Market Rally Action Is Dangerous; Watch Tesla, These EV Chip Stocks

The stock market rally showed mixed action last week.


Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. Tesla (TSLA) and several chip stocks are worth watching.

The Nasdaq hit a 2023 high last week, but ended with slim gains. The S&P 500 and Dow Jones fell for the week, while market breadth remained weak.

The stock market rally showed mixed action last week. Also, not many stocks have been offering buy signals, and some of those have quickly wobbled.

But a choppy market rally is dangerous for investors. It’s still a time to be mostly in cash.

Tesla stock is trying to bounce back, but faces key resistance as it builds the right side of a base.

EV-related chip plays On Semiconductor (ON), Axcelis Technologies (ACLS) and Aehr Test Systems (AEHR) are all trading near possible entries. Meanwhile, Advanced Micro Devices (AMD), Lam Research (LRCX) and Broadcom (AVGO) are chip giants near potential buy points.

Also pay attention to Sarepta Therapeutics (SRPT) on Monday. SRPT stock was halted throughout Friday’s session, as an FDA advisory panel discussed whether to recommend Sarepta’s gene therapy for patients with Duchenne muscular dystrophy. The panel narrowly voted 8-6 in favor of an accelerated approval. The FDA doesn’t have to follow the committee’s vote, but takes it into consideration. SRPT stock tumbled 8.2% for the week through Thursday as FDA briefing documents suggested the therapy might be rejected.

The video embedded in the article discussed the market rally’s mixed messages and analyzed ON stock, Trade Desk (TTD) and Kinsale Capital (KNSL).

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.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Stock Market Rally

The stock market rally continued to trade tightly, with mixed action that looked weaker…


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