Top Funds Bet Over $1 Billion On Five Stocks, Including

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While investors’ interest in the latest iPhone announcements may be waning, the best mutual funds have not lost their appetite for Apple (AAPL). AAPL stock joins Exxon Mobil (XOM), UnitedHealth (UNH), and Eli Lilly (LLY) among five stocks raking in over $1 billion in IBD’s latest list of new buys by top money managers. In a hint that tech stocks like Apple are finding favor again after a long exile in this year’s bear market, Nasdaq (NDAQ) garnered over $1.9 billion this month.

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Medical and energy stocks dominated the big buys by the best mutual funds.

In addition to ExxonMobil, EOG Resources (EOG), ConocoPhillips (COP) and NextEra Energy (NEE) each took in over $500 million in the latest report.

On the medical front, Merck (MCK) ($971 million), Vertex Pharmaceuticals (VRTX) ($968 million), Elevance Health (ELV) ($818 million) also showed strong demand alongside UnitedHealth and Eli Lilly.

With inflation putting pressure on household budgets, the best mutual funds also scooped up roughly $630 million worth of shares in discount retailer Dollar General (DG).

Note: Be sure to check these Excel files, updated and published each month, to see all the stocks on the latest list of new buys and list of new sells by the best mutual funds.

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Support Vs. Resistance In New Buys By The Best Mutual Funds

Navigating choppy, uncertain markets is no easy task. To keep daily and weekly price fluctuations in perspective, track the action around key moving averages like the 50-day and 10-week lines.

Also see if these moving averages are trending higher or lower. Plus, are the shorter-term averages — such as the 50-day line — above or below the longer-term lines like the 200-day moving average? It is a sign of rebounding technical strength when shorter-term moving averages climb back above their longer-term cousins.

Take Apple stock as an example. Since January, the stock has run into resistance around the 180 range multiple times. It now trades below its 200-day line. Apple’s 50-day line is below the 200-day moving average, but it is trending higher and close to retaking the longer-term line.

As the market indexes rallied again Friday, AAPL stock rose nearly 2%, although volume was light.

As tech stocks took a hit this year, Nasdaq, which serves the capital markets financial data, encountered volatile selling pressure. Its 10-week moving average began trending lower until starting to reverse in July. The 10-week line is now retaking its 40-week moving average.

With its relative strength line already at a new high, Nasdaq continues to build a 43-week long cup with handle. The buy point is 64.88.

To spot emerging strength and potential breakouts, see how other stocks on the list of new buys by the best mutual funds are finding support or hitting resistance.

More Stocks To Watch Testing Buy Zone

Check the Excel file on this page to see the full list of stocks on this list of new buys by the best mutual funds. You’ll find several stocks, such as Dollar General, Eli Lilly, NextEra Energy and Albemarle (ALB), that are forming chart patterns or testing new buy zones. Albemarle gapped up Friday in heavy volume, adding to its recent string of big gains.

Just like with Nasdaq and Apple stock, take a look at their key moving averages and RS lines. Also check the volume on both the daily and weekly charts to gauge demand.

Last but not least, always view the action of individual stocks with the context of the broad market indexes. Megacaps like Apple, Exxon Mobil and Eli Lilly, as well as smaller companies like Wingstop (WING), Deckers Outdoor (DECK) and Academy Sports & Outdoor (ASO) don’t operate in a vacuum.

So while analyzing an individual stock’s relative strength line and behavior around key moving averages, look at the same factors in the major indexes.

Follow Matthew Galgani on Twitter at @IBD_MGalgani.

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