Markets closed strong last week due to increased signs of the economy’s inflation cooling off and strengthening hopes that the Fed might slow down with its very aggressive interest rate hike.
The S&P ended at a 3.48% gain and slightly gained its performance for the year. The energy sector was leading the pack and Consumer Discretionary Sector, and Real Estate both closed in for last week while the Dow Jones Industrial Index was only able to end the week with a 1.18% return.
| Index | Last | YTD | 1 Week |
| S&P 500 | 4050.83 | 7.03 | 3.48 |
| S&P 500 Energy | 630.8998 | -5.57 | 6.17 |
| S&P 500 Materials | 500.0542 | 3.75 | 4.93 |
| S&P 500 Industrials | 845.4726 | 3.03 | 4.40 |
| S&P 500 Consumer Discretionary | 1134.3016 | 15.76 | 5.58 |
| S&P 500 Consumer Staples | 773.9259 | 0.16 | 2.50 |
| S&P 500 Health Care | 1493.9554 | -4.72 | 1.76 |
| S&P 500 Financials | 529.192 | -6.05 | 3.74 |
| S&P 500 Information Tech | 2600.856 | 21.49 | 3.41 |
| S&P 500 Consumer Services | 187.6296 | 20.18 | 1.46 |
| S&P 500 Utilities | 341.4153 | -4.04 | 3.05 |
| S&P 500 Real Estate | 229.7635 | 1.04 | 5.16 |
| S&P Dividend Aristocrats | 749.81 | 1.62 | 4.08 |
| Dow Jones Industrial Average | 32237.53 | -1.36 | 1.18 |
Market Moving News
Indices jump after slower inflation data – Major indices like S&P and Dow Jones rallied with inflation data showing signs of slowing down. This strengthened investors’ hopes of a pivot on the Federal Reserve’s aggressive interest rate hikes.
Signature Bank and Silicon Valley Bank portfolios are to be liquidated according to sources – According to sources, the Federal Deposit Insurance Corporation (FDIC) has retained advisers to sell the securities portfolios of Silicon Valley Bank and Signature Bank that the new owners rejected. The portfolios are composed of low-yielding assets, such as US government agency-backed securities and Treasuries that the two regional banks amassed while interest rates were close to zero.
New US EV tax credit rules by April 18 – The rules are aimed at slowly lightening the United States’ dependence on China for EV battery supply chains. This new ruling is to help President Joe Bidens’ plan to make 50% of U.S. new vehicle sales by 2030 EVs or plug-in hybrids.
Earnings, a make or break moment for U.S. bank shares – with quarterly results coming this month, strategist says that upcoming earnings releases can help provide the current picture of the Finance sector’s health as regional players in the sector have been severely affected.
Week Ahead
Earnings Season – starting this week, companies will start reporting earnings which will guide investors on which companies have been weathering this long economic downturn and whom they should keep their eyes on. However, wary investors still fear the vulnerability of the stock market and think that most of the market still hasn’t priced in a possible recession.
Economic Releases – ISM, non-Manufacturing PMI, non-farm payrolls, and The S&P Global Composite and Services PMI are scheduled for release this week.
Top 10 Large Cap YTD Leaders in The IT Sector
With the recent recovery of the market, the IT sector is still the strongest in the market with the sector index having a 21.49% return year to date. With the sector being the most outperforming industry in the market this year, one would wonder if there is still a chance to get in on these high-performing companies. And if so, where should investors start? Any investor looking at adding strong companies to their portfolio should consider the business size.
The market cap allows any investor to gauge if a company is simply growing or standing alongside industry giants. As a start, investors can look at Large-cap companies to understand the players and their current leaders. Now, let’s look at the top 10 Large Cap leaders in the IT sector.
Nvidia mCorp (NVDA)
YTD Perforance: 90.07%
Analyst Rating: Strong Buy
Should you buy it?
Nvidia’s chart shows it’s currently near its last year’s March high of $289.46 and RSI is currently in oversold conditions at 72.69. Investors wanting to get into NVIDIA can either wait for a breakout and confirmation or wait for the retest of the resistance and retracement to immediate support at the $224 area. Investors should also note that with the current trajectory and nature of the RSI condition, a potential RSI divergence is a possibility.
