The Power Of The Cross – Time To Buy

These are charts of two spectacularly fast-growing companies that lie at the heart of the AI revolution. A buy signal on the chart is signalled by a cross. There is just one cross, which is on the Palantir chart ahead of a spectacular rise. We are close to another cross appearing on this chart.

In the case of SanDisk, there is no red line, so no cross anywhere on the chart. Even using green and yellow lines to signal crosses, there are still none, but one is close to appearing, and the chart generally appears promising.

Meta Platforms is close to giving a buy signal based on a cross. Signals have worked well in the past, and a notional signal back in 2013 would also have worked well. We also have a major ‘something new’ for Meta Platforms: its newly launched Muse AI platform. Meta has been investing on a colossal scale in data centres and AI, and investors have worried about whether this massive investment would generate exciting returns. Latest news suggests it will. Meta Muse is Meta’s dedicated personal AI agent designed to act on your behalf rather than just answering questions. Available across mobile (iOS/Android), desktop (macOS), and via messaging apps like WhatsApp, Muse handles complex, multi-step tasks across connected apps, files, and live web sessions. What has also impressed investors is that the new app has surged straight to number one on the IOS App Store upon release, driven by high consumer interest in its agentic execution capabilities.

A major ‘something new’ combined with a powerful chart buy signal would be a perfect time to launch a $-cost average buying programme.

Apple isn’t about to give a buy signal, but it has delivered a series of highly successful ones in the past. The shares are hitting new all-time highs powered by the launch of a foldable iPhone, which is expensive, $1,999 and sounds exciting with a 5.4-inch outer screen which opens to an inner 7.6-inch OLED display. Generally speaking, moving average cross buy signals have worked well with all the mega-cap stocks and with the Nasdaq 100 index.

Share Recommendations

Palantir PLTR

SanDisk SNDK

Meta Platforms. META

Apple AAPL

Strategy – Buy Into A Cross

A cross is simple. It occurs when a long-term moving average moves up through a longer-term moving average. Because I use long-term averages, signals are relatively rare but all the more powerful. It would be lovely if moving averages based on daily charts worked. We could all make a quick fortune and retire. Unfortunately, they don’t. It is only when patience becomes part of the package that charts deliver powerful results.

The other magic ingredient to make charts work is a long-running secular bull market driven by an overwhelming ‘something new’. This is exactly what we have in the US stock market. Is AI going to end up killing us all in the famous AI Extinction? I have no idea, but until that happens, it seems only sensible to capitalise on this huge development in mankind’s history.