The stocks on the S&P 500 (SPY) that gained the most in 2023 are the usual top trades for today. Be cautious on the crowded trades for the magnificent seven.
Nvidia (NVDA), which gained 237% YTD, flashes a “double top” bearish signal at $501. Microsoft (MSFT), which trails Apple’s $3 trillion market cap at $2.78 trillion, is in the news today. On Wednesday, the New York Times (NYT) sued both Microsoft and OpenAI for copyright infringement. The paper accuses the two firms of illegally using its content to train artificial models.
Among the top-performing stocks, Tesla (TSLA) is in eighth place. It should widen its lead against other EV firms as its market share grows in 2024.
While Broadcom is #9 and Salesforce (CRM) is #10 on best performance, Intel (INTC) will surprise the bears. INTC stock is up 95.5% YTD after breaking out to above $50.76. The PC chip supplier did not release a good 14th-generation desktop processor. Fortunately, shareholders are betting Intel’s pivot to central servers to power AI solutions will justify its 27 times forward price-to-earnings ratio.
In the worst performance are SolarEdge (SEDG), -65.8% YTD, Enphase (ENPH) at -48%, and FMC at -47.9%. Moderna (MRNA) follows with -45.8%. MRNA stock already broke out after bottoming at $80. It closed at $100.73. $110 is the next resistance price at the simple moving average of 200 days.
Pfizer (PFE) might follow Moderna’s break-out. The firm already lowered its guidance, so investors have low expectations.
