A Day of Great Gains for Retail and EV Stocks as Market Rallies

Finding opportunities in various market situations is essential for day trading. The markets are in a rally now and, with direct market access trading, you can trade better.

Market Rally Powered by Retail Sales

The stock market has been through a strong rally, particularly on Tuesday, November 17. All three indexes reported strong gains, with the Nasdaq Composite and the S&P 500 rallying to close just before the latest all-time highs. The primary catalyst for this has been the encouraging retail sales figures in the United States. It is an indication that American consumers, on average, have pretty strong financial resources. Despite the pressures of inflation, consumers have managed to maintain their ability to purchase. While Dow Jones grew 0.15%, the S&P 500 index rose 0.4% and the Nasdaq Composite rose 0.8%. Even the Russell 2000 index of small-cap stocks rose 0.1%.

The Retail Headline Grabbers

Retailer Lowe’s ($LOW) cleared its three-weeks-tight pattern, as did Home Depot ($HD). Lowe’s jumped 4.2% to hit 244.78 in anticipation of its earnings report on Wednesday, which eventually turned out to be estimate-beating. Home Depot earnings beat expectations, and they reflected on the stock that soared 5.7% to hit 392.33. Target ($TGT) rose further up in the buy zone. It grew 1.1% to hit 266.39. The company’s earnings report on Wednesday did beat estimates. Walmart’s ($WMT) Q3 results weren’t impressive, resulting in the stock dropping slightly.

The EV Attention Grabbers

However, retail stocks weren’t the only ones that made encouraging progress:

Electric vehicle (EV) stocks stole the limelight. Lucid Motors ($LCID) and Rivian ($RIVN) led the electric industry charge as Tesla ($TSLA) rebounded. Rivian soared 15% to 172.01. It has kept going up ever since it went public on November 9 and is now over double its offering price of $78. Lucid rose 24% to get to its highest value in nine months, buoyed by the massive growth in reservations for Lucid Air since September-end.

Li Auto ($LI) and Xpeng ($XPEV) became actionable. With its new electric SUV set to be revealed on November 19, Xpeng rose 5.3% to cross the 48.08 buy point to 50, reportedly the stock’s highest ever close since January. The company is set to report its earnings on November 23. Li Auto too jumped 9.75% to hit 32.76 and get closer to the 34.93 handle buy point as the chart below shows:

(Img source: https://www.investors.com/)

Tesla grew 4.1% to get to 1,054.73. That was a rebound following the drop of over 15% in the past week and the 1.9% fall on Monday. Shares have rebounded to go past the 21-day line. The following chart depicts the state of the stock at the market close on November 16:

(Img source: https://www.investors.com/)

CEO Elon Musk is currently selling Tesla shares, which has impacted the business. The stock was observed to have really extended from its 50-day line at its peak on November 4.

Clearly, many stocks have had a great time on Tuesday, November 17, along with the overall market rally. Get started in online stock trading with advanced software. There are some pretty great opportunities out there.

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I am an experienced day trader and investor, being an active participant in Wall Street since 1990. I have experienced the highs and lows of the stock market and rely on instinct as well as hard data to make trading decisions.