Dow futures contracts will open on Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rally made modest gains last week, capping a strong year, especially for technology and growth stocks.
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Tesla (TSLA) And the New (NIO) It is set to report key sales numbers in the next few days, along with Xpeng (XPEV), Li Auto (In the) And the BYD Corporation (I will). Tesla and Nio shares were two of the biggest winners in 2020, with Xpeng, Li Auto and BYD also reporting three-digit gains.
After such a sudden and often strong rise in the stock market in 2020, what are the lessons learned from 2021? There are several of them, but investors should always remember this: the stock market will do what the stock market will do.
25 shares are in the Buy Now range
The next stocks are high-quality stocks that are flashing buying areas, either from traditional breakouts, early entries, or bullish bounces from key levels. So you have better layouts and basics than others. But they offer ideas for a wide range of stocks and sectors that are viable by 2021. Many of these sectors have many other stocks that are preparing for potential buying opportunities.
Chips: Taiwan Semiconductor (TSM), Homogeneous strength (MPWR), Micron technology (Mo) And the Advanced Micro Devices (AMD).
Investment banks: Jefferies (JEF) And the T. ru price (TROW).
Cyclic: Freeport McMuran (FCX) And the monastery (From).
Payments: visa (Fifth) And the Master Card is a credit card (MA).
Reducers: Five below (five), Ross Stores (feeling).
Medicinal products: Intuitive surgeon (ISRG), Idexx Labs (IDXX).
Inventory of electric vehicles: Nio stock And the world.
Internet: Google Origin the alphabet (GOOGL), Twitter (TWTR), JD.com (Dinar),
Chipotle Mexican Grill (CMG), Paul Company. (Pool), Cramping (CHGG), MSCI (MSCI), Epam Systems (EPAM) And the Logitech (LOGI).
Tesla’s stock is on IBD Leaderboard, Along with Taiwan Semiconductor, AMD and Chipotle. Chipotle, Five below, and Freeport McMoRan stocks are in operation SwingTrader. Idexx Labs, Epam Systems, and Pool Corp. MSCI and Mastercard are up and running Long-term leaders of IBDMPWR and Chegg stocks are on the Watchlist. AMD, Monolithic Power, Chegg, and Taiwan Semi and Pool stocks are at the IBD 50.
Dow Jones futures today
Dow Jones futures will open at 6 PM ET on Sunday, along with the S&P 500 and Nasdaq 100 futures.
Remember to work on overnight Dow Jones Futures And anywhere else it does not necessarily translate into actual circulation in the next normal cycle Stock market session.
Join IBD experts as they analyze actionable stocks up the stock market on IBD Live.
Coronavirus news
The number of coronavirus cases worldwide has reached 84.08 million. The death toll from Covid-19 has surpassed 1.83 million.
The number of coronavirus cases in the United States has reached 20.46 million, with the number of deaths exceeding 354,000.
The stock market rises
The stock market rally continued to advance last week, although some growth names suffered.
The Dow Jones Industrial Average rose 1.35% in the past week Stock market trading. The S&P 500 rose 1.4%. The Nasdaq Composite Index advanced 0.65%.
Over the year, the Dow Jones Index rose 7.2% and the S&P 500 rose 16.3%. The Nasdaq rose 43.6 percent, its best annual gain since 2009.
Meanwhile, IBD Leaderboard jumped 58.4% in 2020, while SwingTrader is up 86.4%.
Software stocks and several IPOs were big gainers of 2020, but many of them posted big losses last week. This is not entirely bad. Bullish sentiment at high levels, according to several psychological indicators. Reducing some of the functions of a stock market rally can be healthy.
between the The best ETFs, The Innovator IBD 50 ETF (fifty(It fell 1.3% last week, while the Innovator IBD Breakout Opportunities Fund)fitSlipped 1.5%. IShares Technology and Software Extended Fund (ETF)IGVDown 1.7%. (VanEck Vectors Semiconductor Foundation)SMHIt rose 1.65%.
Tesla delivery is due
Tesla’s fourth quarter deliveries are scheduled for next week. Some forecasters with a good track record expect Tesla’s deliveries to be anywhere between 182,000 and 183,000, driven by strong growth in China. A statistic of 181,000 or more meant that full-year Tesla deliveries hit 500,000.
Tesla records its quarterly deliveries and production numbers within three business days of the next quarter. It could mean any time between now and Wednesday, January 6th.
On January 1, Tesla said it would begin delivering the Chinese-made Model Y this month, setting a base price of 339,900 yuan ($ 52,074). The Y Cross will compete with the relatively new Nio EC6 as well as the upcoming model Volkswagen (VWAGYID.4. VW ID.4 was launched in Europe last month and will arrive in the US in March.
