Good morning,
The most important single-stock story this week is obvious: Nvidia.
After 6 months of sideways action and tons of anticipation, the stock broke out in a huge way on Monday. As the chart will show, the breakout measures to $600, or about 12% more upside from Wednesday’s close. But perhaps more importantly, the whole space continues to act incredibly well. This is a big reason why I cautioned against underweighting growth, even if value stocks have been leading.
This week, we’ll look at tech stocks bouncing back from support as well as:
Financial setups going into earnings
Stocks on the Blue Chip Hot List
52-week highs in healthcare
High flyers responding after corrections
and more!
*Please note, all commentary is based on and includes yesterday’s action, but due to data delays, all charts are through the January 9 close.
Big tech bounces back
Nvidia’s breakout measures to $600
$500-$400= $100 of upside. Certainly not looking like a false breakout either, with the stock higher each day after Monday’s powerful 6.4% breakout.
Apple bounces at support, still not a leader
Apple bounced at support I called out in the MMP, but it’s hard to have conviction this is more than just a bounce. I’m not saying Apple is going to go down in absolute terms, but I would be inclined to fade this rally to rotate into better opportunities. Gap resistance at $191.
But it’s not just Nvidia
LRCX: Lam Research
Big base Lam Research broke out, pulled back to support and is moving higher. Long-term base potential intact.
QCOM: Qualcomm
QCOM is a long way from all-time highs but the stock has formed a solid bottom over the past year and now broken out. Last Thursday’s low of $134 would be an appropriate stop for new money.
AMD: Advanced Micro Devices
AMD has been highly volatile but bounced off its summer highs and is making 52-week relative highs. $132 is key support.
MPWR: Monolithic Power Systems
Featured big tech base MPWR has broken out and bounced off previous resistance. Next step will be reclaiming $610 (the double-top breakdown point) but the long-term target remains $829.
Financials setups going into earnings
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