Market Rebounds Despite Iran Strikes; Golar, Trane, SiTime In Focus

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0:25Justin Nielsen:Good afternoon, everyone, and welcome to Stock Market Today for Monday, March 2nd. It's Rachel Fox here. Today, we saw the major indexes recover from some early volatility. They gapped down on the U.S.-Iran conflict. And here to help me break down all that you need to know about today's market action is IBD, head of market reform. Research, Justin Nielsen. Justin, what's on tap for us today?

0:50Rachel Fox:Well, yeah, it was really interesting to see that very strong comeback. And we'll talk about some stocks that were affected by the strikes and some that maybe weren't so much. So we'll take a look at Golar, LNG, definitely affected by the Iran strikes. Train Technologies, symbol TT. And then also, I'm not sure how it's pronounced? Sightime? I think you came up with it. This is revisiting one that Ken talked about last week. So we'll take a look at that one as well.

1:21Justin Nielsen:All right. Very good. We will get into those. But quickly, just a review of the major indexes. We saw the S &P 500 close around break even. The Nasdaq was up roughly 0.4 percent. The Dow Jones was down 0.2 percent. And the Russell 2000 led the indexes up around 0.8%. So it was quite a comeback for some of the major indexes. We definitely saw the indexes open lower. It was looking like investors were fleeing to those safe haven assets. We saw oil prices surge along with gold. By the end of the session, those kind of came off highs. The Nasdaq was in the green. And the Dow Jones and S &P shrank their losses by quite a bit.

2:07Justin Nielsen:And as we always talk about, a week open with a stronger close is a positive thing. That's the kind of action we like to see. But Justin, tell me more about, you know, your thoughts on what we saw today.

2:19Rachel Fox:Yeah, certainly one of the things that, again, when there's uncertainty and when there's war going on and everything, people really kind of tend to get defensive. But sometimes that's not necessarily the right call. We were talking about on IBD Live this morning how in the buildup to Iraq, the going into Iraq in 2003, March of 2003, we had a follow through day. You saw a very strong reaction after the first Persian Gulf War back in the 1990s. And so sometimes it's the anticipation that can kind of make things a little funny. but then once it's kind of out there and it's happening, sometimes the market can kind of say, okay, well, now I can price this in because it's happening.

3:05Rachel Fox:That doesn't mean that there's not gonna be some back and forth, and again, headlines can really be tossing things to and fro, but what we saw, again, was pretty remarkable this morning. We were down 1.6 % on the NASDAQ composite, and as you mentioned, that that closed positive for a gain today. The Russell 2000, the small cap index, That was down 1.4 % and was a very whopping, you know, almost 1 % gain by the close. So these upside reversals that we saw are sometimes buying opportunities. Now, that doesn't mean that we're necessarily out of the woods with a lot of the mega cap companies like the MAG7, MAGS would be one way to kind of look at that.

3:48Rachel Fox:You know, these have been under pressure and it doesn't necessarily mean that these are ready to go. But we've we've continued to see these areas of strength. And today was a great example. Just a lot of companies that were actually set up and having really good days. I, in particular, was looking for stocks that were trading in the higher part of their ranges. And there were plenty to find today. So, you know, between the Russell 2000, you know, just one more look at that, because I think it's notable that it got support right there at its 50 day moving average line again. And it's closed above its 50 day moving average line this entire time since it crossed above that line back in November.

4:30Rachel Fox:So I think that was November 25th. So this is certainly one of the stronger indexes. And let's also remind folks that RSP and EQAL, this is the equal weighted S &P 500 and equal rated Brussels 1000, respectively, EQAL. Yes, Those are both at highs. So again, for as much as the NASDAQ and mega caps have been a little bit on the ropes, there have been plenty of stocks, especially in the broader universe of your large caps and small caps that have been doing just fine. And one more nod to another index that we don't talk about too often. And I loved Elizabeth Banks, her commercials that she did on the mid-cap companies.

5:13Rachel Fox:But MDY is worth a mention. this was also having a very nice day up almost as much as the S &P, not the S &P 500, the Russell 2000, excuse me, and potentially coming out of a sideways area. This one has been holding on to its 21-day moving average line really since kind of moving above that back in December.

5:34Justin Nielsen:Yeah, and it looks like this one is also close to potentially breaking into new high ground as well, something to watch out for. Thank you for the review on the major indexes and the action here. We're still seeing the NASDAQ below the 50-day line and its 21-day line, but this positive close is something to be positive about and to definitely keep an eye on. Another area of the market to look at is UFO, which was our stock of the day today. It is Space ETF having a really nice day, closing up 3.8 percent. Also getting support right at around that 50-day line there, moving above some short-term resistance here.

6:23Justin Nielsen:Tell me about, you know, why this one is worth reviewing today.

6:27Rachel Fox:Well, certainly I'm not going to, you know, spoil it, have people go read the article that Paolo spent his time on. But here's kind of a quick footnote to mention on this. Look, there's a lot of aerospace and defense stocks in there. And whether you're looking at XAR, SHLD, or, you know, what is it, ITA, there's a lot of these aerospace defense stocks that were doing well. RTX in particular, this is used to be called Raytheon, but they, of course, make Patriot missiles. So, you know, anytime something's going on where missiles are being used, this gets a lot of attention. That had a nice gap up.

