This story was originally published here.
Individual stocks rally and fall every day. But inside today’s bull market, the Nasdaq-100 and its component stocks have demonstrated the kind of leadership critical to sustaining the wider market rally. And right now, three Nasdaq-100 stocks are ‘still’ working hard to ensure that friendly trend continues.
Delta Airlines (NYSE:DAL), Boeing (NYSE:BA), Caterpillar (NYSE:CAT), Las Vegas Sands (NYSE:LVS) and more are just a few of the big names supporting NASDAQ gains. By Tuesday’s closing bell, these large-cap stocks had advanced strongly.
This is especially important considering that those names have been a veritable who’s who of stocks that have lagged the broader averages since late March’s coronavirus-induced bottom.
Of course, there’s nothing wrong with that, and it would be a mistake to be dismissive. On the session, S&P 500 added 1.27% and for the first time since the bear market bottom, moved convincingly above its 62% to new relative highs, turning bullish.
Reports of a new vaccine trial from biotech Novavax (NASDAQ:NVAX) and renewed economic optimism following a mostly successful test of new social hygiene standards during the Memorial Day holiday helped with those gains. But elsewhere in the market, Tuesday’s early optimism faded fast.
The tech-heavy Nasdaq-100 and many of its top constituent stocks, which led U.S. equity markets higher over the past two months, has stumbled.
The index closed fractionally lower as influential leadership from Microsoft (NASDAQ:MSFT), Netflix (NASDAQ:NFLX) and other heavyweights was absent, even counterproductive, with many of those stocks closing firmly underwater.
The good news is that a single day does not a trend make. It’s quite normal for leadership within a bull market to take a break. It is after all, a market made up of stocks. And even the best of the best are prone to profit-taking. Having said that and as long as the pause we’re seeing right now doesn’t turn overtly symptomatic of a bearish top, it’s time to have a watch list of Nasdaq-100 stocks to buy.
Nasdaq-100 Stocks to Buy: Apple (AAPL)
Source: Charts by TradingView
The first of our Nasdaq-100 stocks to buy is Apple. Shares of the diversified consumer technology giant have narrowed the market cap gap against Microsoft in recent days. And three new upwardly-revised, above-market-rate price target hikes from Wall Street could be what’s needed to put shares back atop the valuation food chain.
Technically, shares of Apple have attempted to break out of a tight handle congestion pattern formed off the 76% retracement level of its cup shaped corrective base. However, the initial reaction has faltered, so shares are modestly trading back inside the handle formation.
My advice for this Nasdaq-100 stock to buy is wait on a flattening of stochastics, then watch for price action to confirm a daily chart pullback entry. The observation is the current handle could fall victim to a bear raid. But as long as shares remain above $294.69, any additional price weakness could be viewed as a healthy opportunity to buy shares within the larger cup base.
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