Apple, chipmaker Taiwan Semiconductor Manufacturing, Advanced Micro Devices and Bloom Energy traded near key technical buy points during Wednesday's session even as the S&P 500 and Nasdaq composite threatened to slip below their 50-day moving averages. Investor's Business Daily is telling traders to keep 40%-60% stock exposure while watching for confirmed breakouts rather than chasing early entries.
Dow component Apple, Nvidia chipmaker Taiwan Semiconductor Manufacturing, Advanced Micro Devices and Bloom Energy moved higher during Wednesday's session. The S&P 500 and Nasdaq composite threatened to fall below support at their 50-day moving averages at the same time. That backdrop calls for traders following IBD's methodology to emphasize defense, with some flexibility to buy breakouts in leading growth stocks.
Apple rallies toward a cup-base buy point
Apple cleared an early buy trigger at 330.81 and is trading right around that entry, per IBD MarketSurge chart analysis. Shares are also rallying toward a cup-base buy point at 344.57. Apple stock rose 0.6% by midday Wednesday.
The move follows Apple's "Surprise and Shine" event last week, where the company showed off its first foldable smartphone, the iPhone Duo, alongside the iPhone 18 Pro and Pro Max, new Apple Watch models and AirPods. All the new products carry AI features, including the Siri digital assistant.
TSMC and AMD test support levels
TSMC, which makes chips for AMD, Apple, Broadcom and Nvidia, gained 1.5% Wednesday afternoon while testing its 50-day moving average. A buy point at 444.29 is in sight.
AMD, which competes with Nvidia in AI data-center chips and with Intel in PC and server processors, rose 4% in Wednesday's action. The stock is trying to find support at its 50-day line, holding within 1% of a 526.79 buy point — traders are told to wait for a breakout above that level before buying.
Bloom Energy climbs ahead of S&P 500 entry
Bloom Energy climbed 3.9% Wednesday. Shares are moving closer to a handle entry at 283.83. The stock cleared an early buy point at 253.31 last week and is holding above it.
The fuel-cell systems provider will formally join the S&P 500 at the start of trading on Sept. 21 as part of the index's quarterly rebalance. Bloom supplies bolt-on power generation for data centers, a role that has made it an AI infrastructure play.
IBD recommends stock exposure in the 40%-60% range following weak price action in recent sessions, pointing traders toward watchlists rather than early entries ahead of confirmed breakouts.
Source: Investor's Business Daily
Trading involves risk.
Risk Disclaimer
