Tech stocks Tesla, Microsoft and Nvidia have taken a hit since hitting highs at the end of last year. Meanwhile, CF Industries, Cheniere Energy and Union Pacific have flourished in this stock market correction.
The names currently on IBD Leaderboard reflect the sector rotation and shifts of recent months. Despite recent troubles, Tesla stock, MSFT and NVDA remain on Leaderboard, alongside Cheniere, Union Pacific and others in the energy, materials, transportation, health care and non-tech sectors.
In a move to lock in gains and sell into strength, CF Industries came off IBD Leaderboard this morning. While not technically flashing a climax top, the chemicals stock was going vertical as it broke an upper channel line, giving investors a chance to lock in profits in a volatile market.
Cheniere Energy is extended beyond its 113.50 buy point.
See Who Joins Tesla And Nvidia On IBD Leaderboard
As Tesla Stalls, Union Pacific And Vertex Roll On
As the action in Tesla, Microsoft and Nvidia makes clear, worries over the Russia-Ukraine conflict, rising inflation and a possible recession have rattled the stock market indexes. It's a time of volatility where the focus has shifted from new profits to protecting gains and avoiding serious losses.
Among the few bright spots you'll find railroad giant Union Pacific. UNP stock has laid down several days of strong volume as it cleared a 256.21 buy point. Its relative strength line has bolted out to a new 52-week high. The stock is in a buy zone that extends to 269.02. But even Union Pacific has hit resistance, reversing Monday after hitting a new high earlier in the session.
Meanwhile, biotech Vertex Pharmaceuticals has bounced off its 50-day line with its RS line at a new high. The IBD 50 stock also just cleared a first-stage bottoming base.
Since November, Vertex has flashed multiple instances of nice gains in above-average volume — a positive sign of demand. Keep an eye out for potential resistance in the 240-260 price range. Vertex hit such resistance Monday, reversing to close at the bottom of its price range.
Also continue to track Tesla, Nvidia and Microsoft to see if they can reclaim their its 200-day moving average lines.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
