The market has rebounded, but where does that leave so-called MAGA stocks? That depends. For investors digging into one of today’s most famous acronyms, that includes opportunities to exploit in key large-cap tech stocks to buy. Let me explain.
To be upfront, I’m not part of Trump Nation. From the get-go the “Make America Great Again” slogan, known as MAGA, has been a disturbing message in its confrontational innuendos. But here on the stock market, MAGA has another meaning as an acronym for four great stocks to buy: Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Google (NASDAQ:GOOG,GOOGL), and Amazon (NASDAQ:AMZN).
When it comes to investing and stocks to trade, unlike the President, I appreciate the very real disconnect which can occur between stocks and the economy. But don’t tell Trump that.
Trillions of dollars pumped into the stock market to combat the novel coronavirus has bullish algorithms working overtime and portfolio managers chasing performance. But just because the major indices have retraced the bulk of their Covid-19 bear market losses should never be a bragging point. Sadly, it has for Trump. Moreover, when crippling unemployment is still a very real part of many people’s day-to-day lives, that kind of narrow-minded bravado is even more morally corrupt than usual.
But Trump’s view on the stock market isn’t entirely misguided. And that’s where another kind of MAGA awareness makes a good deal of sense and even opportunity in select stocks to trade.
Shortly before Covid-19 decimated Wall Street in February, Trump was seen praising what was to be a very short-lived ‘trillion $ club’ of Microsoft, Apple, Google and Amazon. He was happy about the continued success of those industry titans under his watch, but POTUS was simply over-the-moon when he realized, like a child with blocks, MAGA could be spelled with the first letter of each company.
- Microsoft
- Apple
- Google/Alphabet
- Amazon
We’re not quite back to Trump’s ownership of MAGA. Still, these always-influential stocks to trade are in position on the price charts right now for investors to take on their own kind of profitable ownership and maybe help with prosperity for America.
Microsoft (MSFT)
Source: Charts by TradingView
The first of these stocks to buy are shares of Microsoft. And the ‘M’ in MAGA is a buy. Currently the stock is closing in on a promising handle consolidation purchase within its steeper, but well-supported cup-shaped base. With a history of stochastics remaining in overbought territory, a newly-formed bullish crossover bodes well for a momentum style breakout from the smaller congestion pattern.
This stock to trade is a MAGA stock to buy through $186.99, which should quickly improve its current market capitalization of $1.4 trillion. I’d suggest a 7% stop-loss beneath $174, which looks like smart business off and on the price chart.
Apple (AAPL)
Source: Charts by TradingView
The next of our MAGA stocks to buy is Apple. Right now the market’s largest capitalization company is also one to buy. Following Friday’s monthly jobs report, shares are narrowly breaking out to fresh all-time-highs from its similar and well-supported corrective base.
Technical leadership aside, like Microsoft, attention to money management is imperative. In our estimation, a tighter initial stop-loss of 4% looks like enough leeway. And if this momentum entry does cooperate in the coming days, taking initial profits around 7% above current prices at $350 looks equally good.
Alphabet (GOOG,GOOGL)
Source: Charts by TradingView
Alphabet and the company formerly known as just Google is the ‘G’ in MAGA. Google is setting up like a pea in a pod with Microsoft. After launching higher from a near perfect test of long-term trend line and Fibonacci support, shares have consolidated in a well-positioned handle pattern.
With a bullish stochastics crossover inside neutral territory, today’s $975 billion market cap stands an even stronger chance of reclaiming, once and for all, it’s place in Trump’s ‘trillion $ club.’
This stock to trade is one to own above the handle high of $1,449.01. Set a stop beneath $1,400 for multiple good reasons and cheer on a more inclusive brand of MAGA.
Amazon (AMZN)
Source: Charts by TradingView
The last of our MAGA stocks to buy is Amazon. Today’s jobs-related bid in the broader market hasn’t translated into enthusiasm for the $1.22 trillion sprawling tech behemoth. Nevertheless, throughout 2020 Amazon has maintained its leadership qualities. Is that really a surprise? Of all four MAGA stocks, Amazon is the one which price momentum can most reasonably continue in the face of obvious overbought conditions.
My advice for Amazon is to take ownership of this MAGA stock above its choppy consolidation high of $2,525.45 as new highs are captured. The other suggestion is to not find yourself holding the bag if momentum flakes out.
Use a stop beneath $2,324. That works out to a hair under 8%, an exit just below a weekly hammer and unquestionable good reasons to put down the rally flag in this stock to buy.
Investment accounts under Christopher Tyler’s management does not own any securities mentioned in this article. The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.