7:04Rachel Fox:Now, a lot of these did close off their highs, not RTX. So, you know, that was something to just be mindful of. Sometimes things can start one way and turn around the other way. We saw that with the market, of course, on the positive side. But, you know, you have to be careful because sometimes the obvious choices maybe are sometimes too obvious. And people kind of take the opportunity to, maybe they were buying that in anticipation of some of this, you know, some of the strikes, these strikes happening. And so now when it's happened and the stock pops up or the position pops up, sometimes they'll take their profits.

7:45Rachel Fox:You know, but look, these are still set up, still looking very positive. And we don't know how long this is gonna last. So there might be some benefits to some of these defense aerospace and defense stocks. And that does include the space ones. You know, when you say UFO, a lot of people might be thinking, oh, it's, you know, space creatures and aliens and stuff. But this is really, I mean, when you talk satellites, launching things into space, getting those satellites up there, there's a lot that has to do with our communications, our, you know, with war. global positioning systems and everything else that is required for these missiles and drones to have ways to get to their targets and in a more smart way that minimizes the destruction to innocent civilians and casualties.

8:35Right.

8:36Justin Nielsen:Yes, exactly. Why a lot of these names are coming into focus now. Another area that we should definitely take a look at would be gold GLD. This one continued higher. It had quite the day last week on Thursday, where it did close near highs after earlier declines. And now it is back inside of this profit taking zone here from a breakout from a cut base. Tell me about this chart here.

9:06Rachel Fox:Well, you know, certainly one of the things you expect is, again, when there's uncertainty, there's a flight to safety. And that's one of the things that has maybe made gold a little bit more attractive lately. Silver does have more industrial uses. SLV was not having as fun a time, although it did close off its lows, but it was down 4%. So look, these are areas that have had such huge run-ups. And gold, I think, you know, maybe didn't have as much of a run-up and it also didn't get clobbered as much as silver did. But look at this. This is after really coming down pretty hard down to its 21 day moving average line.

9:47Rachel Fox:It has seemed to get support. And it, you know, it is not inconceivable that this could get right back up above 500 and to new high ground in short order. So certainly one to watch. And you had a lot of the gold miners that were doing well. So one of the other areas to look at here is GDX, which is the Banect Gold Miners Fund. This did close a little bit down, but still, this already made highs last week.

10:13Justin Nielsen:Yeah, it did. And it got above the more recent highs of 113.50 here. So yeah, for GLD, an area to watch would definitely be 500 and the recent 509.70 highs. One more area that we have to take a look at, we'd be remiss if we didn't, would be XLE, which has been representing energy stocks, oil and gas has been on, you know, a really strong tear the past few months. You know, a nice pop today, pushing higher into this profit taking zone. It did come off highs, but it still closed up 2%. What are your thoughts on what's happening here? Yeah.

10:51Rachel Fox:So and this is where one of the things that's important is when you are playing in the oil and gas space to kind of recognize, hey, do I have oil or do I have gas? You know, USO looks very different. This is the U.S. Oil Trust Fund. And then you look at UNG, which is the natural gas, and that has especially been in a pretty nasty, let's go ahead and look at the weekly on that real quick. That's been in a pretty nasty downtrend for a while. But you have a lot of, especially the liquefied natural gas, and that's what we're going to talk about with Golar, you have a lot of the liquefied natural gas going through the Persian Gulf.

11:27Rachel Fox:And with Qatar getting a lot of drone strikes against them, they shut down a lot of their production of liquefied natural gas. And so that is going to put some pressure on prices and especially the transportation of transportation and pipelines of that, you know, those folks that are taking the gas, kind of making it so that you can transport it, which means they have to get it really cold and then basically put it back into a form that can be used again. So, you know, this is this is important. It's something to be watching. And again, there might have been a run up already, certainly that started with Venezuela when Maduro was removed from Venezuela and has continued as some of the saber rattling has gone on with Iran.

12:13Rachel Fox:And now this is, again, having a very strong move. You might think, OK, a little bit extended at this point, but there are certainly areas to be watching. And again, we'll cover Golar in a little bit more detail next.

12:53Justin Nielsen:Greater certainty. Private. Secure. Authoritative legal AI. Yeah, let's go there since we're on that topic. Golar LNG. You know, this one. Oh, it's actually GLNG.

13:07Rachel Fox:But I mean, LNG. So it's Golar LNG is the name of the company. There we go. But the ticker symbol is GLNG. I will say LNG, Shanir, that you just brought up, kind of in a similar boat. They do the same things, a similar boat, literally, because they have the Marine Transportation Services. But yeah, GLNG is certainly one that was looking strong. And look, this had a very long saucer base, you know, very kind of shallow, only a 24 % depth. It has proven that this can move. You saw that back in 2024, where it had this really strong move and then has been basing for quite a while here. But now it looks like last week was, again, Again, a little bit of a downswing closed up in the upper part of its range.

