The stock market rally continued its upward trajectory, with the Nasdaq composite reaching a new all-time high, joining the S&P 500. Some notable stocks to keep an eye on during this rally include Taiwan Semiconductor Manufacturing (TSM), Monolithic Power Systems (MPWR), Microsoft (MSFT), Palantir Technologies (PLTR), Deckers Brands (DECK), Eli Lilly (LLY), Coherent (COHR), and Uber Technologies (UBER). These stocks, known leaders in the market rally, have been consolidating for a few weeks, presenting new buying opportunities for investors.

Several of these stocks are focused on the promising field of artificial intelligence (AI). Nvidia (NVDA) and chipmaker Taiwan Semiconductor have gained momentum in advanced semiconductor technology, riding the wave of AI development. However, it is worth noting that both the Nasdaq and S&P 500 are currently extended once again. After a brief window of consolidation, investors may want to exercise caution.

Among the stocks to watch, Uber stands out as it makes its way onto IBD Leaderboard. Microsoft, Palantir, Eli Lilly, and Taiwan Semiconductor stocks are featured on SwingTrader. Furthermore, Microsoft is highlighted as an IBD Long-Term Leader, while Monolithic Power is on the Long-Term Leaders watchlist. Palantir stock is listed on the IBD 50, and Deckers stock, Palantir, and Uber Technologies can be found on the IBD Big Cap 20.

In an embedded video analyzing the market's recent action, attention is drawn to Taiwan Semiconductor stock, as well as Tidewater (TDW) and Confluent (CFLT).

Looking at the overall market performance, the Dow Jones Industrial Average experienced a slight dip of 0.1% in the previous week's trading. Apple stock and UnitedHealth acted as drags. However, the index remains close to its all-time highs. Conversely, the S&P 500 index rose by 0.9%, hitting a record high on Friday. The Nasdaq composite had a strong showing, gaining 1.7% for the week, finally reaching a record high for the first time since November 2021. Additionally, the small-cap Russell 2000 surged by nearly 3%, surpassing December's 22-month high.

The Nasdaq's recent pause, which dates back to February 12, has allowed several stocks to forge new buying opportunities, including Taiwan Semiconductor and Microsoft. However, with the strong finish to the week, the Nasdaq is now 5.8% above its 50-day moving average, indicating a slight overextension. The S&P 500 stands at 5.1% above that level. While further extension is possible, the risks of a pullback are on the rise.

In the commodities market, U.S. crude oil futures jumped by 4.55% to $79.97 a barrel, reaching over $80 during Friday's session for the first time since November.

Among the growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) saw a rebound of 2.6%. Microsoft, a significant holding in the ETF, is joined by Palantir. The VanEck Vectors Semiconductor ETF (SMH) also soared, climbing by 5.5% to reach a record high. Taiwan Semiconductor stock and Monolithic Power are components of this ETF.

Sector-wise, the SPDR S&P Metals & Mining ETF (XME) rose by 2.2% in the previous week, while the Global X U.S. Infrastructure Development ETF (PAVE) advanced by 2.35%, extending its weekly win streak. The U.S. Global Jets ETF (JETS) experienced a slight decline of 0.2%, while the SPDR S&P Homebuilders ETF (XHB) climbed 2.9%. The Energy Select SPDR ETF (XLE) also saw gains, rising by 1.4% and reaching a four-month high.

In terms of healthcare, the Health Care Select Sector SPDR Fund (XLV) fell by 1% but managed to rebound on Friday from the 21-day line. Eli Lilly stock, a significant holding in XLV, experienced a 3.8% increase, closing at a new high of 782.12 following a price target hike from Bank of America.

The Industrial Select Sector SPDR Fund (XLI) rose by 1.1% to set another record high, while the Financial Select SPDR ETF (XLF) closed just below a two-year high with a minimal change.

Reflecting the volatile nature of certain stocks, the ARK Innovation ETF (ARKK) showed a bounce of 5.6% last week, and the ARK Genomics ETF (ARKG) saw a 4.7% uptick.

Among the specific stocks, Taiwan Semiconductor reached a notable increase of 4.1% on Friday, briefly surpassing a short consolidation period and approaching the February 27 high. Monolithic Power also saw a rise of 3.3% Friday, extending the previous day's upward movement, as it broke a short downward-sloping trendline. Microsoft stock has been consolidating after hitting a record high on February 9th, while Palantir stock jumped by 8.5% last week, though it slightly retreated from a two-year high on Friday. Deckers stock broke through a short consolidation period and climbed 2.6% over the week. Furthermore, Eli Lilly stock experienced a boost of 3.8% following a price target increase from Bank of America. Coherent stock also jumped by 6.7% on Friday, breaking through the downtrend of a short consolidation period. Finally, Uber stock rose by 3.6% within the week, nearing its previous high of 81.86.

As the market rally continues to display its strength, it is advised that investors remain significantly or heavily invested. However, the recent start-stop action of the market, with pauses and brief pullbacks, has presented opportunities for investors. It is crucial for investors to be patient yet agile, ready to capitalize on entry points as they arise. This requires thorough analysis, running screens, and maintaining a well-prepared focus list.

While several market rally leaders with an AI theme have been highlighted, investors should also consider emerging stocks from other sectors, such as Tidewater. Though they may have slightly lagging relative strength, these stocks may offer true bases for investment opportunities.

For those who have taken advantage of recent buying opportunities, it is essential to stay nimble and have exit strategies in place. Regularly following The Big Picture and staying up-to-date with market direction and leading stocks and sectors is highly recommended.

For more information and stock market updates, follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson.