The S&P 500 was frustratingly close to a record high but failed to break that hurdle.
Still, several stocks managed to hit new highs this week, including ADP, Target, eBay, T-Mobile, and Nvidia.
Todd Gordon, founder of TradingAnalysis.com, told CNBC on Wednesday that one of these stocks should continue its hot streak due to a rotation back into technology.
“You’re seeing a rotation back into large, medium cap growth versus value, … and Nvidia is the game. This is obviously the greatest GPU and AI game out there, ”said Gordon at Trading Nation.
“We have been in a massive uptrend since 2015. We show no resistance until around $ 1,650. Nvidia is the second largest stock in my portfolio after Apple,” said Gordon.
Nvidia would have to climb more than 137% to reach Gordon’s goal. He said there was still an option to buy the stock in a short-term slump.
“We just broke out of the year-long range between around $ 650 and $ 500. … So if you have a withdrawal for $ 650, it’s for sale, ”he said.
Nvidia closed above $ 694 on Wednesday. A rise to $ 650 implies a 6% pullback.
Delano Saporu, founder of New Street Advisors, has his eyes on another record-breaking stock.
“I really like ADP here,” Saporu said in the same interview. “Their highest margin business, their employer service segment that will have a lot of tailwind with our expanding economy. We’re back on track. These are things that are doing well for … business.”
ADP’s employer services business accounts for 69% of total sales. According to analysts polled by FactSet, total revenue is expected to increase 9% for the quarter ended June.
“They give money back and reward shareholders with $ 1 billion in share buybacks. They also had dividends of about $ 1.5 billion. This is a company that I think is really strong,” said Saporu.
Disclosure: Gordon holds NVDA.
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