The stock market paused its rise over a holiday-shortened week. Despite Fed members indicating that big rate hikes will be conducted over many more sessions, the major indexes only suffered a small drop, remaining near crucial levels. Even so, it’s difficult to say if the most recent market action was positive or downward. Even if their risk is minor, investors should be prepared to withdraw.

The annual Worldwide Developers Conference will be held by Apple in the next few days. Apple (AAPL) is expected to unveil its newest operating system features at an event. Apple’s WWDC is expected to introduce an NFL streaming package, according to rumors. Even yet, Apple’s stock dropped sharply on Friday, ending the week down.

As Elon Musk apparently intends to reduce 10% of paid employment due to a “very awful feeling” about the economy, Tesla shares dropped on Friday and for the week.

There is a lesson to be learned from Tesla’s (NASDAQ: TSLA) dramatic rise and fall from the depths of the market.

NOC, DLTR, FLNG, ALB, ZIM Integrated Resources (ZIM), and Albemarle (ALB) are five companies nearing purchase marks. They all have high or near high relative strength lines, which is a positive indicator. 

Albemarle and NOC stock are on the IBD Leaderboard. The IBD 50 includes ZIM shares. This week’s market rise was highlighted in a video attached to this post, which evaluated Northrop, DLTR stock, and ALB stock, respectively.

It’s important to keep in mind that overnight trade in Dow futures and other indices doesn’t always transfer into real stock market activity in the next regular session.

The Stock Market is on the upswing right now.

Even if the stock market’s weekly surge slowed down a little, the major indexes still saw some big daily moves.

The Dow Jones Industrial Average fell more than 1% in last week’s stock market action. This index has fallen by 1.2% since the beginning of the year One percent of the Nasdaq Composite’s value was lost. In the small-cap sector, the Russell 2000 index dropped 0.2 percent.

Two of the most well followed ETFs in the biotech sector, Ark Innovation ETF and Genomics ETF, had significant drops in recent weeks. As of this writing, Ark Invest’s ETFs had the highest Tesla stock holdings.

Apple’s Worldwide Developers Conference

Apple is holding its annual Worldwide Developers Conference (WWDC) in San Francisco from June 6-10, where it will unveil new features for its iOS, iPadOS, macOS, watchOS, and tvOS operating systems. The NFL Sunday Ticket package, for example, has been said to be on the table for Apple to announce a deal with. On March 8, Apple TV+ announced a partnership to stream MLB games. If you want to attract and retain streaming customers, you’ll have to spend a lot of money on sports programming.

To put things in perspective, the weekly decline in Apple stock was 2.85 percent falling 145.38, which included Friday’s 3.9 percent loss to below the 21-day line. AAPL stock is considerably below the 50-day and 200-day moving averages, making it difficult to find a good entry opportunity.

Sell-off of Tesla dubbed “Super Bad”

Last week, Tesla’s stock fell 7.4% to 703.55 before plummeting 9.2% on Friday to go below its 21-day moving average. It has been claimed that Tesla CEO Elon Musk wants to slash 10% of the company’s paid employees because he has a “very awful feeling” about the state of the economy. Reuters reported on Friday that the remarks were included in an email sent to Tesla executives on Thursday.

Comments made in an email by Tesla CEO Elon Musk have sparked debate. Job losses would indicate a decrease in demand. Even still, the present-day Tesla demand is substantial, particularly given the limited manufacturing capacity of the automobile industry. Two additional facilities have been added to the EV company, and the company expects 50% growth in the next years.

Even still, Musk has said he expects the number of hourly employees to rise.

There have been 758 instances of “phantom braking” in select 2021 and 2022 Model 3 and Y cars, according to the National Highway Traffic Safety Administration, which is investigating the issue. On May 4, the NHTSA sent a letter to Tesla requesting information that was due by June 20.

The National Highway Traffic Safety Administration (NHTSA) plans to share automated-driving collision statistics this month, according to the Wall Street Journal. Many Tesla accidents employing Autopilot are now under investigation by the NHTSA.

The Stocks That Are About to Hit Their Best Buy Points

During Friday’s session, Northrop stock rose 3.35 percent to 478.37, barely over a 477.36 cup-and-handle buy threshold. By the time of Thursday’s test, the NOC stock had established an intra-handle inside a larger handle. Only 4.8 percent of Northrop’s share price has risen beyond its 50-day moving average.

Despite a 3.1 percent drop, Dollar Tree’s stock price remained above its 50-day moving average. In the wake of a big drop and subsequent rebound, shares have stabilized. On the heels of Walmart and Target’s disappointing results and forecasts, Dollar Tree’s shares rallied a week later. 

An early entrance was made possible by FLNG’s 7.6% gain to 29.74 last week, a bullish recovery from the 50-day line. According to MarketSmith research, the official purchase point for consolidation is 32.88. To give the 50-day line a chance to catch up, the LNG bet should be put on hold for at least a few days, maybe even forming a handle.

The ALB stock market experienced a roller coaster ride this week. The lithium giant fell to 232.75 on June 1 after rising about 15% in the previous week and bursting above an early entry at 248, however it found support around the 21-day line. Over that early entrance, Albemarle shares closed the week down 7.4 percent to 250.76. With a handle purchase point of 273.78 on a weekly chart, ALB stock is currently a buy candidate. After Monday, you’ll be able to see it on a daily chart.

However, a prolonged break would allow the 50-day line, which is currently below the 200-day, to catch up with the 200-day line. In May, Albemarle shares soared 35% owing to two large adjustments to full-year profit forecasts, which were boosted by rising lithium prices.

On May 31, ZIM stock plunged 6.4 percent but returned to complete the week just 0.5 percent down at 67.70. On a weekly chart, ZIM stock currently has a handle, indicating that it should be purchased at a price of 68.63. After Monday’s close, that handle may emerge, but there wasn’t much of a shakeout prior to May 31. In addition, ZIM stock is up 11.9% from its 50-day moving average.

Market Rally Analysis

The S&P 500 and the Nasdaq both lost ground this week as markets took a pause.

Was last week’s market rally-building week or was it ominous? It’s all predicated on the following step. After a period of robust advances, it was not a surprise to see a reversal. It has given rise to various handles. But was this just a halt before the main indexes regained their footing, or was this the beginning of a long-term decline? Another stage would be to break above this week’s highs. For the main indices, the 50-day moving average is looming, followed by a number of other important milestones.

A senior Federal Reserve member said this week the Fed won’t ease policy unless inflation and the job market both soften significantly. However, the economy will suffer as a result of this transition. That the stock market fell on Friday despite the May employment data indicating robust hiring illustrates that investors aren’t exactly sure what constitutes “good news” at the moment.

With shale, refineries, integrated companies, and coal producers, as well as LNG bets like FLNG stock all growing, the energy sector is booming. The value of solar equities is also rising once again. There are shippers like ZIM stock, lithium bets like Albemarle, a few retailers like Dollar Tree, and a few building-related firms that might be worth checking at.

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