Tesla stock rallied 1.6% on Thursday, hitting a record high and closing up a whopping 743% in 2020. TSLA stock has extended well from any conceivable buying point.
China EV sales
Nio, Li Auto, Xpeng Motors and BYD Co are set to announce deliveries in December and production numbers in the coming days.
All four Chinese electric car manufacturers, along with Tesla, saw significant gains in November sales. One factor is Shanghai, which has a free license plate policy for new energy vehicles, including electric and hybrid vehicles and fuel cell vehicles. Many Chinese cities limit the number of license plates, providing the right to own a car, and it is very expensive. The NEV free license policy was due to expire in 2020, but on Wednesday Shanghai extended it until February.
China EV stock
Nio stock raced ahead of Tesla’s stock in 2020, rising by 1112%. XPEV shares, the initial public offering in late August, jumped 185% last year. Li Auto, the July initial public offering, is up 151% in 2020. BYD’s stock is up 432%.
Last week, Nio’s stock fell back to the 10-week streak, then rose to 6.5%. It’s now 9.2% above the 10-week streak, and still within range. During Thursday, Nio stock crossed a downward sloping trendline and short term resistance. Returning above these levels would provide early new inputs. Nio will soon have a new unification.
In addition to December sales numbers, the electric car maker will celebrate its annual Nio Day on January 9, when it will unveil new models, battery technology, and more.
BYD shares rose 2.8% Thursday to 26.43, part of a weekly gain of 7.8%. This pushed China’s large EV and battery maker above the 26.30 grip-like entry level in short grip. BYD shares are traded over the counter in the US but are listed in Hong Kong. So in the US, the volume is rather low and the stock tends to have small gaps, but the global liquidity is very large.
XPEV rose 2.3% last week, recovering from its sharp initial losses, to close near the top of its range. Xpeng found support at the 50-day line but still below the ten-week line. It’s the first test ever for any of those moving averages, but the XPEV stock has fallen hard and sharply to those levels. Aggressive investors looking to buy Xpeng stock rally may wait until it at least regains its 21-day moving average.
Li Auto fell 1.7% last week, although it closed somewhat higher in its range. Li stock hit resistance at the 50-day level, which is below the 10-week line. As with XPEV stock, investors looking to enter Li Auto stocks may wait on a bullish rebound from the 50 days / 10 weeks line until it crosses the 21 days line.
2020 stock market mobilization lessons for 2021
First and foremost, the big takeaway for 2020 is that the market will do what the market will do. No one could have predicted the news events of 2020 – the pandemic, shutdowns, and the economy in freefall – not to mention how would that lead to a strong rally in the stock market?
Don’t try to predict what the market will do in 2021 – or even next week. Listen to the market.
History indicates that the stock market is unlikely to repeat such large gains for 2020. But you never knew. If the major indices deliver only modest gains for the whole year, investors who play into bullish trends and skip corrections could see significant gains.
For now, the stock market rally still looks good. That may change quickly, but the major indicators and leading stocks are sending positive signals at the moment.
When the market enters a correction, move big or totally into cash. When the follow-up day confirms a fresh rally in the stock market, start early.
The stock market forecast for 2021 may be different from what you expect
Buy leaders
Entering into the leading stocks from the major sectors because they are quick buy signals is the way to outperform the broad market. The Nasdaq, which nearly doubled from its lows in March, shot off the S&P 500 and the Dow Jones for the whole year. Investors focusing on the real leaders could have had much greater returns.
Don’t assume stocks are the big winners
Don’t assume the big winners of 2020 will keep running – or that they are doomed to a major reversal.
There is likely to be some rotation, especially given the huge wins of the many winners and the shift from a pandemic environment to a post-pandemic environment. But some of the 2020 winners may still do well.
The 25 stocks in the aforementioned buying areas provide a sense of driving diversity.
Be ready for 2021
If you want to constantly beat the main indicators, you will need to prepare. Turn on the screens over the weekend, looking for the best stocks from the leading collections. Create watchlists and do some research on these names.
You want to pounce on the breakouts of the stock market rally, but you also want to be selective.
Don’t just focus on chips, software, or push stocks. Leadership can change, and it’s good to have a variety of Elite Shares.
Mining and mineral groups are among the highest ratings at the moment. Housing stocks, which are now declining, can run huge distances.
After purchasing your stock, retaining the winners is a challenge. Are you trying to hold big winnings or take profit at 10%, 20%. It can be based on your conviction on the stock and the market rally condition. Taking partial profits when stocks expand dramatically or start breaking short-term moving averages is at least an art like science.
The key is developing and following your sales rules.
Again, don’t anticipate the market. Listen to the market. Be prepared, decisive, and flexible.
Read The Big Picture Every day to keep up with the market trend, stocks and leading sectors.
Please follow Ed Carson on Twitter at IBD_ECarson Stock market updates and more.
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