Connect with us

Hi, what are you looking for?


NASDAQ Breaks Out Again; 2 Stocks To Consider NOW

U.S. equities are wrapping up the first quarter in grand style. The QQQ, which tracks the NASDAQ 100, is zeroing in on a 20% gain for the quarter, as I write this. We saw a huge rally in January 2023 and strong Januarys usually suggest a strong year ahead. Based on our Q1 performance, it’d be hard to argue at this point. There’s more technical work ahead, which is to be expected after the completion of a cyclical bear market. If you follow the “20% rule”, then the QQQ is now in a bull market, having moved up more than 20% from its low of 253.26 on October 13, 2022. That confirms the end of the 2022 bear market for the NASDAQ.

So, for now, let’s assume the worst is behind us and we’ll be looking at higher prices ahead. What stocks might we consider buying and why? Here are two that I like: (AMZN)

If the stock market does well this year, it’ll likely be due to the Fed hitting the brakes on interest rate hikes, promptly a lower 10-year treasury yield ($TNX) in the process. In that type of environment, I believe growth stocks will be where most of the leadership resides. (AMZN) certainly fits the bill. Technically, AMZN just broke out of a bullish inverse head & shoulders continuation pattern and broadline retailers ($DJUSRB) are finally showing relative strength:

There are a lot of positives here. Nothing has been confirmed yet, in terms of relative strength, but the improvement in 2023 is rather obvious. The February absolute and relative highs are key target levels. Moves above the February high would be extremely bullish.

ServiceNow (NOW)

NOW is breaking out of a similar bullish pattern, clearing key overhead price resistance. But does it sustain the move through today’s close? That’ll be what I’m watching, because if it does, I could see a nice run back to that February high. To the downside, NOW held up in the support zone between price and gap support and is “NOW” poised to run:

Average volume on NOW is 1.58 million over the past 50 trading days. Today’s volume is over 800,000 in the first 90 minutes, so we’re seeing confirming volume. It’s fairly simple – either today is going to be a meaningful breakout or it’s going to be a false breakout. It just depends on where we close. NOW was leading the software group ($DJUSSW) higher in January. It’s lagged badly during its recent consolidation, but the NOW relative strength line has begun turning higher again (blue circle) and a breakout could trigger much further relative strength ahead.

I’ll be hosting our latest market outlook on Saturday, April 15th at 10:00am ET. If you’re unsure of the bull vs. bear market debate and where we currently stand, mark your calendar for our event. It’ll be very educational and open to the public. We will be sending out invites to our entire FREE EB Digest community, along with our members. Simply CLICK HERE and sign up with your name and email to save your spot!

Happy trading!


    You May Also Like


    Kyle Larson spent the week watching videos of his 10-win, 2021 championship season, he said, “to remind myself that I used to be good.”...


    Jarrett Payton is looking for the heroes who saved his son’s life. The former Miami Hurricanes running back and son of Pro Football Hall of...


    The Formula One season kicked off Sunday in Bahrain, and it was smooth sailing for Red Bull Racing and Max Verstappen. The 25-year-old Dutch star...


    The three announced Republican 2024 presidential candidates weighed in over the weekend on the shocking collapse of Silicon Valley Bank (SVB). Former President Donald...

    Disclaimer:, 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 © 2023 | All Rights Reserved