This S&P 500 comeback stock could ride higher from here, traders agree

- Advertisement -
- Advertisement -
- Advertisement -
- Advertisement -

The S&P 500 has made a major comeback.

After hitting the lows of the sell-off on March 23, the benchmark index has rocketed 21% higher.

A handful of its stocks have led the charge — MGMCapriCotyNvidia and Halliburton have all soared off their March lows.

“When you look at these names I think that it makes sense they’re rolling off the lows. If you’re a long-term investor, I think it makes sense to get into them here,” Danielle Shay, director of options at Simpler Trading, told CNBC’s “Trading Nation” on Tuesday.

Only one has the best chance of outperforming from a trading perspective, though, she adds.

“I love the relative strength that we’ve seen with Nvidia. The chipmakers are incredibly strong, and it has an upcoming earnings report, and I think it’s going to continue trading higher into that report,” said Shay.

Nvidia is set to report earnings on May 7. Analysts surveyed by FactSet anticipate 90% earnings growth in its first quarter.

Todd Gordon, managing director of Ascent Wealth Partners, agrees with Shay, noting that Nvidia has both fundamental and technical tailwinds.

“It’s a leader in AI, data centers, all sorts, self-driving cars, cloud, gaming. It’s just unbelievable. From a technical point of view, [it’s] another stock that here in the weekly is holding the 50- and 200-week moving average. So, really good relative strength,” Gordon said during the same segment.

Gordon says the stock is now bumping up against a $300 target. On the daily chart, it is also holding above its 50- and 200-day moving average, he notes.

“There’s a big open interest at the $300 call strike next month in the May options, so watch that should  this market stabilize,” Gordon added.

Nvidia shares hit a low of $180.68 on March 18. Since then, they have risen 43%.

 

Home of Science
Follow me

- Advertisement -

Discover

Sponsor

Latest

Sir David Amess anniversary: Southend should go for City of Culture, says MPon October 15, 2022 at 12:02 am

The successor to Sir David Amess says Southend should seek City of Culture status in his honour.Image source, Rex/ShutterstockThe successor to murdered MP Sir...

Tom Grennan recovering after NYC attackon April 22, 2022 at 6:18 am

The singer was left with a torn ear drum after being attacked outside a bar in New York this week.Image source, ReutersUK singer Tom...

Super-smeller helps scientists develop test to spot Parkinson’son September 7, 2022 at 12:28 am

A woman who can detect Parkinson's through smell helps scientists develop a test for the disease.A woman who can detect Parkinson's through smell helps...

Andy Murray fights back to beat Max Purcell and reach last eight at Hall of Fame Openon July 13, 2022 at 8:30 pm

Andy Murray recovers from a set down to reach the quarter-finals of the Hall of Fame Open in Newport, Rhode Island.Andy Murray recovers from...

Europa League final: ‘Are gobsmacking Rangers unstoppable in Europe?’on May 6, 2022 at 11:15 am

Rangers have overcome the odds to become favourites to beat Eintracht Frankfurt in the Europa League final, writes Tom English.
Home of Science
Follow me