The market has a fresh catalyst after Trump’s recent victory, and traders are buzzing about high-potential setups in large-cap stocks. Stocks like Tesla (NASDAQ: TSLA), AppLovin (NASDAQ: APP), and MicroStrategy (NASDAQ: MSTR) are seeing massive price action as investors adjust their outlooks on everything from tech to crypto. Let’s dig into the setups, price action, and what could be next.
My top large-cap stock picks after Trump’s win — rated on chart pattern, price action history, and news — include the following:
Stock Ticker | Company | Performance (YTD) |
---|---|---|
NASDAQ: TSLA | Tesla Inc | + 32.23% |
NASDAQ: APP | AppLovin Corp | + 645.31% |
NASDAQ: MSTR | MicroStrategy Inc | + 420.42% |
3 Robinhood Penny Stocks to Watch After Trump’s Election Win
My top 3 large-cap stocks to watch after Trump’s victory are:
- NASDAQ: TSLA — Tesla Inc. — The Trump Catalyst and a Major Bull Case
- NASDAQ: APP — AppLovin Corp. — The AI Adtech Stock Up 600% This Year
- NASDAQ: MSTR — MicroStrategy Inc. — The Bitcoin Bull with a $42 Billion Buying Plan
Before you send in your orders, take note: I have NO plans to trade these stocks unless they fit my preferred setups. This is only a watchlist.
The best traders watch more than they trade. That’s what I’m trying to model here. Pay attention to the work that goes in, not the picks that come out.
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Tesla Inc. (NASDAQ: TSLA) — The Trump Catalyst and a Major Bull Case
Elon Musk has been front and center with the Trump administration, fueling new interest in Tesla’s long-term potential.
Tesla (TSLA) has gained over $320 billion in market value since last week’s election, despite a slight dip in early trading today. With Musk’s proximity to Trump’s inner circle and the prospect of supportive policies, investors are reevaluating Tesla’s position not just as an EV leader, but as a powerhouse in AI and autonomy.
Check out the latest news here: Tesla’s Giant Leap: Is Its Sky-High Valuation Justified?
Key Points for Traders:
- Strong Bullish Sentiment: Top Wall Street analyst Adam Jonas from Morgan Stanley laid out a scenario where TSLA could hit $500, valuing the company at $1.6 trillion if Musk’s influence with the Trump administration pushes Tesla into new markets like AI and automation. Right now, TSLA is trading around $350, meaning there’s still room for a 43% upside if Jonas’s “bull case” unfolds.
- Dojo Supercomputer: Tesla’s Dojo AI platform is a potential game-changer. Watch for volume spikes if there’s news on Dojo—this AI system could push TSLA higher, especially as the hype around AI tech remains strong.
- Trading Setup: Look for pullbacks and consolidation around $340–$350. If TSLA can break through resistance at $360, we could see a strong run toward Jonas’s target of $400 and possibly higher. Keep an eye on the volume—breakouts on high volume are ideal setups for quick entries.
AppLovin Corp. (NASDAQ: APP) — The AI Adtech Stock Up 600% This Year
Move over Nvidia—AppLovin has quickly become a top-performing AI stock, up a massive 628% this year.
AppLovin (APP) is a breakout name in AI adtech, with its Axon 2 platform driving unprecedented growth. APP has surged as investors see potential for the company to expand its AI capabilities beyond gaming and into e-commerce, which is a brand-new vertical for Axon 2.
What’s Driving APP’s Run:
- Big YTD Gains and Momentum: The stock is up over 628% year-to-date, making it a trader’s dream for breakout setups. Axon 2 has delivered strong results in gaming and is now piloting in e-commerce, adding fuel to the stock’s momentum.
- Guidance and Earnings Beat: The recent earnings call confirmed what traders love—higher revenue and better margins. Look for APP to hold the $280-$290 range as support. If it builds a base here, the next breakout could push it toward new highs, above $300.
