Falling Dow Jones Futures: Troubled Market; Apple, these 5 EV games are close to buying points

Dow Jones futures fell slightly early Wednesday morning, along with S&P 500 and Nasdaq futures. The stock market rally closed slightly lower on Tuesday after steep retreats in the previous two sessions. Investors are cautious about making big bets ahead of Fed Chief Jerome Powell’s big Jackson Hole speech on Friday.




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Apple (AAPL) sculpts a handle, lowering its potential point of purchase. Apple stock technically already has a buy point on a weekly chart.

You’re here (TSLA) rose towards an aggressive buy point on Tuesday. Outside of Tesla’s stock, most EV makers are struggling. However, there are several EV-related games that are close to buy or playable points now. They include lithium producers Albemarle (ALB) and Livent (LTHM). Also play tokens On semiconductor (ON), Axcelis Technologies (ACLS) and Monolithic power systems (MPWR).

This comes ahead of the chip giant’s Wednesday night earnings Nvidia (NVDA), with his comments on data centers also important to Monolithic Power.

Tuesday night, TurboTax generator Intuitive (INTU) advanced on strong earnings, while La-Z-Boy (LZB) jumped on its results. Luxury home builder Toll Bros. (TOL) and youth clothing retailer Urban outfitters (URBAN) obtained mixed results, while Advanced auto parts (AAP) reversed on disappointing EPS and sales. Nordström (JWN) fell by slashing forecasts amid a glut of inventory.

ALB stock is enabled IBD classification. Stock MPWR is enabled IBD Long Term Leaders. Stock Tesla, Monolithic Power, Axcelis and Onsemi are on the INN 50. Albemarle, Monolithic and ON stocks are on the IBD Big Cap 20. Monolithic power was on Tuesday IBD stock of the day. Livent was Monday’s headline.

Dow Jones Futures Today

Dow Jones futures fell 0.1% from fair value. S&P 500 futures slipped 0.1%. Nasdaq 100 futures fell 0.15%.

The 10-year Treasury yield fell 2 basis points to 3.03%.

Remember that overnight action in Futures contracts on Dow and elsewhere does not necessarily translate into actual trading over the next stock Exchange session.


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Stock market rally

The stock market rally eased slightly on Tuesday, continuing a pullback but with the major indexes all close to their 21-day moving averages.

The Dow Jones Industrial Average fell 0.5% on Tuesday stock market trading. The S&P 500 lost 0.2%, with TWTR stock by far the worst performer. The Nasdaq composite, up for most of Tuesday’s session, closed less than 1 point. The small cap Russell 2000 edged up 0.2%.

U.S. crude oil prices rose 3.4% to $93.74 a barrel, continuing to rebound from Monday’s lows after Saudi Arabia suggested OPEC could cut output.

Natural gas futures fell 5%, reversing from 14-year highs, even as Freeport LNG pushed back the restart of its Texas facility from early October to early November.

The 10-year Treasury yield rose 2 basis points to 3.05%. The 10-year yield hit 3.08% intraday, then briefly fell 3% following several weak economic reports.

Powell’s political talk will likely swing Treasury yields and the odds of a rate hike. Markets have fully priced at least 50 basis points for Sept. 21, but are split on whether policymakers will opt for a third consecutive Fed rate hike of 75 basis points.

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From best ETFsthe Innovator IBD 50 ETF (FFTY) increased by 1.6%. The iShares Expanded Tech-Software Sector ETF (VAT) fell 0.2%, with CRM stock a major component of the IGV. The VanEck Vectors Semiconductor ETF (SMH) climbed 0.65%. Nvidia stock is a major holding company of SMH.

SPDR S&P Metals & Mining ETF (XME) gained 2.45%. The SPDR Energy Select ETF (XLE) gained 3.6% and the Financial Select SPDR ETF (45) fell 0.4%. SPDR Healthcare Sector Fund (XLV) fell 1.4%.

Reflecting more speculative history stocks, ARK Innovation ETF (ARKK) fell 0.55% and ARK Genomics ETF (ARKG) increased by 1.8%. Tesla stock is a major holding in Ark Invest’s ETFs.


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Apple broth

Apple stock fell 0.2% to 167.23, trading just above its 21-day moving average. On August 17, AAPL stock cleared a descending trendline, but then pulled back on Friday. Now tech giant Dow Jones is working on a handful. Apple stock needs one more day on a daily chart to have good management with a buy point of 176.25. On a weekly chart, AAPL stock already has this handle.

The relative force line for Apple, the action is at an all-time high, a bullish sign.

Stocks of electric vehicles close to points of purchase

Lithium games Albemarle and Livent reported strong earnings and guidance earlier this month.

Albermarle’s stock rose 1.9% to 281.03, after reversing higher on Monday. The ALB stock is extended from a buy point of 250.25 from a handful into a huge handful. However, the shares are in the range of an alternative entry of 273.78, just above the top of the 31% deep handle. Investors could use this as a chance to buy ALB shares or add a few shares.

LTHM stock jumped 5.1% to 30.33. Livent stock has a 31.63 cup with handle buy point, but just downtrend in the handle. This would offer early entry, although low volume is an issue.

On Semiconductor, Axcelis Technologies and Monolithic Power, chips play with EV exposure, all of which delivered strong results in early August.

ON stock rose 3.6% to 71.25 on Tuesday. It’s back above a buy point of 69.36, although the +10 cent consolidation top of 71.35 is also a legitimate entry.

ACLS stock climbed 2.2% to 72.22, working towards a buy point of 79.93 from a deep base with handle. The Axcelis handle was volatile, but the chipmaker found support at the 21-day line. Axcelis stock could have an early entry by breaking the downtrend of the handle.

MPWR stock rose 1.2% to 497.51, around its 21-day line. Monolithic Power’s stock has a buy point of 541.49 cups with handle, according to MarketSmith Analysis. Stocks fell on Friday and Monday, undercutting the 21-day line, giving a little more jolt after a strong advance.

Monolithic Power is present in a number of markets, including data centers, industrial applications and electric vehicles.

Tesla Stock

Tesla stock rose 2.3% to 889.36, bouncing off the 21-day moving average, slightly below the 200-day line. TSLA stock could have an aggressive entry if it hits near-term highs, emphasizing aggressiveness.

Tesla stock will split 3 for 1 after Wednesday’s session.


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Market rally analysis

The stock market rally was mixed on Tuesday, with all major indices hitting resistance at the 21-day moving average. The Nasdaq lost a fraction after falling 2% on Friday and 2.55% on Monday. The Dow Jones, which closed Monday just below its 21-day mark, lost a bit more ground on Tuesday.

Nvidia and Salesforce.com (RCMP) earnings will be the focus on Wednesday night. But the market’s rally could be limited until Fed Chief Powell’s big speech on Friday morning. Volume was particularly light this week.

Stocks from electric vehicle suppliers such as Albemarle and Axcelis look attractive.

Energy stocks are in the lead, but many have already passed buy points. Energy prices are subject to large daily or even intraday swings, with Tuesday’s downward reversal in natgas gas futures a clear example.

Some iron and steel areas are set up as well as stocks of fertilizers and agriculture.

Biotechs and drug manufacturers such as Vertex Pharmaceuticals (VRTX) and Eli Lily (THERE IS) had a rough session, but are not broken yet.


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What to do now

The market rally is pulling back in an uptrend within a bear market. In the very short term, investors should be cautious about increasing exposure, especially with Fed Chief Powell looming.

More and more stocks are forming bullish setups, so investors should run screens and update watchlists.

Lily The big picture every day to stay in tune with market direction and key stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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