Welcome to the billion-dollar club. The latest list of new buys by the best mutual funds shows that Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA) and Alphabet (GOOGL) each took in at least $1 billion from top-performing institutional investors.
Salesforce.com (CRM) and Arista Networks (ANET) also joined that exclusive club. Netflix (NFLX), hauling in an estimated $912 million, and Pfizer (PFE), attracting $809 million, came up just short of a full membership.
New Buys Admits New Entrants
Will The Best Mutual Funds Help Tech Stocks Weather The Storm?
Want to see what the best mutual funds are buying and selling? The most immediate way to gauge that is with stock charts, watching the price and volume action to track support and resistance at key moving averages. That is particularly crucial when the stock market trend is under pressure and it’s unclear if we will return to a solid uptrend or slip into a stock market correction.
While you want to proceed with caution during uncertain, volatile periods like we are in now, it does not mean you need to sell everything. You can use a buying checklist and selling checklist to help see whether to buy, sell or hold individual stocks.
The current action in Apple, Nvidia and Microsoft provides timely examples.
AAPL stock broke out on Nov. 17 and rose more than 5% to become extended from its buy zone by Nov. 22. Since then, Apple has become more volatile, bouncing in and out of buy range on the daily chart. But if you look at the weekly chart, which offers a longer-term perspective, the move looks more controlled.
While the stock market indexes and AAPL stock are not out of the woods just yet, the king of Cupertino, California, remains above its 10-week line and near an all-time high.
Nvidia broke out and bolted higher at the end of October. Despite the trouble in the overall market, it has held on to the bulk of its gains and has found support at its 21-day moving average.
Microsoft also broke out in October and continued to climb. While the cloud computing and software giant has run into resistance around the 330 to 340 mark, it also remains above its 50-day line. But MSFT stock is trading below its 21-day line, so look for it to retake that shorter-term moving average.
As you keep an eye on stock market trends and the action of individual stocks, pay close attention to the volume and price changes at these moving averages. That will show you if the best mutual funds and other large investors are buying or selling, and how aggressive they are being in either direction.
You’ll find that is the best way to keep both the hype and the hysteria in context.
How To Read Buys & Sells By The Best Mutual Funds
Ever wonder if managers of the best mutual funds know something you don’t? Would you like an early signal showing when institutional investors — especially the best ones — are getting in or out of certain stocks? New Buys Of Top-Performing Stock Funds and Top Funds’ Latest Sells provide just that. Use the PDF and Excel files to see when companies like Alphabet and Nvidia are in demand with large investors.
Updated each month, the New Buys list includes only new buys of the top 30% of stock funds ranked by 36-month performance. Companies are sorted by the highest combined Earnings Per Share (EPS) and Relative Price Strength (RS) Ratings. The number of top-performing funds that bought the stock in the latest reporting period is given.
As seen in the links above to the PDF and Excel files, the Total Mil$ Invested column shows the amount of money, in millions, the funds put into each stock. The column reflects both new positions and additions to existing ones. Prices, EPS and RS Ratings, and P/E are from the month-end close.
The Latest Sells list tallies the number of top-performing funds that were net sellers of each stock in the fund’s latest reporting period. Because some funds bought the same stocks sold by others, we also looked at the total number of buyers of each stock.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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