Although a Santa Claus rally failed to materialize, Magnificent Seven stocks Nvidia (NVDA), Meta Platforms (META) and Alphabet (GOOGL) kicked off 2025 with promise. All three artificial intelligence-fueled tech giants have secured a spot on IBD Leaderboard.
Meanwhile, fellow Mag 7 member Tesla (TSLA) has rung in the new year with a fresh rebound and a spot on the IBD Leaderboard watchlist.
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Meta Back In Play As Nvidia, Google Extend Gains
As the Nasdaq teases a return to the 20,000 mark, Nvidia and Google stock have climbed above and beyond their buy ranges. Both have shown resilience while generating breakouts from third- and fourth-stage chart patterns. Such formations entail more risk than first- and second-stage bases since they come after a stock has already made a substantial run.
Meta stock has returned to buy range after finding support at its 50-day moving average to start the new year. Like Nvidia and Google, Meta's latest setup is from a later-stage base. The Facebook, Instagram and WhatsApp parent trades within a 602.95-633.10 buy zone. Early Monday, Meta also moved back above its 21-day exponential moving average.
Since bolting out of a first-stage cup-with-handle base in October, Tesla stock soared to an all-time high last month before pulling back. After a string of declines to close out the year, the electric vehicle maker rose over 8% on Friday, although shares erased gains Monday at midday. See if Tesla can close the first session of the week above its 21-day line.
See Who Joins Nvidia, Meta And More On IBD Leaderboard
Nvidia Stock Leads Rise Amid Mixed Market Signals
As The Big Picture column pointed out on Friday, market breadth closed out the week strongly. Advancers outnumbered decliners by more than 3-to-1 on the NYSE and nearly 3-to-1 on the Nasdaq. The recommended market exposure level rose to 60%-80%.
As Nvidia, Meta, Google and Tesla show strength and the tech-heavy Nasdaq jumps around 1.8% Monday, investors should keep in mind rules for both how to buy stocks and when to sell stocks.
Since December, more stocks on both the NYSE and Nasdaq have been making new lows than new highs with the exception of a handful of days. Such action indicates bearish market breadth.
Plus, the number of distribution days is relatively high, with seven on the Nasdaq and six on the S&P 500.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
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