocks, some of which show signs of life, hard day.


Market time with IBD’s ETF Marketing Strategy


What to do now

Market activity on Tuesday was normal. With some stocks being bought on Tuesday, there is not a good reason to increase the slim-to-moderate exposure.

Buying extended stocks is never a good idea, especially in a weak, volatile market. Oil stocks moved higher on Tuesday morning. But many were extended from buying points or from their 50-day taxes like Schlumberger.

While investors may have to look for opportunities, it is still time to be cautious. Keep a level head and work on your watchlists.

According to The big picture Every day the direction of the market and the leading stocks and sectors must be consistent.

Follow Ed Carson on Twitter @IBD_ECarson For stock market updates and more.

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