Dow Jones futures were up slightly after hours, along with S&P 500 futures and Nasdaq futures. The stock market rally was relatively quiet on Tuesday, with the Nasdaq ending up with modest losses.
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Donald Trump’s Trump Media and Technology Group (DJT) broke out of a base on Tuesday, as the Truth Social parent began trading under the DJT ticker following the completion of the SPAC merger. But Trump stock closed well below a buy point, at an intraday high.
Tesla ( TSLA ) had a reasonable gain, but faced key resistance.
Google Parents the alphabet (GOOGL) and Service Now Flirted intraday with a (now) buy signal. Crowd strike (CRWD), CyberArk Software (CYBR) and Cloudflare (NET) configuration. All of these names are related to AI stocks, or AI.
On the downside, Nvidia ( NVDA ) fell marginally as AI chip stocks took a breather, with Arm Holdings (ARM) down sharply.
Early Wednesday, Carnival (CCL) will report earnings operating on a new basis. CCL stock fell 0.5 percent to 17.03. Cruise Leader Royal Caribbean (RCL) is holding in a buy zone. RCL rose 0.4 percent to 136.87.
Nvidia and Arm stocks are on the IBD leaderboard, CyberArk is on the stock leaderboard watch list. CrowdStrike, Royal Caribbean and Cloudflare stocks are on the IBD 50. ServiceNow stock is on the IBD Big Cap 20. ServiceNow was Tuesday’s IBD Stock of the Day.
The video included in this article examines Trump Media stocks DJT, ServiceNow and Royal Caribbean.
Dow Jones Futures Today
Dow Jones futures rose 0.15 percent versus fair value, with Merck (MRK) Late jump after FDA approves a drug for pulmonary arterial hypertension. Dow S&P 500 futures climbed 0.1 percent and Nasdaq 100 futures rose 0.1 percent.
Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
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Stock market rally
The stock market rally was slightly positive until the close, with major indexes closing with thin to modest losses.
The Dow Jones Industrial Average fell about 0.1% in Tuesday’s stock market trading and the S&P 500 index fell 0.3%, down for a third straight session. The Nasdaq Composite fell 0.4 percent after Monday’s dip. The small-cap Russell 2000 fell 0.2 percent.
With a few exceptions like Trump Media’s DJT stock, not many stocks were taking off. But many stocks showed constructive action.
Meanwhile, the S&P 500 and Nasdaq haven’t been extended above their 50-day lines, so the leading stocks have little room to run.
U.S. crude fell 0.4 percent to $81.62 a barrel.
The yield on the 10-year Treasury rose two basis points to 4.33 percent.
ETFs
Among developing ETFs, iShares’ Expanded Tech-Software Sector ETF ( IGV ) rose 0.2 percent. ServiceNow is a top holding, with CrowdStrike stock also in IGV. The VanEck Vectors Semiconductor ETF ( SMH ) fell 0.9%, with Nvidia stock dominating.
Reflecting the more speculative storied stocks, the ARK Innovation ETF ( ARKK ) fell 0.4% and the ARK Genomics ETF ( ARKG ) fell 0.9%. Tesla stock is a key holding in ArchInvest’s ETFs.
The SPDR S&P Metals & Mining ETF ( XME ) retreated 0.8%. The SPDR S&P Homebuilders ETF ( XHB ) shed 0.2%. The Energy Select SPDR ETF ( XLE ) gained 0.8% and the Healthcare Select Sector SPDR Fund ( XLV ) gained 0.4%.
The Industrial Select Sector SPDR Fund ( XLI ) fell 0.4%. The Financial Select SPDR ETF ( XLF ) rose 0.3 percent.
Time the Market with IBD’s ETF Market Strategy
Donald Trump’s stock plummeted.
Trump Media stock rose to 79.38 intraday. But DJT stock closed up 16% at 57.99, below the 58.72 consolidation buy point.
Trump Media, the parent of Trump’s social network Truth Social, began trading on the Nasdaq on Tuesday. Digital World Acquisition finally merged with Trump Media and Technology Group on Monday. Before becoming a DJT stock, DWAC rose 35%.
There is definitely a meme-stock quality to the Trump media, with a heavy biased edge. Hence, high volatility is likely to continue for some time.
Trump Media stocks rose strongly overnight in active trading.
Stock close to buy points
Google stock rose 0.4% to 150.67, briefly topping a handle buy point intraday with a 152.15 cup. Shares rose on a report last week. apple (AAPL) is considering using Google’s Gemini AI tool in the iPhone. The relative strength line is rebounding, but still far from the peaks of late January and late October. This reflects the underperformance of GOOGL stock versus the S&P 500 index.
ServiceNow stock rose 0.5% to 778.57. The software giant has a flat base buy point of 815.32. The stock’s initial entry is 807.77. Aggressive traders can use last week’s high of 785.88 to initiate positions, which is still close to the 50-day line.
CrowdStrike stock has had some wild sessions along the way, but has generally traded strongly since mid-February, with support around the 21-day line, holding the 10-week line. Investors can use 328.64 as a draw-the-line buy point. CRWD stock climbed 1.6% to 330.01 on Tuesday.
CyberArk stock fell 0.7 percent to 263.49. Shares have a 283 consolidation buy point, typically finding support at the 21-day line similar to fellow cybersecurity leader CrowdStrike. Investors can use last week’s high of 277.97 as an initial entry. It could become an official handle buying point in a couple of days.
Cloudflare stock climbed 3.1% to 99.07, bouncing off the 21-day and 10-week lines, despite light volume. The security and traffic optimization software leader is to have a base with 116 official buy points later this week. But investors can use the March 21 high of 100.90 as an initial entry.
Tesla stock
Tesla stock rose 2.9 percent to 177.67, retracing its 21-day moving average. Shares hit 184.25 intraday, hitting resistance at the 10-week line. TSLA stock hit resistance at the 10-week line at the start of the month, with that rejection providing a brief opportunity.
On Tuesday, weekly China registration data pointed to weaker Tesla shipments in the key market in the first quarter. Demand in the US and Europe also appears sluggish. Tesla will likely release first-quarter global deliveries on April 2, with indications that they will come in well below consensus forecasts.
Tesla is now offering a free month of its fully self-driving software for new purchases. CEO Elon Musk is also requiring drivers to take a test FSD drive before taking delivery of a new Tesla or after taking their Tesla in for service.
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Nvidia stock, AI chips
Nvidia stock fell 2.6% to 925.61, snapping a six-session winning streak, but still near record highs. Broadcom ( AVGO ) fell 1.5 percent. However, ARM stock fell 7.5% to just below its 21-day line after flirting with an early entry near the open. The high-flying 2023 chip IPO should hit a new base later this week.
What should be done now?
The stock market rally is working well.
There aren’t a lot of stock buy signals right now, but many leaders are setting up. Investors can try to add gradually, but this is not the time to increase exposure dramatically.
This is definitely the time to explore these setups, so you can target the most attractive names when they make their moves. So keep your watch list ready.
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