3 Nasdaq Stocks to Trade as Tech Plays Get Foggy

Nasdaq stocks - 3 Nasdaq Stocks to Trade as Tech Plays Get Foggy

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Risk-on. Risk-off. It happens to the best of them. Sometimes, even at the same time. And that goes for today’s top Nasdaq stocks.

Let’s look at three making the case for trading in an often fragmented market and where the price charts are of extreme importance to both bulls and bears.

Value versus growth. Long versus short. Yesterday’s winners. Today’s losers. It’s a game played daily and longer-term on Wall Street. And in 2021 it’s thrown a monkey wrench at more than a few tech stocks.

There’s once dearly-held Zoom Video (NASDAQ:ZM) or Snowflake (NYSE:SNOW) among others to confirm that point in spades.

ZOOM and SNOW? Some investors may point out those are special situations.

ZM stock had its fun. But today, pandemic-driven conference calls are once more being replaced by talk around the office cooler. And SNOW? Its nosebleed valuation was an accident waiting to happen, right? Incidentally, Snowflake may sport Nasdaq stock worthiness with its four-letter ticker and large-cap tech prowess, but that’s the NYSE’s listing problem.

  • Advanced Micro Devices (NASDAQ:AMD)
  • Cisco Systems (NASDAQ:CSCO)
  • MicroSectors FANG+ ETN (NYSEARCA:FNGS)

Hindsight of course is 20/20, but being nitpicky in an imperfect market where the lines and sometimes tickers are blurred will get you nowhere. That said, here are three slightly obscured bear, bull and grayer Nasdaq stocks for investors to ply their buy, sell and hedged trading orders with.

Nasdaq Stocks to Trade: Advanced Micro Devices (AMD)

Advanced Micro Devices (AMD) bearish head and shoulders
Source: Charts by TradingView

The first of our Nasdaq stocks to trade are shares of semiconductor outfit Advanced Micro Devices. Right now despite enjoying a recent standout earnings report, investors are having no part of it. The real or other bottom-line is a critical neckline as AMD stock sets up in a bearish head and shoulders topping pattern.

Technically and as the provided weekly chart shows, shares of this Nasdaq stock have already confirmed a bearish candlestick pivot high within the formation’s right shoulder. What’s more, stochastics has weakened alongside the ominous pattern’s own developing plotline.

If neckline support near $73.50 fails, look out below. A measured move could eventually find AMD near $50 and its former all-time-high from 2000.

I’d recommend buying an intermediate-term, out-of-the-money put spread on a neckline failure. Alternatively and for those that want to remain in it, to win it—a hedged collar on this rarer three-letter Nasdaq stock is solid advice.

Cisco (CSCO)

Cisco (CSCO) well-constructed handle within W base for buy decisions
Source: Charts by TradingView

Cisco Systems is the next of our Nasdaq stocks to trade. The diversified networking play is as venerable as they come in the tech-heavy index. Today, that staying power looks good for both income and capital gains as a purchase inside your portfolio.

Not unlike AMD’s once, more unique ticker, CSCO is also kinda sorta flawed in that way. It’s also a Dow Jones stock.

That may not raise an eyebrow on today’s younger Robinhood crowd as the lines have been blurred the past decade or so. But Cisco’s four-letter placement in the blue-chip bellwether would have been blasphemy earlier this century. Inclusion used to be strictly limited to NYSE-listed companies with tickers of one to three characters.

What’s not controversial is this Nasdaq stock’s price chart. It’s as bullish as they come. Today and as the illustrated weekly chart reveals, CSCO is forming a tight handle consolidation pattern high inside its corrective W or double-bottom style base.

Given Cisco’s stable and currently favored, value-driven ticker, this Nasdaq stock looks ready to go today as a purchase. In not wanting today’s well-constructed backtracking to turn into something more bearish, I’d recommend a July $52.50/$55 collar combination for positioning.

Nasdaq Stocks: NaMicroSectors FANG+ ETN (FNGS)

MicroSectors FANG+ ETN (FNGS) mirror bull and bear battle on weekly chart
Source: Charts by TradingView

The last of our Nasdaq stocks to trade may be the most blurred or flawed of them all. It’s the MicroSectors FANG+ ETN. FNGS isn’t just a Nasdaq stock, it’s a basket of 10 equally-weighted tech giants.

There’s Apple (NASDAQ:AAPL) and Alibaba (NYSE:BABA) to name a couple. Moreover, some are NYSE-listed and Dow blue-chips. FNGS is also listed on NYSEARCA and not Nasdaq. Sacrilege!

Today and making things a bit odder, FNGS price chart shows an equally convincing bull versus bear fight underway with no decisive winner.

For the bulls, FNGS shapes up as a potential high-level double-bottom. And as the pair of green arrows hints, a resolution to the upside certainly looks even stronger. At the same time, bears with their quiver of red arrows have nearly identical reasons for taking aim at this Nasdaq stock of sorts.

Right now, my advice also kinda sorta straddles the fence. I’d simply suggest playing a strong defense, and alongside your own market optimism or pessimistic outlook, I’d recommend using a limited and reduced risk hedged vertical or collar that’s always in favor, bear or bull, in this corner of the market.

Stocks owned: On the date of publication, Chris Tyler  holds, directly or indirectly, stock and derivative positions in Advanced Micro Devices (AMD), but no other securities mentioned in this article.

Chris Tyler is a former floor-based, derivatives market maker on the American and Pacific exchanges. The information offered is based on his professional experience but strictly intended for educational purposes only. Any use of this information is 100%  the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.


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