Rather than a Santa Clause rally, in many large-cap stocks these days it’s like Santa has claws. But rather than stress over today’s unraveling of prices, it’s appreciably a better time to monitor some of those bears as bearing gifts.
You wouldn’t know it based on the price action of large-cap stock indexes such as the S&P 500 index or the Dow Jones Industrial Average. They’re up by seasonally sprite gains of 1.50% to 3.00% and just off record highs.
But elsewhere and even in many of the market’s most dominant brands and most familiar investments, a new wave of inflation worries and fears of a darker Covid winter have pummeled Wall Street’s seasonal bullish chorus.
The good news is fear has a way of turning into cheer on Wall Street. And when it comes to large-cap stocks tumbling out of favor, there’s a higher-than-average opportunity the next bullish act isn’t too far behind.
As much and in the spirit of giving, here are three large-cap stocks to buy offering big-time technical-based chart opportunities for your portfolio as we usher in the New Year.
Large-Cap Stocks to Buy: Tesla (TSLA)
The first of our large-cap stocks to buy, which may look like a bit of a car wreck at the moment. is Tesla. But don’t let the electric vehicle champ’s bearish market cycle spook you. (Nor should you get bent out of shape over Elon Musk’s “Person of the Year” status or his threats to leave the helm.)
The fact of the matter is all stocks correct, even the best of the best, like TSLA.
Source: Charts by TradingView
What’s more and in the wake of some unsustainable, over-the-top green shoots momentum and today’s smarter-looking price action, there’s every reason to be upbeat on a nearby and well-qualified technical purchase.
Currently TSLA stock is positioned in-between its 38% – 50% levels tied to its May low and nearing its prior cup resistance and former all-time-high.
Should the $900 area hold in this large-cap stock to buy, a confirmed pivot candlestick purchase could shape up as a bullish ‘W’ base entry.
But don’t dismiss TSLA shares if that pattern ultimately buckles under the pressure.
Bottomline, not every bullish price formation has a happy ending. Besides, there’s also trendline and deeper 62% Fibonacci support that stretches to around $800 in this large-cap stock to buy.
And should an oversold weekly stochastics indicator turn the corner for the better, there’s very good reason to take a test drive using a bull call spread or even ownership of TSLA stock with a collar strategy.
Cloudflare (NET)
The next of our hammered large-cap stocks to buy is Cloudflare. Wall Street’s recalibration of what’s acceptable risk — and what’s not — has sunk its bearish teeth into the cloud-based, security and software-as-a-service (SaaS) upstart.
If history is any indicator though, it won’t last. And when investors tire of being pessimistic, NET is well-positioned for buyers looking to buy growth at a discount.
Source: Charts by TradingView
A combination of huge growth and today’s slightly larger-than-average 42% bearish cycle are being further supported by a multi-layered challenge of Fibonacci levels within this large-cap stock’s uptrend.
Given NET’s significant monthly volatility, I’d propose watching the weekly chart for a bottoming candlestick to buy.
Alternatively, investors might consider monitoring the monthly chart for a bullish stochastics crossover rather than nailing down NET’s volatile price action.
Either way or whatever bells and whistles summon a buy decision, a hedged options strategy in lieu of a naked long position in NET shares makes for a smarter purchase.
Large-Cap Stocks to Buy: Bitcoin (BTC-USD)
Okay, so admittedly, the last of our slammed large-cap stocks ideas isn’t a stock. But as market capitalizations goes, Bitcoin’s $923 billion value is large cap.
Still. and as the crypto market’s largest digital asset and one that’s in the elite company of large-caps like TSLA stock or Meta Platforms (NASDAQ:FB), Bitcoin certainly has that going for it.
Source: Charts by TradingView
And while BTC hasn’t worked as a proclaimed safe haven, relative to cryptos or other risk assets for that matter, at least you can buy several lifetimes of pizza, right?
More positively, this large-cap stock to buy or, umm, coin to purchase, is once again approaching a point when BTC is a more worthwhile investment proposition.
Amid a fairly vicious bear market cycle of 39% in depth that’s shredded Bitcoin’s more reckless momentum crowd, BTC-USD has also entered a well-supported technical area for intermediate-term positioning.
At the moment, BTC still has some weekly work to perform before any buy decisions.
But should Fibonacci and trend support from around $36,000 – $44,000 continue to hold, a weekly bottoming candle alongside a bullish stochastics crossover, should produce some profitable pride in ownership for buyers of this large-cap titan next year and possibly beyond.
On the date of publication, Chris Tyler holds (either directly or indirectly) positions Grayscale Bitcoin Trust (GBTC). The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris Tyler is a former floor-based, derivatives market maker on the American and Pacific exchanges. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.
