Major Indexes Hit New Highs In Broad Rally; Tesla, Kratos, Hinge Health In Focus

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0:40Good afternoon, everyone, and welcome to Stock Market Today for Thursday, September 11th. It's Alexis Garcia here. And the major indexes hitting record highs today amid a broader market rally. and we had some more inflation data roll in to help set expectations for Fed rate cuts this year. And here with me to help break everything you need to know about today's market action is IBD News Editor Ed Carson. Ed, how's it going today? It's going pretty well. It was a nice day on the market. I want to take a look at three stocks that were flashing buy signals, Tesla, Kratos, and Hinge Health. All right.

1:20Well, this is round three for us this week. And I'm sure everyone's excited to get a break from me, at least. But yes, before we get to those stocks, let's check in on the major indexes. The S &P finishing the day up almost nine-tenths of a percent. The Dow leading the way up 1.4 percent. The NASDAQ up seven-tenths of a percent. And I actually misspoke because it was small caps that bested today up 1.7 percent. So some strong moves there in the market, Ed. And let me get my screen up here so we can take a closer look. And, you know, when we talked yesterday, a lot of the AI plays were doing well, but it didn't seem like a lot of other stocks were participating.

2:03Not the case today, but we're on the S &P 500 daily chart here. And as you can see, a nice, robust move today. Yeah, really nice. It was really broad. You know, all the major indexes are at record highs, but they really feel like they've got escape velocity now. You know, like, you know, they've been nudging out. There's been some highs. They definitely have. But they didn't really feel like they'd left the ranges, you know. And obviously, that's why you have to be paying attention. Sideways markets are so tough, but you always have to be ready. Well, maybe this move is going to be the one that really does carry through.

2:38It does seem to be gaining momentum. We saw, again, all the indexes and ETFs we're going to look at. They're showing, you know, showing strength. At least in a lot of stocks, flash buy signals. A lot of others moved up. So really powerful and really strong day. I mean, the CPI data was basically in line. There was a big jump in jobless claims. But ultimately, a lot of that was Texas-related, like Texas flooding. So basically, it ended up FEDs locked into a quarter-point rate cut. That's what everybody expects. So I think markets are just like that certainty, or at least perceived certainty, heading into next week's meeting.

3:16Right. Well, let's take a look at the NASDAQ, Ed. And this one, again, having a nice day and, again, getting above this 22 ,000 level here. Yeah, and this one had the clearest sideways action. You could very clearly see a few weeks of sideways action. And, you know, it was nudging past that for sure. But now it just feels like it's a little bit more, yes, a bad day and we're right back into that area. But it just feels like we might be at the start of another leg. And, you know, sometimes in that we've had a refreshment, that's been a lot of bases have been formed here and a lot of pullbacks, a lot of things.

3:50And stocks that move up, they really show relative strength. So there's that during that period. So looking strong here. All right. Let's check in on the Dow because that was a big winner today, Ed. See this nice, powerful move here up about 1.4 % closing at basically the top of that trading range today. Yeah. And there'd been sort of a little mini range above a prior several weeks of trading. So this one really out again. This one, you know, the relative strength line on the Dow isn't very good. But so it just doesn't tend to lead for any real length of time. But again, showing strength, showing breadth.

4:31All right. Let's just check in on small caps quickly, because this one leading the day today up about 1.8 percent, getting above this 2 ,400 level here, Ed, and another strong finish for small caps. Yeah, and it's a nine-month high. Relative Strength Line has been outperforming for a few weeks. It'd be nice if that could continue. But again, seeing a lot of breadth today. And speaking of breadth, let's check in on RSP. That's the S &P 500 equal-weighted ETF. And this week, we've been talking about you know, the indexes being near record highs, but we haven't really seen the breadth. Well, today, not the case.

5:13This up about 1.5 percent, hitting around this 190 area here. Yeah, it looks like a record high for the RSP. So really strong in that regard. Yeah. And it was always doing, it was doing fine. Like yesterday's drop 0.1. It wasn't like it was a bad day. It just wasn't a good day yesterday. QQEW, that is in some ways the most encouraging. Yeah, let's hop over to that one. This one up about 1.4 % today, getting back above that 50-day line, Ed. And as you mentioned, this one kind of been middling here a bit, not doing too much, but it looks like another good move today. Yeah, I mean, this one, again, getting above the 50-day line.

