As always, none of this is a recommendation to buy any of the stocks I’m going to discuss – everyone must invest based upon their own risk tolerance and if you’re not a registered agent, then you might want to seek professional advice.
2014 has been a bit frustrating for swing traders. The large caps have moved sideways for the most part, while the higher beta stocks have seen a bit more of a sell off. I believe that’s because they are on a different, more bullish count than the large caps. Now this flies in the face of what just about everyone on the Internet and TV is saying about the Nasdaq and RUSSELL. But as I look at my Nasdaq wave count and compare it with some of the largest weighted stocks in that index in the Alphahorn Swing System, I can’t help but be bullish for the Nasdaq.
I personally only own AAPL and have owned it for several months, but might look to add one or more of these names, but then again I might not. I am of course long the Nasdaq via QLD and the RUSSELL via TNA. So here’s a quick look at AAPL #1 weighted Nasdaq stock, GOOGL #3, AMZN #4, AMGN #10, and BIDU (not sure where it’s ranked). Obviously, this is only a selective group of names albeit some of the heaviest weighted in the index, but in my eyes they tell a similar bullish story as the Nasdaq index. Here’s what I’m seeing, several have either just signaled BUY/LONGs, and the stops placement should be obvious: