My EOY Strategy for Trading High-Flying Tech Stocks

by | Oct 28, 2024

See what I’m trading and how, get market insights and more on “Final Hour,” weekdays at 3 p.m. ET!

As we approach the end of the year, the tech sector continues to show potential for upside, and I’m keeping an eye on specific names that look poised to benefit from seasonal trends. 

When I look at stocks like Qualcomm (QCOM) and Google parent Alphabet (GOOG; GOOGL), I’m watching for a few key signals: pullbacks to reasonable levels, solid technical setups, and a supportive macro backdrop that could drive these names higher.

Take Qualcomm, for example… 

We’re seeing some potential here, but it’s at a point where it would be smarter to wait for a pullback rather than chase. It’s currently behaving like Google in terms of valuation and positioning — not at all-time highs but with significant upside potential based on discounted cash flow models. 

This is a good reminder to avoid chasing… Instead, look for better entry points, like if Qualcomm returns to support around its 200-day EMA. The goal is to find stable support and capitalize on the upward drift we tend to see with tech stocks at this time of year.

Broadcom (AVGO) is another example worth noting. 

Sitting around all-time highs, it’s an impressive stock that I’d like to see come down a bit before entering. Ideally, I’d look for it to pull back to a base that offers a lower-risk entry, which could set up nicely for a trend-following move. 

These high points in tech can be tempting, but without a pullback, it’s too risky — especially in volatile markets ahead of an election.

Now, in terms of seasonal movement, tech generally performs well into the end of the year. If we get rate cuts, it could provide an even stronger tailwind, helping lift the tech-heavy Nasdaq. 

But I’m realistic. This market is susceptible to headline-driven swings, so we need to keep buying power at the ready. I always aim to leave room for new entries if a pullback occurs — whether it’s in the tech sector or broader market plays.

So, what does this mean for an end-of-year tech strategy? 

For one, it’s about managing risk while staying exposed to the upside potential. It’s also about knowing when to jump in — waiting for that pullback instead of getting caught in a high entry point. 

Stocks like Qualcomm and Broadcom are on my radar, and if they come back to solid support levels, I’ll be looking at structured options plays like bull call spreads. It’s a straightforward way to limit downside risk while keeping a clear profit target.

Ultimately, whether it’s a positive drift or a rate-cut-fueled rally, these setups are a key part of how I manage seasonal market trends. 

The goal is simple… 

Make consistent, low-risk entries, especially as we watch for a pullback that could open the door to an easy win by year’s end. 

I’ll see you in the markets. 

Chris Pulver
Chris Pulver Trading

Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!

*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. 

Don’t Be Late for Graham’s Encore Premiere of His Brand-New Newton Indicator! 

If you missed us earlier today, I went live with Graham to see the big reveal of his brand-new Newton indicator…

And to catch the three stocks that just signaled BUY — which he gave away for free. I won’t be with him but he’s going live again at 4 p.m. ET TODAY…

And you guys have to see this!

Graham’s ready to break down this new buy signal from Newton.

The setup is even stronger now, and Graham’s already mapped out what he thinks is the perfect options play to go with it.

As you may know, this is the same kind of signal that caught that 16% AAPL move when trading legend Michael Burry was shorting.

And while we cannot promise future returns or against losses… 

He’s sharing this juicy new info…

So Jump on In and Join the Fun!

What to read next