• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Growth Stocks Roar Into The New Year. This FAANMG Stock Is Poised To Go Higher
Stock

Growth Stocks Roar Into The New Year. This FAANMG Stock Is Poised To Go Higher

by February 4, 2023
by February 4, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

The Nasdaq just booked its fifth consecutive weekly gain, which is the longest winning streak in over a year. The rally has occurred amid strong earnings reports from some major tech companies. Also driving this Index higher is bottom fishing among investors, who are looking for quality Software and Retail stocks that were crushed during a period of rising interest rates last year. Rising interest rates are a negative for Growth stocks, as they lower the value of future earnings.

DAILY CHART OF NASDAQ ($COMPQ) VS YIELD ON THE 10-YEAR TREASURY ($TNX)

Subscribers to my MEM Edge Report were alerted to a bullish turnaround in the Nasdaq after this Index posted a follow-through day in early January. This unique occurrence signaled a near-term bottom in the markets, and recent price action has further strengthened our conviction that the markets are headed higher from here.

One of many reasons for my positive bias for the markets is last week’s sharp gain in Meta Platforms (META), which took place after the company announced better-than-expected results while also speaking positively about their growth prospects for 2023. The stock gapped up 23% on the news, as well the announcement of a huge share buyback program.

Gaps up in the price of mega-cap Growth stocks is not very common, and the huge volume that accompanied last week’s rally points to a stock that’s under accumulation. In fact, the last time META posted this sharp of a gain on heavy volume was in July of 2013, after the company posted much better-than-expected mobile ad sales numbers.  Below is a chart of the company at that time and, as you can see, the gap up into a base breakout marked the beginning of a 59% gain before Facebook formed a secondary base.

DAILY CHART OF META PLATFORMS (META) IN 2012-2013

While market conditions in July of 2013 were much different from now, the fact remains that gaps up in price into a base breakout are one of the most powerful base formations, as they often lead to greater gains.

As you can see in the chart above, META’s RSI remained in an overbought position for several months in 2013 before pulling back. Also of note is the continued high volume, which took place after the initial gap up in price. This is critical price action in the beginning stage of the stock’s advance, as it points to high demand which can sustain a more prolonged advance. Next week’s price action in META will help determine its ability to climb higher from here.

DAILY CHART OF META PLATFORMS, INC. (META) INTO FRIDAY’S CLOSE

Going forward, another signal that the current uptrend in META still in place will be a bullish position of both the RSI and MACD going forward. This would mean that they remain above 50 for the RSI and above zero for the MACD. Most important will be a bullish backdrop for the broader markets, which are currently in an uptrend, as market conditions will drive investor sentiment regarding underlying stocks.

If you’d like to be kept up to the minute on market conditions, as well as have access to the winning Growth stocks on my Suggested Holdings List, use this link to receive immediate access to my twice-weekly MEM Edge Report. Last week, a key sector entered a downtrend which we highlighted in yesterday’s Thursday Alert report, and you can uncover this as well.

It’s an exciting time to be investing given the strength in the current market uptrend. Use the link above so you can confidently take advantage of the bullish shift in the markets!

Warmly,

Mary Ellen McGonagle – MEM Investment Research (powered by Simpler Trading)

You Might Also Like
  • What FIRST STEPS You Need to Take When Things Get “Iffy”
  • Compression-Based Swing Trading
  • Elevate Your Options Trading!
  • Secular Trends Contrasted with Deterioration
Share
0
FacebookTwitterPinterestWhatsapp

previous post
MEM TV: Major Market Shift After Fed Comments
next post
New Dow Theory Declares Bullish Phase

You may also like

NVDA at a Crossroads: Decoding the Signals From Atop a...

March 30, 2023

Three ETFs Showing Renewed Strength

April 1, 2023

DP Trading Room: This is the ONLY Sector Showing STRENGTH...

October 2, 2023

Retail and Regional Banks Will Call the Shots

March 7, 2023

Ready, Set, COVER! Breakouts Are A Short Seller’s Worst Enemy

January 28, 2023

How to Buy WINNERS When They Pull Back!

December 14, 2024

Why You NEED to Be Practicing Evidence-Based Investing

August 22, 2023

New US Tariffs and Intensifying US–China Trade War: Economic Implications...

April 12, 2025

Week Ahead: Expect Markets To Trade With Positive Bias So...

January 16, 2023

Stock Market Starts December On A Strong Note: What This...

December 2, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,631 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Useful Directional Indicator Criteria for Your...

    December 7, 2023

    Managing Fear and Expectations

    March 23, 2023

    MarketCarpets Secrets: How to Spot Winning...

    November 18, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here