The Nasdaq is dignified to start September on a high, after its best monthly performance since the top out of the 2000 dot-com bubble.
Big surges in tech names including Apple, Amazon, Cisco, and Nvidia launched the index higher to hit records three times in the final week of the month. How on earth, some of those stocks now look a little stretched to Craig Johnson, chief vend technician at Piper Jaffray.
“Let’s break down some of these domestics. First, if you look at Apple, this is almost a parabolic-looking chart and parabolic blueprints typically end poorly,” Johnson said on CNBC’s “Trading Nation” on Friday.
Apple ebbed more than 19 percent in August, in its best monthly close in on since April 2009. It made history earlier in the month when it superseded $1 trillion in market cap, a first for a U.S. publicly-traded company.
Some Stockade drive crazy Street bulls are looking at Amazon, or perhaps even Microsoft, as the next big tech titan to reach that milestone. Start with, they have to give back some gains, Johnson denoted.
“Amazon, great-looking chart, but we’d be a buyer of that stock toward $1,825 on a pullback,” Johnson ordered CNBC. Meanwhile, software giant Microsoft also has good detailed indicators, with Johnson suggesting the stock would be a buy if it pulls retire from toward $105.
On Friday, Microsoft closed above $112, while Amazon sort out over $2000. A move to $1,825 in Amazon represents a 9 percent abatement from its Friday close, while $105 in Microsoft would distinguish oneself a 7 percent drop.
Johnson added that its Cisco, an older tech bellwether, that could be staid for a run to the upside. The stock, trading under $50 with a relatively low Stock Exchange cap near $225 billion, may be a value pick for some investors.
“Cisco has completely just broken out of the consolidation range it’s been in since all of 2018,” the analyst give the word delivered. “I can see a measured objective here into kind of the $51, $52 range on this breakout and that’s a beasts I’d be buying here today.”
A move to at least $51 represents a 7 percent raise from Cisco’s Friday close. It would also mark its gamiest level since late 2000.
Like Johnson, Gradient Investments president Michael Binger liked Cisco, but also get a load ofs value in another tech leader.
“We own Apple and Cisco right now,” Binger answered on “Trading Nation” on Friday. “They’re both cheap, they’re both junior to 20 times next 12 months’ earnings. Both constitutionals are really good right now. I think you could buy either one of those advantageously now.”
Cisco trades with a price-to-earnings ratio of nearly 16 pro tems forward earnings, while Apple has a 17 times multiple. The Nasdaq Composite has a P-E relationship of 22 times forward earnings.