The Best Window to Buy Tech Stocks Starts Today
Listen to the audio version of this article (generated by AI).
In This Digest:
- It’s the best time to buy tech stocks all year
- Here are our favorites, backed by institutional money flows
- Main Street and Wall Street see SpaceX two different ways, and that spells opportunity
One of the most bullish seasonal windows for tech stocks just opened up…
If you’ve been following us for some time, you’ll know how Seasonality works. But for newer readers, a quick introduction.
Seasonality is the study of how stocks tend to rise or fall during specific calendar windows throughout the year.
These windows aren’t easy to spot on your own. There’s just too much data to crunch.
That’s where our Seasonality tool comes in. It scans decades of trading history to find calendar windows where a stock or index tends to rise or fall with surprising levels of regularity.
And right now is a bullish time for tech stocks.
It’s all in this seasonality chart of the Invesco QQQ Trust (QQQ) – which tracks the tech-focused Nasdaq 100 index. It looks at midterm election years going back to 2002.
From Oct. 13 through Nov. 11, QQQ has risen every single midterm year –for an average return of 7.5%.
QQQ is also in a Short-Term Health Green Zone – confirming it has bullish momentum.
The easiest way to play this seasonal window is QQQ. It holds 100 of the largest non-financial stocks on the Nasdaq. Its largest holdings include Nvidia (NVDA), Apple (AAPL), and Microsoft (MSFT).
If you want to drill deeper, use the Quantum Score…
Our Quantum Score ranks stocks from strongest to weakest using two key factors:
- Fundamentals like profits, sales, and debt levels.
- And Technical factors – like large inflows from deep-pocketed Wall Street investors.
This lets you see the strongest stocks in the most powerful uptrends, backed by big money.
Here are the top five stocks in the Nasdaq 100 right now, according to their Quantum Scores:
All five score above our 75 buy threshold, and all five are in Short-Term Health Green Zones – a sign of strong bullish momentum.
Keep these on your shopping list for the seasonally bullish period ahead.
And if you subscribe to Quantum Edge Pro, run a screen on the rest of the Nasdaq 100 – there are dozens more stocks than these five that clear our buy criteria… and quite a few that don’t.
Wall Street and Main Street are reading SpaceX very differently…
On Sept. 28, SpaceX’s Starship rocket reached orbit for the first time, hitting 17,500 miles per hour and releasing 26 next-generation Starlink satellites along the way.
Wall Street’s response was mixed – and when you look at the books, it’s hard to blame them.
SpaceX (SPCX) is trading 28% below its June high. Capital spending is up sixfold over the past year. AI spending alone hit $16 billion in the second quarter. The company is now looking to raise $40 billion, mostly through debt, just to buy more Nvidia chips.
But Andy and Landon Swan – the brothers who head up our MegaTrends advisory – remain SpaceX bulls. And not because of its balance sheet… but because of what Main Street sees and Wall Street’s missing.
Andy and Landon built their edge with the Social Heat Score. It’s a proprietary data engine that tracks purchases, app downloads, brand searches, and web traffic related to nearly 4,000 stocks.
Every stock gets a Main Street Score, based on this data. And they get a separate Wall Street Score, based on earnings reports and the other official company filings that Wall Street uses.
Their favorite setups are the ones where consumer demand is high, and Wall Street’s expectations are low.
And as you can see, SpaceX has a Main Street Score of 71 and a Wall Street Score of 56 – a gap of 15 points.
Consumer data backs it up. Demand for SpaceX products is running 126% higher than a year ago, and people switching to Starlink outnumber people canceling it eight to one. Starlink has 12 million customers, double last year’s count, with revenue of $4.3 billion for the quarter, according to its Q2 print.
SpaceX started trading as a public company earlier this year, and its most profitable business right now isn’t rockets – it’s Starlink.
That profitable core is also funding Musk’s bigger bet: renting out AI computing power to firms like Anthropic and Google. This business has grown 250% from a year ago.
Just be aware that it’s a volatile stock. Andy says:
There will be massive drawdowns in the stocks and in the revenues. There will be huge spending sprees that have to occur in order to accomplish these things. So we want to be careful, we want to be patient, and we don’t want to try to time entries and exits on this one.
Andy recommends picking a dollar amount you’re comfortable committing, divide it by 12 or 15, and buy that amount every month rather than trying to time an entry.
If you’re a MegaTrends subscriber, catch Andy’s full Video Bulletin for the rest of his read on where this goes.
To building wealth beyond measure,
Michael Salvatore
Editor, TradeSmith Daily
Disclosure: At the time of this writing, Michael Salvatore held shares of SPCX.