5:58This was almost like if this were a stock, you'd be saying, hey, that's an early buy signal kind of situation. Yeah, this was getting above the 50-day line. This is still clearly the laggard right now. But when your laggard is starting to look okay, you know, and like that, then, you know, when you're going from really good to okay, as opposed to really good to, that's not very positive. So that's the part of the shift. There does seem to be, Everything seems to be moving right now. All right. Well, let's just take a look at the 10-year Treasury yield quickly. This falling again today down half a percent, getting close to this four-point level here, Ed.

6:38So thoughts here with the yield. And, you know, our producer, Meredith, loves to call you Ed on the Fed. So give us whatever insights you have with what's going to happen with interest rate cuts next week. Yeah, as I was saying earlier, it does seem like a quarter point cut is pretty much going to go. We've gotten through all the major and there's always more economic data, but it seems pretty clear that's what they're going to do. The federal price signal, more cuts are coming. Maybe we won't be definitive about it, but leave the door open to that. These lower yields, that means cheaper mortgage rates are falling.

7:09So that provides a lot of, you know, certain borrowing costs are down. So this is all positive for the economy. It's falling in part because of concerns about the economy. So there is that flip side. I mean, if it's sort of like the Fed is going to help the economy out, well, that's because it needs help. I mean, the market's doing well, so it's just going to get a nice extra push. So been positive for the markets for sure. Right. Let's take a look at some ETFs, starting with FFTY. That's the IBD50 ETF. And this one's been acting well over the last couple of weeks, but another nice move today, up 1.7 percent and almost getting extended here, Ed, from that 50-day moving average.

7:53Yeah, the indexes do not look extended. So that's positive. But this is moving out quite strongly. And there's some names that are really moving. There's some AI names, some Bitcoin names, some other speculative growth names that are really doing well. So, yeah, this is out there. The RS line has been improving. It's not quite at highs, but you can definitely see the uptrend over the last several months. For the last several months, these speculative growth names have been doing really well. All right. Well, let's take a look at chips, Ed, because we've been looking in on SMH a lot this week. And I mean, very nice run here over the last couple of weeks.

8:34Up today, about one percent, but closing at the bottom of that trading range, Ed. So any thoughts here with chips? Yeah, I mean, with a lot of chip names are really extended. So this is one way to play it. I know it's not, it has some laggards and maybe some of the hottest names are these smaller names that aren't going to be an SMH. But this is one way to play it. But it's acting very well. It's right at highs. I mean, yeah, it came off highs. There were some names like, you know, that turned low or such that after big gains, after solid gains yesterday, but really acting well. All right. Let's take a look at financials, Ed.

9:09That's ticker XLF. That's the financial select sector spider. This went up about 1.7 % today. Powerful move above the 21-day line here, Ed. So any thoughts here? Yeah, there was a bad day a few days ago. That's still not sure exactly why it was so negative that day for financials. But financials had a good day. There was definitely some that flashed buy signals today or setting up or moving higher in buy zones. Don't neglect this area. And it'll be interesting to see how they react to the Fed. All right, let's look at industrials. That's ticker XLI. This one up about nine-tenths of a percent. A nice move above the 50-day line here, Ed.

9:53So again, what is this telling you about the broader market breadth? Yeah, this is a positive sign, not just for the fact that it's rising, but because as you see, it's high. There's a lot of these aerospace stocks that are near that have been doing well as well. And there were a number that did well today in aerospace and industrial. So, yeah, again, another stock, another area that would look like maybe is it struggling? It's like, well, maybe not. No, it is getting above that. So the stuff that was lagging just ever so slightly stepping up a little bit today. All right. Let's wrap this up with a look at XHB.

10:28That's the SPDR Home Builders ETF. And again, this was one we've been keeping an eye on, struggling the last couple of days, but today up 2.6%. Yeah, I mean, this really never did anything really wrong. It had a big move. It pulled back to sort of around the buy point, strengthened here. There's some tailwinds with interest rates, you know, that people expected. The numbers are going to look terrible for the home builder earnings for the little while, but everybody's expecting those earnings to turn around going forward. Introducing Fidelity Trader Plus, the next generation of advanced trading from Fidelity.

11:05Customize your tools and charts and access them seamlessly across desktop, web, and mobile. For faster trades anywhere you go, try the all-new Fidelity Trader Plus. Learn more about our most powerful trading platform yet at fidelity.com slash trader plus. Investing involves risk, including risk of loss. Fidelity Brokerage Services, LLC. Member NYSE SIPC. All right, well, let's get to some hot stocks, shall we? Starting with Tesla, Ed, this one a big mover today, up 6 % and revving above this buy point of 367.71. Yeah, really strong move, above average volume. There was above average volume a few days ago, too.