13:54Rachel Fox:Very strong earnings growth, 150 % for last quarter with 100 % on the revenue growth side. So very good there. And this was a breakout. You know, if you take a look at this, you know, just your classic breakout. So this is something where a way to play it. It's not too far extended like what we just saw with XLE. Let's take a look at the daily chart real quick. You can see how a little handle got tacked onto this cup. Maybe not long enough for pattern recognition to recognize it, but I'm going to give it to my eye saying, hey, that's a little handle that got tacked on. And it's crossing that downtrend of that handle today.

14:34Rachel Fox:So that was a legitimate entry here. And again, this could have some volatility as these strikes happen and, you know, as news comes out, whether or not this is going to last for a while, how long things might be affected. But right now, this is looking like a breakout. Technical action looks strong. And you have a way to manage your risk. You could either be using the 21-day moving average line. You could use today's low if you wanted to be very tight, the 21-day line, which kind of corresponds to Friday's low. Or if you wanted to give it a little bit more room, you could use the low from that upside reversal, the pink day, where it did test that 21-day moving average line and closed above it.

15:16Rachel Fox:So you've got ways to manage your risk and cut the loss short if this doesn't work out.

15:21Justin Nielsen:Yes, shakeouts sometimes can provide you with those levels. Definitely a good one to keep an eye on. Let's also move over now to Psy Time. I hope I'm pronouncing that right. But SITM, one that we bring up a lot on IPD Live early on in the day. This one, nice, you know, over 10 % move here coming up to highs from this short little consolidation area. Another one that's getting support at that 21-day line, round number 400 level here. What's your analysis on this?

15:56Rachel Fox:Yeah, I couldn't have said it better myself, Rachel. Those are two of the things that absolutely jumped out at me, that support the round number of 400, support the 21 day moving average line. And you have kind of a little downtrend here. So you could either go for that straight horizontal line or the little downtrend. So when you have two ways to kind of enter in something and it's checking off both those boxes, that gives me a little bit more of a conviction in the stock. Now, the fundamentals on this are even even stronger and they go back further. You know, with GLNG, that was something that was kind of like, oh, OK, it had a really strong quarter this last one, but you go back a little ways and it's not so great.

16:36Rachel Fox:We at least have three quarters here where you have triple digit earnings growth and some very solid double digit sales growth for the last three quarters. So that's that's a very strong sign. You know, it has come from, you know, 18 cents for earnings per share back in 2023 to 93 cents in 2024 and then 320 in 2025. with an expectation for another pretty strong year here, 519 for 2026 on the estimate side. So it is growing. You know, now, look, a lot of times, you know, we're looking at the semiconductors, the Fabulous, and everyone's attention is on NVIDIA. NVIDIA has, you know, kind of been a little bit sideways and, you know, poking around its 10-week moving average line, whereas CyTime has really been getting support at the 10-week moving average line and has been in a better uptrend, stronger relative strength, stronger relative strength rating.

17:31Rachel Fox:So a lot, you know, that seems to be going well for this chart here. And again, it's got the earnings chops behind it with that great earnings growth, too.

17:40Justin Nielsen:Yeah, very, very good one to keep an eye on. Nice move today. We'll continue to monitor this one to see if it can follow through on this strength here today.

17:51Rachel Fox:And as a reminder, this was brought up last week on stock market today. So while it might, you know, you could have been using that as an actionable level when it when it did cross that downtrend line, it did come in, test that 400 and that 21 day moving average line one more time. So if you did get shaken out there, this is another chance to get into it. If you're cutting your losses quickly, you can afford to get shaken out a few times before the one that works. and they don't always work, but at least if you're cutting your losses quickly, you can try and try again.

18:27Justin Nielsen:Yes. Justin, one stock that would be good to revisit from Friday's Stock Market Today video is NRT, nope, do I have that right? NTR. NTR, there you go, NTR. We saw fertilizers moving. This one continued to follow through on Friday's strength, although it did close off highs. Any thoughts on this chart?

18:50Rachel Fox:Yeah, so I did think this was interesting. Again, you kind of had some strength here in anticipation possibly. But one of those things where this one did not close as well, it was up significantly more at the start of the day. And so were a lot of the group mates, CF, Intrepid Potash, Mosaic. You know, a lot of them did close off of their highs. But what you have going on here, again, this is something that Mike brought up on Friday. And it's not like he knew what was going to happen over the weekend. He was just looking at the technical action. But, you know, with NTR, you have a lot of fertilizers that are dependent on ammonia and urea.

19:29Rachel Fox:And that goes through the street of Hormuz. So with all of the fighting that's going on there, that does potentially bring some shortages there. And so, yeah, the fertilizers could see a rise for that. So something definitely to watch. And did we go over train technologies?

19:44Justin Nielsen:No, we're going there next. Yeah.

19:46Rachel Fox:Okay, perfect.

19:47Justin Nielsen:Going to TT now, part of the AI data center plays. This one is in cooling. So creating those, you know, for the data centers, creating cooling technology. This one got support at the 21 day line, continued back into the buy zone here. Yeah. Thoughts on this chart? Yeah.