Here is your trade on $META $NVDA $AAPL and $MSFT – August 7, 2023
This is Dan Fitzpatrick with your Chart of the Day. Just a real quick video today on Meta ( NASDAQ: META ).
You can see all of the Mega Cap stocks that have been pulling the market up so high, like Apple ( NASDAQ: AAPL ), trading down. Microsoft ( NASDAQ: MSFT ) is not able to catch the 50. My sense is, this is probably the way the price is going to go, so far for the last couple of days I’ve been right about that.
Google, or Alphabet ( NASDAQ: GOOGL ), as they are now called, is doing okay. This could actually move higher. This is one of those stocks that people have been saying, it’s the Mega Caps that are pulling to market higher, and they have been, no question about it.
We’ve got Netflix ( NASDAQ: NFLX ), which has done really well. II broke out and peaked up here, and then has since been consolidating. But generally speaking, I think people are looking at some of these stocks and saying, Well, everybody is getting out of the Mega Caps and into something else.
I beg to differ, I think I would ditch this ( NASDAQ: AAPL ) in a heartbeat. Now, you could hang onto it and a year from now you could say Dan was wrong, but I am actually more concerned about next month or next quarter, so I would ditch this.
I would actually ditch Microsoft ( NASDAQ: MSFT ) because it is not able to get above the 50, or at least sell some of the position. But what I would not do is be ditching NVIDIA ( NASDAQ: NVDA ).
Even though it is drifting sideways the volume has generally been lower than average. We got one big sell day here last Wednesday, but it’s been doing okay, and they report earnings in a couple of weeks.
But the one that really looks the best, to me, is Meta ( NASDAQ: META ). It just continues to trickle right along the 20-day moving average, this little blue line here. And so the time to be buying this stock is on these little pullbacks, it is not really on the breakouts.
Yes, the breakouts have worked, you could say, Well this one worked. You know, you buy the stock there. Fine, it went up 6.5 percent over a week, something like that. But generally speaking, and by the way, it came back down.
But the time to be buying this stock is when it comes back here to the 20 and the 8-day exponential moving average, which is where it is right now. So if you are buying Meta ( NASDAQ: META ) you’re late, no question about it. But are you too late? I think you have got to let the stock tell you that.
The way to do that is to track it along this 20-day moving average. Track it here and track it along the 8-day moving average. The price needs to hold within this area. It doesn’t have to hold above the 8-day moving average exactly. But it really needs to not be going down much below the 20-day moving average unless it recovers right away.
The point is, this is a nice little pullback. This could give you an entry here. But again, it is a late entry and this would be more, in my view anyway, a sign not to sell the stock as you would be with Microsoft ( NASDAQ: MSFT ) or Apple ( NASDAQ: AAPL ).
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