11:49That was nice of that little bit of thing. So it's going to be a good week for that on the volume bar. Got above that consolidation. And it has been trending up. I mean, you see these higher highs, higher lows. So some early entries were fizzling, but that was partly because it was a sideways market. You look at the RS line, it's not a consolidation highs, and it's definitely not a 52-week highs, but it is trending higher. So some positives here. I do always caution this. Every growth investor that I seem to pay attention to on X, and I really respect a lot of them, so many were fixated on Tesla even before today.

12:22And that just always makes me worry, is it going to be a bunch of growth investors pushing it up, and then can they keep pushing it up? There's also the question about fundamentals. Obviously, it has to, the bet is that Elon Musk will deliver on these things, and that's the bet. It's not going to happen right away. This quarter might be better because of the end of the EV tax credit, but then the following quarters will be worse. So, obviously, it's a growth story, but nice move here. Again, this was added to swing trader today, and I think people could consider taking a swing trader attitude because of this up, down, up, down.

12:55if there is that thing. Because so much of it is sentiment. You can't point to this fundamental reason or this even this one. It's more like, so there's a possibility it rolls over again. It's a possibility this surges 30 % from here. So I don't want to be negative, but it's just, I think that one might consider taking partial profits just to make sure you have a winning trade and then letting it ride from there. All right, Ed. Well, let's move on to our next one. You mentioned some aerospace and defense names. So let's take a look at Kratos. That is also in the aerospace defense sector. This went up about 3 % today.

13:32And another one here, maybe close to being extended, if not extended already, Ed. But what are your thoughts here? Yeah, it is a little bit extended from the 50-day line. It's funny, but on the daily chart, it broke a trend line from this short consolidation. It's now clearly above the 21-day line. And it's just sort of getting above there yesterday. On a weekly chart, this one made a nice bounce off the 10-week line, but it would have been hard to buy before it got above maybe the trend line. Maybe you could have done something yesterday, but I know that was a little bit early given that it just came down.

14:04You know, there was things in there. So from the 10-week line, this might be like 9%. I'm not sure where it is above the 10-week line. That's pushing it. It's 8%. It's pushing it. Yeah. Yeah. And so it's possible this fills out a new base. So you could do a starter position and see how it develops or maybe it pauses here, whether it's a handle, if it's just some resistance area. But, yeah, this one's made a big move. It's really the, you know, maybe it's sort of almost tested the 10-week line a couple of months ago, but it's the first real test, I think. And so it was definitely a buying opportunity.

14:37The earnings are supposed to pick up next year. Also note that AVAV, it's another drone maker that had earnings yesterday or two days ago. And so it's been a nice move as well. So that was probably, well, it did make a nice move, then it reversed lower here, but still up since earnings. So that may be a positive for KTOS. All right. Well, let's hop on over to Hinge Health. That's ticker H-N-G-E. Another nice move here today, 6.8%, getting to that around 60 level. Yeah, this one's getting up there now. I think when it cleared the bulk of this trading for the last few weeks, I mean, it just sort of, you know, just sort of a draw the line kind of thing.

15:19It was a place you could start. Now, it's getting up there. You could still do it, but it is 16 % above that 50-day line. Let's be clear. So it's getting there. I would have loved for this to have drifted down to the 10-week line. It was, you know, it's not, it wasn't really there. It would have needed a couple weeks. But you could imagine if this had been sort of flattish, it would have just taken another week or so and it would have gotten there. it's an IPO you could buy this and quickly feel unhinged but it was a you know but AI healthcare there's some interest in this one you know definitely some there's been some strong growth and I'm not sure about the estimates going forward because again it's new so you're not quite sure how this all is but a few quarters of accelerating revenue growth massive loss in the first earnings report but obviously investors didn't mind the stock surged on the earnings report.

16:08So that was probably some weird gap and other things. Maybe the shares granted, I don't know exactly. But that's another thing. We haven't, you know, get more in there. So investors might want to just say, wait, see if this fills out a base or if it pauses here, sort of forms sort of a de facto handle. But this is a hot area, AI Health. There was another one, TEM. I own a position in that. That was flying today. That's not the same, but it's another AI Healthcare. There seems to be some, there was momentum in that kind of space today. So, you know, that's another area that could do well. All right, Ed.

16:45Well, thank you so much for your analysis today. And that's it for us today. We'll be back tomorrow morning with more market analysis, starting with IBD Live. You can get all the details there over at investors.com slash IBD Live. And just as a reminder, we'll have David Keller joining the team tomorrow. You get two special guests this week. So be sure to check that out. And thank you so much for watching. We'll have Justin Nielsen and Ed Carson back tomorrow for their weekly Stock Market Today wrap up. So be here tomorrow after the close.

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