Some of last year’s best market performers could continue their climbs in 2021, according to two traders.
The major averages ended 2020 in the green after falling precipitously as Covid’s economic damage set in. Several S&P 500 stocks were particular standouts:
- Tesla, its top-performing name, advanced by more than 743%
- Etsy soared nearly 302%
- Nvidia climbed almost 122%
- PayPal gained 116.5%
- L Brands rose by over 105%
“A lot of these stocks are a little on the overbought side, but one of them is not,” said Matt Maley, chief market strategist at Miller Tabak. “That’s Nvidia.”
Nvidia’s relative strength chart showed the stock getting “very overbought” in late August, Maley said on CNBC’s “Trading Nation.” When a stock’s relative strength index rises above 70, it is often interpreted as a signal of a possible pullback.
“Instead of really pulling back, it’s seen a nice sideways correction and that’s taken its RSI chart down to neutral territory down in the mid-50s. So, that’s great,” Maley said Thursday. “Whether the market sees a little bit of a pullback next year or if it even rallies straight from here, this one, I think, is going to have the most upside as we move through 2021.”
In the same CNBC interview, New Street Advisors Group founder and CEO Delano Saporu had his eye on PayPal and Etsy.
He expects the expansion of “digital payment solutions” to continue to fuel PayPal’s climb, and for Etsy, he likes its unique offering.
“I think they’re not trying to be Amazon. They’re looking for customization,” he said. “They’re looking for people that want something more specific, and they found a niche in that role, and I think Etsy still continues to move higher on momentum.”