After leading the latest list of new buys by the best mutual funds earlier this month, Apple has now earned a spot on the IBD Breakout Stocks Index. AAPL stock has just cleared a new buy point as the stock market indexes looks to build on a new uptrend.
In this month's report on new investments by leading money managers, top funds scooped up an estimated $2.4 billion worth of Apple shares. That dwarfed impressive investments in fellow tech titans Nvidia ($1.5 billion) and Microsoft ($972 million), which just missed a seat at the billion-dollar table. Alphabet took in a more modest $334 million.
On March 8, Apple introduced a cheaper 5G iPhone, as well as a high-end Mac computer for creative professionals. At Sunday night's Academy Awards, Apple's "CODA" won for Best Picture, Best Supporting Actor, and Best Adapted Screenplay. Star Troy Kotsur became the first deaf male actor to win an Oscar.
And in a different role, Apple recently announced that Arizona is the first state to offer driver's licenses and state ID in Apple Wallet. Additional states to follow include Colorado, Hawaii, Mississippi and Ohio. In a recent survey by IBD and TechnoMetrica, Apple Wallet received top honors for the best overall customer experience for digital wallets.
Last week, Google, a unit of Alphabet, announced it will allow alternate payments systems in Google Play. Analysts say that will put pressure on Apple to make similar changes to its App Store.
Who Joins AAPL Stock On The IBD Breakout Stocks Index?
Apple Tests New Buy Zone
Reflecting the volatility seen in this year's stock market, Apple has formed a double-bottom pattern. The buy point is 176.75, Marking eleven consecutive up days of trading, AAPL stock topped that entry on Tuesday. The stock gained just under 2% in average but rising volume. Apple ended its winning streak Wednesday, slipping under 1% in below-average volume to close right around the buy point.
As noted in The Big Picture on Tuesday, Apple's breakout was the first among major tech stocks since the March 16 follow-through day marked a change in market trend.
On a weekly chart, the relative strength line has already hit a 52-week high ahead as Apple breaks out.
Showing that tech stocks have started to rebound since the follow-through day, GOOGL, MSFT and NVDA stock are all flashing signs of renewed strength. All three stocks have reclaimed their 50-day moving averages, although the 50-day line remains below the 200-day benchmark for Alphabet and Microsoft. Look for that to reverse to show improved technical strength.
While Alphabet, Microsoft, Nvidia and Apple all slipped Wednesday, see if Apple can start a new winning streak and dial in a continued climb.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to essentially invest in the entire index in addition to or rather than buying the individual stocks. Learn more here about the ETF and Innovator funds.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
