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Monday, March 4, 2024

Rally Looks Strong Into 2024; What To Do Now

Rally Looks Strong Into 2024; What To Do Now

Dow Jones futures will open Monday evening, along with S&P 500 and Nasdaq futures, after the New Year’s holiday weekend. Tesla deliveries are expected before Tuesday’s open, as well as figures for the main competitors of electric vehicles.


The stock market is in good shape to start 2024 after the Nasdaq’s best performance in 20 years. A strong market rally has been in effect since late October, with major indexes on a nine-week winning streak. The S&P 500 is just below all-time highs.

There could be some oscillations in early January, with the return of volumes and some tax sales. Investors may want to see how this develops. But they should look for new buying opportunities and review past transactions.

Nvidia (NVDA), Microsoft (MSFT), Free market (MELI), Securities in Celsius securities (CELH) And Elie Lilly (THERE IS) all trade nearby buy points or early entries.

Electric vehicle deliveries

It’s January. 1, Li Auto (LI), Nio (NIO) And XPeng (XPEV) will report deliveries for December, the fourth quarter and the full year. Li Auto could reach 50,000 deliveries for December.

Chinese electric vehicle and battery giant BYD (I WILL) will probably release its sales on January 1st or 2nd. You’re here (TSLA) will release its global production and delivery figures in early January, probably on January 2. Tesla has a strong chance of hitting its full-year delivery forecast of 1.8 million electric vehicles, but BYD is expected to take the lead in fully electric vehicle sales for the year. fourth trimester.

American electric vehicle startup Rivien (RIVN) will likely release its quarterly production and delivery data on Tuesday. The maker of electric vehicle pickups, SUVs and delivery vans reported such statistics on the first market day after the end of the quarter.

Tesla is close to a buy point, while RIVN stock arguably has a handle. Li Auto stock is around aggressive entries. BYD, XPeng and Nio stocks need some repair work.

Tesla, Microsoft and Nvidia stocks are on the march MII classification. MSFT stock is on the Long-term leaders in IBD list. Nvidia, Celsius, MercadoLibre and Li Auto shares are on the market MII 50. The MELI share is on the stock market IBD large cap 20. Nvidia was Friday’s IBD Stock of the Day.

The video embedded in this article discussed the market rally, looked ahead to the new year, and analyzed Nvidia, MercadoLibre, and CELH stocks.

Dow Jones Futures Today

Dow Jones futures open Monday at 6 p.m. ET, along with S&P 500 and Nasdaq 100 futures.

US stock markets will be closed on Monday for New Year’s Day.

Remember that overnight action Dow Jones Futures and elsewhere does not necessarily translate into real exchanges during the next regular class sotck exchange session.

Join IBD experts as they analyze top stocks and the market on IBD Live

Stock market rally

The stock market rally came to a relatively quiet end after a strong year.

The Dow Jones Industrial Average rose 0.8% last week. stock market trading. The S&P 500 index rose 0.3%. The Nasdaq Composite Index edged up 0.1%. The small-cap Russell 2000 index fell 0.3%.

Over the year, the Dow Jones rose 13.7% and the S&P 500 rose 24.2%. The Nasdaq jumped 43.4%, its best performance since 2003.

Market breadth has improved significantly over the past couple of months. Mega-cap chips, software, and technology are still heavily represented among the top stocks, but industrials, construction, financial, travel, transportation, and some medical stocks are also present.

Sentiment indicators show a high bullish trend. The Nasdaq is up 6.9% above its 50-day line, down from a few days ago. But it wouldn’t take much to see the composite look expand again.

The 10-year Treasury yield fell 5 basis points to 3.86% for the week, after falling to a five-month low on Wednesday. Over the year, the yield increased by 3 basis points, but fell by 5% at the end of October.

U.S. crude oil futures fell 2.6% to $71.65 a barrel last week, down 10.7% for the year.

Stock Market Forecast 2024: A Soft Landing May Not Bring the Gains You Expect


Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (VAT) fell 0.45% last week, with Microsoft stock a key performer. The VanEck Vectors Semiconductor ETF (SMH) is up 0.9%. Nvidia stock is easily SMH’s #1 holding.

Reflecting more speculative stocks, ARK Innovation ETF (ARKK) fell 1.2% last week and ARK Genomics ETF (ARKG) closed apartment. TSLA stock remains a major component of Ark Invest’s ETFs.

SPDR S&P Metals & Mining ETF (XME) fell 1.55% last week. The Global X US Infrastructure Development ETF (PAVE) fell 0.1%. US Global Jets ETF (JETS) fell by 1.6%. SPDR S&P Homebuilders ETF (XHB) increased slightly by less than 0.1%. The Energy Select SPDR ETF (XLE) fell by 1.3%.

The SPDR Fund for the Selected Health Care Sector (XLIV) rose 1%, with LLY stock a major holding. The Select Industrial Sector SPDR Fund (XLII) increased by 0.8%.

The Financial Select SPDR ETF (45) turned to 0.7%.

These megacaps have had a huge year and are in first position heading into 2024

Stocks Near Buy Points

Nvidia shares rose 1.4% to 495.22 last week. The AI ​​chip leader is near a 505.48 buy point from a flat base which was formed mainly in the purchase area of ​​a double bottom base. NVDA stock dominated the S&P 500 in 2023, as its value more than tripled to more than $1.2 trillion. But with soaring earnings and a forward P/E ratio of just 26, Nvidia is arguably cheap.

Microsoft stock edged up 0.4% to 376.04, extending a long streak of tight weekly closes in the buy zone of a cup base. It has now formed a flat base with a buy point of 384.30, according to MarketSmith Analysis. Profit and sales growth have accelerated over the past three quarters.

MELI stock has been consolidating for several weeks. Like a number of top stocks that have seen strong performances, it has recently found support around its 21-day line. Shares fell 1.1% to 1,571.54 last week. Technically, MercadoLibre stock has a three tight weeks pattern with a buy point of 1,653.42. But investors could benefit from a significant move from the 21 days, perhaps around 1,600, as an entry point. MELI stock is on track to have a flat base in another week. This would allow the rapidly rising 50-day line to close the gap even further. MercadoLibre’s profits are in the triple digits, with revenue growth reaching 40% in the third quarter.

CELH stock jumped nearly 9% last week to 54.52, bouncing above the 50-day line. The energy drink giant has a consolidation buy point of 68.95, with 62.99 as an early entry. Investors could benefit from a move above a trendline, using Thursday’s high of 56.63 as a specific aggressive buying point. CELH stock has seen a trend of rebounding from the 50-day line to consolidation highs. After Celsius stock declined in recent months as the broader market rebounded, its line of relative force is behind, but after a big race.

Celsius earnings and sales are hot.

Eli Lilly shares rose 2.2% to 582.92 for the week, hitting resistance at the 50-day line but just resuming the 10-week line. LLY stock has a flat base buy point of 629.97. But investors could use a decisive move above the 50-day line, which would also break a trendline, as an early entry. The 600 level has also been a key area for the weight loss drug giant. As with Celsius, Lilly stock’s RS line has weakened in recent months following a strong uptrend.

Revenue growth has solidly accelerated over the past two quarters, with Lilly’s profits expected to peak in 2024.

What to do now

After a good year, the stock market is entering 2024 on solid footing, even if stocks sometimes stumble in January. Leaders such as Nvidia, Microsoft, Tesla and MercadoLibre are creating new purchasing opportunities.

So you’ll want to run screens and create your watchlists, looking through these charts.

It is also a good idea to study your professions 2023. What were your best and worst trades? What big winners did you miss or were rattled early on? Try to understand how you can attract and retain more top performers while minimizing losers and losses. This might mean following your rules better and doing your homework. It could also mean you need to change your investing rules or style.

Don’t try to match – or diminish – last year’s performance. Focus on making the best decisions at the time.

Read The big picture every day to stay in tune with the direction of the market and the main values ​​and sectors.

Please follow Ed Carson on X/Twitter at @IBD_ECarsonDiscussions about @edcarson1971 and Bluesky at @edcarson.bsky.social for stock market updates and more.


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