Dow Jones futures will open on Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rally attempt gained momentum, with the major averages running up sharply Friday and for the week.
UnitedHealth (UNH), Shockwave Medical (SWAV), Ulta Beauty (ULTA), Enphase Energy (ENPH), Sociedad Quimica y Minera (SQM), Quanta Services (PWR), Northrop Grumman (NOC) are stocks to watch. All have relative strength lines at or near highs.
Shockwave stock broke out on Friday, with Ulta and PWR stock arguably offering early entries. UnitedHealth, Northrop, SQM and ENPH stock aren’t far from buy points.
Also keep an eye on Google parent Alphabet (GOOGL) and EV giant Tesla (TSLA). Google stock and Tesla are nowhere close to old highs, but these megacaps are rallying above key levels after holding above their May lows this month.
NOC stock is on IBD Leaderboard, with PWR stock on the Leaderboard watchlist. GOOGL stock is on IBD Long-Term Leaders. UnitedHealth, Ulta Beauty, SQM and ENPH stock are on the IBD 50. UNH stock and Ulta are on the IBD Big Cap 20.
UnitedHealth was Thursday’s IBD Stock Of The Day. SQM was Tuesday’s Stock Of The Day.
Dow Jones Futures Today
Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.
Stock Market Rally
The stock market rally attempt delivered big weekly gains in a short week, the major indexes closing Friday at their best levels.
The Dow Jones Industrial Average leapt 5.4% in last week’s stock market trading. The S&P 500 index gained 6.5%. The Nasdaq composite surged 7.5%. The small-cap Russell 2000 jumped 6%.
The 10-year Treasury yield fell 11 basis points to 3.12%, rebounding from just above 3% at Thursday’s lows.
U.S. crude oil futures dipped 0.3% to $104.27 a barrel last week, rebounding 3.2% on Friday.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell 1.5% last week, with commodity-related names weighing on FFTY. The Innovator IBD Breakout Opportunities ETF (BOUT) rose 1.7%. The iShares Expanded Tech-Software Sector ETF (IGV) surged 10.3%. The VanEck Vectors Semiconductor ETF (SMH) popped 5.1%.
SPDR S&P Metals & Mining ETF (XME) fell 1% last week, even with a big bounce Friday. The Global X U.S. Infrastructure Development ETF (PAVE) gained 3.6%. U.S. Global Jets ETF (JETS) leapt 5%. SPDR S&P Homebuilders ETF (XHB) shot up 7.6%. The Energy Select SPDR ETF (XLE) slid 2.6% and the Financial Select SPDR ETF (XLF) climbed 4.6%. The Health Care Select Sector SPDR Fund (XLV) raced up 7.8%, with UNH stock a major holding.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) vaulted 18.25% last week and ARK Genomics ETF (ARKG) 18.1%, both moving above their 50-day line. Tesla stock remains a top holding across Ark Invest’s ETFs.
Stocks Near Buy Points
Shockwave stock soared 6.4% on Friday and 25% for the week to 197.69. That cleared a 194.41 cup-with-handle buy point, with Friday’s move coming on above-average volume for SWAV stock. Shockwave Medical has been profitable the past three quarters while revenue growth has been in the triple digits for the last five quarters.
UnitedHealth stock leapt 9.6% for the week to 495.64, but pulled back below its 50-day line on Friday. UNH stock has a double-bottom base with a 507.35 buy point, only slightly above Thursday’s intraday high. Several other health insurer stocks are setting up.
Ulta Beauty stock rose 3.7% on Friday and for the week to 410.70. On Friday, shares reclaimed their 50-day line. Arguably, that offered an aggressive entry. ULTA stock has an odd-looking cup-with-handle base with an official buy point of 429.58.
ENPH stock advanced 7.4% to 198.39 last week. That’s above a recent 193 buy point that is no longer valid, though investors could see an early entry here. Enphase stock is working on a 217.33 handle entry. While solar stocks have been strong in recent weeks, Enphase and its peers tend to have big daily swings.
SQM stock fell 1.1% for the week to 89.28, but bounced Friday to reclaim its 50-day line. The lithium giant, which also has significant fertilizer market exposure, round-tripped a 27% gain recently. But a strong move above the 50-day line, perhaps crossing the 21-day, would offer an aggressive entry. SQM earnings and revenue growth is exploding.
Quanta Services stock leapt 10.65% to 125.98, rebounding from the 200-day line and above the 50-day. That arguably offers an aggressive entry within a cup-with-handle base. The official buy point is 138.56…