Samsara Inc (IOT)
YTD Performance:58.65%
Analyst Rating: Moderate Buy
Should you buy it?
Samsara is currently trading in a narrow range between $17.51 – $21.58. RSI has retested the neutral area and bounced back up, and is gaining momentum. Investors wanting to buy into IOT may wait for the retest of the immediate support or wait for a breakout and confirmation for a follow-through of its resistance at $25.42.
Advanced Micro Devices (AMD)
YTD performance: 51.32%
Analyst recommendation: Moderate Buy
Should you buy it?
AMD just tested its strong resistance area around the $100.00-$102.00 range. RSI is starting to show signs of a divergence on the overbought area and followed through with a few days of selling. Currently, prices are starting to form a descending triangle. Investors who want to buy into AMD may look at waiting for the breakout or aggressively buying the immediate support. However, should investors plan to be aggressive, proper stop loss and risk management are always recommended.
Salesforce (CRM)
YTD performance:50.68%
Analyst rating: Moderate Buy
Should you buy it?
CRM just broke out of its immediate resistance at $194.35 and is continuing its uptrend. Its RSI reading also invalidated the previous divergence by going back up to its overbought status and breaking above the previous RSI peak. Investors who wish to buy into CRM can approach it 2 ways, buy into the retest of the resistance turned support or buy aggressively on an intraday continuation pattern like triangles, flags, etc.
Hubspot Inc. (HUBS)
YTD performance:48.29%
Analyst Rating:Strong Buy
Should you buy it?
HUBS successfully broke out of its resistance around the $411.00 area and is currently gaining momentum. RSI reading is showing it’s going near its overbought area without any signs of slowing down. Investors who wish to buy into HUBS can look at buying into the retest of its immediate support or buy into continuation patterns like flags, triangles, etc. found in intraday charts for the follow-through of the momentum.
Lattice Semiconductor Corporation (LSCC)
YTD performance:47.19%
Analyst rating: Strong Buy
Should you buy it?
LSCC is currently trading in an upward-sloping channel. Prices are near the psychological resistance of $100.00 which can pose a chance to buy on retracement on the lower channel or a bounce on the SMA. Previous RSI divergence has also been invalidated as prices broke out of the contracting RSI reading.
First Solar Inc. (FSLR)
YTD performance:45.02%
Analyst rating: Moderate Buy
Should you buy it?
FSLR is currently in a strong uptrend and is respecting its current upward-sloping trendline. Currently, it is trying to break out from an ascending triangle which can potentially give another push for breakout traders to step in. Investors willing to buy into FSLR can either buy on the breakout or buy after the breakout and consolidation retest.
Palo Alto Networks (PANW)
YTD Performance: 43.14%
Analyst ratings: Strong Buy
Should you buy it?
PANW just broke out of this tight range and is trading above its resistance at around $192.93. It also invalidated the previous RSI divergence by breaking out of the contracting range of the RSI. Investors looking to buy into PANW can either buy on the retest or wait for continuation patterns to form an intraday for an entry.
Monolith Power Systems (MPWR)
YTD performance:41.55%
Analyst Rating: Strong Buy
Should you buy it?
MPWR is currently trading in a consolidating flag pattern and is at the top area of the trendline which suggests a potential breakout. RSI reading also shows us a contracting momentum that is usually a sign of a near breakout or breakdown from consolidation. Investors who want to take advantage of this pattern can look at either buying the breakout or waiting for the breakout and retesting for confirmation of a confirmed breakout.
Arista Network (ANET)
YTD Performance: 38.33%
Analyst rating: Moderate Buy
Should you buy it?
ANET is currently trading around its long-term trend channel resistance and is currently consolidating around the $160.00 area. No significant pattern or signs of a potential breakout yet. Investors willing to buy into ANET should wait for clearer signs of direction as its RSI just came from an oversold reading and may further develop a bearish signal like a divergence.
Final Thoughts
Buying into companies with momentum is one of the ways traders and investors can make the most of the company’s performance for the short term. However, investors should also understand that momentum breakouts can fail and may lead to losses. Due diligence and proper risk management are always suggested to ensure that losses are managed.
This article Top 10 Large Cap YTD Leaders in The Tech Sector originally appeared on Rick Orford – Invest, Earn More Income & Save Money.
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.
This article originally appeared here and was republished with permission.
