Stock Trends

Who's in and who's out of the Nasdaq 100

Good morning,

The Nasdaq 100 is reconstituted every year in December and last Friday this year’s changes were announced. 6 new companies will be a part of the closely watched index, while 6 underperforming companies will be tossed out effective Monday.

This week, we’ll review the technicals for all 12 of those stocks as well as:

• Semiconductor breakouts

• Big movers within 3 of our ETF portfolio positions

• All-time highs for a big box retailer

• and more!

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These stocks are out of the Nasdaq 100

*Reminder that our universe of stocks for the Blue Chip Hot List is the S&P 500, Dow Jones Industrial Average, and the Nasdaq 100. So the following 6 stocks are now ineligible for inclusion, while the 6 stocks joining become eligible.

ALGN: Align Technology

ALGN isn’t a great chart, but Wednesday’s 6.4% gain closed the stock above its 50-DMA for the first time since early September. No reason it can’t get to $255, but that would be a logical place to fade this move.

EBAY: eBay Inc.

EBAY gained 2% in yesterday’s rally but will need an additional 1% to break out. Chart improving but no signs of relative strength.

ENPH: Enphase Energy

ENPH was up 7.8% yesterday but still hasn’t cleared $114. An everything rally could push it over, but this isn’t the place to bet on it.

JD: JD.com

JD.com has fallen more than 75% from its 2021 highs but is still a top 10 position in the MSCI China ETF we looked at on Tuesday. With holdings like this, no wonder you can’t own the ETF.

LCID: Lucid Group

It’s easy to hate on a garbage company like Lucid, but short term the stock could be setting up for a move. An inverse head and shoulders pattern would be completed with a move above $4.85. That would target $1 of upside, or 30% above yesterday’s close. To be clear, I think this is probably a zero at some point, but with 20% of the float sold short, the path there won’t be a straight line.

ZM: Zoom Video Communications

We’ve been watching this level since back in May, and despite some brief breaks, ZM has basically held $60. This looks like a potential base, but I would want to see it break out above $75 before I added it. Target would be $90.

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These stocks are being added to the Nasdaq 100

CDW: CDW Corporation

CDW was featured as one of our 10 big bases in tech and broke out last month. Good long-term chart, but notable dip in the relative strength recently makes it less attractive than some of the other bases.

CCEP: Coca-Cola Europacific Partners