Technical analyst Ari Wald of Oppenheimer & Co., thinks the way to play the market is load up on Apple, Amazon, Nvidia, and Alphabet — not only Magnificent Seven names but, in the case of the first three, also Dow Jones Industrial Average components — and sell the Dow’s laggards such as Home Depot, IBM, Nike, and Salesforce.
Paul R. La Monica for Barron’s:
“Concerns around overbought trading often coincide with skepticism towards momentum investing,” Wald wrote in a report. “However, momentum has historically been a durable late-cycle outperformer.”
DataTrek Research co-founder Jessica Rabe is confident that the strength of the tech-heavy Nasdaq “reflects renewed momentum in the AI-driven tech bull market, not its end.”
The same is probably true for the iShares Edge MSCI USA Momentum Factor ETF, which is loaded with leading chip and semiconductor equipment stocks. Top holdings in the ETF are more than a few familiar names—Micron, Broadcom, Nvidia, Intel, AMD, and Lam Research.
MacDailyNews Take: You could certainly get worse market advice than “buy Apple.”
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