- Trading Strategy: Don’t chase. Wait for APP to test support around $280 and then look for a strong breakout with volume if it approaches $300 again. Target smaller gains—10-15% in this volatile market can be plenty. With the recent run-up, play it safe and don’t hold longer than necessary.
More Breaking News
- Analyzing Hertz’s (HTZ) Stock amidst Fleet Initiatives and Strategic Moves: Buy or Hold?
- Super Micro Computer Faces Turbulence: Is It Time to Rethink Strategies?
- Is Joby Aviation’s Unexpected Slide a Buying Opportunity or Does It Signal Deeper Troubles?
MicroStrategy Inc. (NASDAQ: MSTR) — The Bitcoin Bull with a $42 Billion Buying Plan
MicroStrategy is doubling down on Bitcoin, announcing a $42 billion buying spree over the next three years.
Michael Saylor’s latest strategy is to make MicroStrategy (MSTR) the ultimate “Bitcoin Treasury Company.” The stock is up more than 360% year-to-date, closely tracking Bitcoin’s performance. After Trump’s win, the regulatory environment for crypto is expected to improve, which could support Saylor’s bullish thesis.
What Traders Should Watch:
- $42 Billion Bitcoin Plan: Saylor aims to raise $42 billion to buy even more Bitcoin, betting big on a long-term rally. With 252,200 Bitcoins already on the balance sheet, this could drive huge volatility in MSTR as Bitcoin prices swing.
- Correlation with Bitcoin: MSTR is basically a proxy for Bitcoin, so watch for price movements in BTC as a trigger for MSTR’s action. A Bitcoin breakout above $100,000 could send MSTR soaring, while a pullback would mean short setups could come into play.
- Trading Insight: MSTR is not a long-term hold but an ideal momentum play. Use Bitcoin price movements to guide your trades, but be cautious of high volatility. Set clear stop-losses and use tight entry points to capture profits on the next breakout.
Trading Tips for Large-Cap Momentum Stocks
When large caps get moving like this, it’s essential to keep your strategy simple but effective. Here are a few guidelines:
- Wait for Confirmation: Don’t rush in just because the stock is moving. Look for solid setups and volume confirmation before entering.
- Take Quick Gains: Large-cap momentum stocks often retrace after big moves. Aim for 10-15% profits on breakouts and exit quickly.
- Use Stop-Loss Orders: Protect your gains by setting stop-loss orders. These stocks can reverse fast, especially if Bitcoin or AI stocks pull back.
- Focus on Key Levels: Watch support and resistance levels closely, as large-cap stocks like TSLA, APP, and MSTR often react at these points.
Using Options to Trade Higher-Priced Stocks
Tesla, AppLovin, and MicroStrategy are all real companies with significant financial histories and growth prospects. They’re not like some of the penny stocks we typically watch—these are major players with established records of success. But here’s the catch: for many small-account traders, the share prices of these higher-value stocks can be prohibitive.
For traders looking to capitalize on price moves in these larger stocks without the high upfront costs, options trading offers a more accessible alternative. I don’t trade options, I leave it to pros like tech entrepreneur and trader Ben Sturgill. His smart-money webinars are the product of more than 2 decades of experience in the market—and they’re well worth checking out!
>>Check out Ben’s strategy for finding affordable setups on higher-priced runners<<
The Bottom Line
With Trump’s win fueling interest in everything from AI to Bitcoin, large caps like TSLA, APP, and MSTR are seeing explosive price action. For traders, the key is to stay nimble, capture profits, and manage risk as these stocks react to ongoing news and market sentiment. Always trade with a plan—don’t let FOMO lead to impulsive entries, and remember that the best trades come from disciplined setups.
Trading isn’t rocket science. It’s a skill you build and work on like any other.
I built my Trading Challenge to pass on the things I had to learn for myself…
Apply to the Trading Challenge here.
Trading is a battlefield. The more knowledge you have, the better prepared you’ll be.
Join the conversation: What’s on your stock watchlist for this month? Share your thoughts in the comments!
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