We examine NDX Stocks that have recently made or rallied to match all-time chart highs.
Domestic Equities have rallied to number 1 within the NDW DALI Asset Class Rankings on the back of a positive week for the asset class. The week began with Domestic Equities moving to number 2, but after picking up a signal from both Commodities and Cash following Thursday’s action, the asset class was able to climb to first. It is worth noting that this marks the third change to the number 1 asset class in two weeks’ time and the top three asset classes reside within three signals, so to say US equities have emerged as the true leader would be a bit premature. NDW acolytes will await further signal confirmation before making changes to current allocations to any of the three offensive assets.
Through Thursday’s close the seven major US Equity indices were up just shy of 3% on average, led by the Nasdaq-100 Index (NDX) up 3.80%. After initially marking a new all-time price high earlier this week - matching the point and figure trend chart high – Thursday’s action saw the index improve upon those highs and move to 22400 on the chart. This action brings the weekly distribution reading to its highest in just shy of 12 months near the top of the 10-week trading band. The further into overbought territory indices may move, the potential for a pullback or period of consolidation increases. While when and to what extent that pullback or consolidation may be, it would take a move below 21800 to see a reversal into a column of Os.
Given the Nasdaq-100 rallying to a new all-time high, the lists below highlight the roughly one-fifth of the underlying index holdings that currently trade at all-time chart highs or are within one box of chart highs. Like the Index itself, some of the stocks shown trade in overbought territory (Weekly OBOS (%) > 70%) so those seeking exposure to these positions are best served by looking for a pullback or price consolidation into a more actionable range within the 10-week trading band (i.e. Weekly Distribution (OBOS)).
Two of the stocks that are currently actionable even at all-time chart highs are Take-Two Interactive Software (TTWO) and Palantir (PLTR). Both stocks are 5 for 5’ers and have maintained buy signals since the first half of April.
TTWO has traded in a positive trend on its point and figure trend chart since August 2024. The stock has possessed long-term relative strength against the market and peer group for more than 18 months while currently ranking within the top quintile of the Leisure sector matrix. After giving a fourth buy signal and high at $244 earlier this week, TTWO is actionable here at highs or on a pullback to the upper $220 range. Initial support lies at $220, while additional may be found in a stair-stepping fashion between $198 and the lower $210s.
PLTR moved back into a positive trend shortly after returning to a buy signal in April and this week kicked off with a eighth consecutive upon the break at $146. The stock has possessed long-term relative strength against the market and peer group for more than 2 years and currently ranks within the top decile of the Software sector matrix. Intraday action Friday brought the trend chart back into a column of Os and an actionable price range as the stock fell to $138. Initial support lies in the mid $130s, while additional may be found at $120.
