The index lost its hold on its key support, the 50-day moving average, on Monday amid a general mood of caution. Currently, Investor’s Business Daily’s stock screen shows that mutual funds are buying just 15 stocks. meta platform (meta), Nvidia (NVDA) Stock and three other Magnificent Seven players.
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Do they see themselves as a safe haven or as an opportunity to buy?
Strong support from mutual funds is one of the most important criteria when choosing a stock. However, IBD also recommends buying based not only on fundamental growth, but also on technicals and price trends.
That being said, only two of the Magnificent Seven stocks represent potential buys.
Nvidia stock, GOOGL nearby purchase points
The first is Nvidia, which is currently on a flat base with a buy point of 974. NVIDIA stock holds the highest possible score of 99 for Overall Rating and EPS Rating. Sales and profits increased over the past three quarters, a dramatic reversal of declines in the previous three quarters.
These buy points may not work as the market is under pressure. Breakouts are known to fail when market conditions are unfavorable, and this could happen with the Magnificent Seven stocks.
Another potential pickup is Google’s parent alphabet (GOOGL), is in a buy zone above the entry at 153.78. The relative strength line has recovered since the stock price recovered from its 200-day moving average.
Alphabet has an overall rating of 96 and an earnings per share rating of 98. Alphabet also reported increased sales and profits over the past three quarters.
Funds like Amazon, Microsoft, Meta, etc.
funds are delayed Amazon (AMZN) and microsoft (MSFT) Although they are above their 50-day moving average, these two companies are not near their base or buy points at this time. Microsoft is testing the 50-day line, but further signs of support are needed before the stock enters from that key level. Amazon is expanding, but there are no new locations in sight.
Another fund candidate is Facebook’s parent company Meta, which is in a buy range from its three-week entry at 488.62. However, the 3-week entry is best used as an add-on purchase and should only be a fraction of a full-size purchase of Meta stock. In today’s challenging market environment, this rule applies more than ever.
don’t buy the fund tesla (TSLA) and apple (AAPL). According to IBD MarketSurge’s chart analysis, both are trending down and below their 50-day lines.
In addition to Nvidia stock and the Magnificent Seven, the fund also bought the Dow Jones leader. JP Morgan Chase (JPM), Qualcomm (QCOM), Chipotle Mexican Grill (CMG) and copalt (CPRT).
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