Stocks Up, Nasdaq Leads; 4 Reasons Why Apple Is On Track For Strong Gains | Stock News & Stock Market Analysis

Apple (AAPL) helped boost the Nasdaq composite to new all-time highs and a mild gain. Merger fever in the semiconductor sector also helped lift the Nasdaq.

XAutoplay: On | OffApple, up 1.2% to 174.52 and new all-time highs, has now jumped more than 11% past an Aug. 2 breakout from a flat base with a 156.75 entry. The iPhone and iMac giant is also steadily gaining ground from its newest buy point, a cup with handle at 160.97.

The Nasdaq composite rallied 0.4%, while the Dow Jones industrial average and the S&P 500 notched gains of 0.1% to 0.2%. Strong rallies by certain computer and internet-oriented tech stocks offset sharp declines by stocks in the super market, medical services, medical supplies, drug store, automaker, gaming software, meat and other defensive food industry groups.

The S&P SmallCap 600 and the Russell 2000 both edged nearly 0.2% higher. Volume on the Nasdaq was mildly higher vs. the same time Friday and a touch lower on the NYSE.

Back to Apple, it’s important to remember that the best time to buy Apple over the past 12 months actually came in January, when the megacap name burst out of an excellent cup with handle.

That top-notch pattern, repeated time and time again by many of the greatest stock market winners in history, featured a 118.12 buy point. Since shares have already gained more than 45% from that proper entry, it obviously will be more challenging for Apple to rise another 20% from its latest proper entry points.

However, Apple has shown it can maintain conservative guidance, and over-deliver. Fiscal Q4 earnings jumped 24% to $2.07 a share, the best gain in eight quarters, on a 12% pick-up in revenue to $52.58 billion. And the Street thinks Apple can grow its earnings in the double digits for at least a fourth straight quarter (up 12% to $3.76 a share).

Three more reasons why the market bears shouldn’t knock Apple:

One, the up/down volume ratio in Apple’s Stock Checkup (a proprietary tool available only at is now back above the neutral 1.0 level.

Two, the RS line is hitting new high ground (see it in blue in IBD’s daily and weekly charts, and in MarketSmith).

Three, the Relative Price Strength Rating (different from the relative strength line) is approaching a nine-week high of 89.

Elsewhere, REIT stock American Tower (AMT) blasted more than 6% higher to 150.35 in heavy turnover and took out a new 148.81 buy point in a nine-week cup. Average daily volume is 2.08 million shares, and as of 3 p.m. ET turnover has already exceeded 2.9 million shares.

Please go to IBD’s New Highs column to read more about American Tower and other highly rated stocks rushing out of new bases and into new high ground.


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Originally posted 2017-11-07 06:53:03.


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