Currently showcasing top growth names like Apple, Netflix and Arista Networks, the IBD Breakout Opportunities ETF tracks the components of the IBD Breakout Stocks Index. After notching a 52-week high last month, the BOUT ETF has retreated to kick off September as Apple stock, Netflix and Arista hit resistance.
The post-Labor Day drop comes as the Nasdaq has swooned below its 50-day and 21-day exponential moving averages. Like the S&P 500, the BOUT ETF is clinging to support at its 50-day line.
Apple Stock Tested Ahead Of New iPhone Launch
After retaking its 50-day line in August, Apple edged steadily higher for three weeks, setting up a potential breakout from an early stage consolidation pattern. The buy point is 237.23.
But as Apple gets ready to release the iPhone 16 on Sept. 9, turmoil in the Nasdaq has taken a bite of Apple stock. The Magnificent Seven member, which accounts for around 10% of the market capitalization weighting of the Nasdaq, fell nearly 3% Tuesday. Apple dipped again Wednesday, but came off the day's lows to post a loss of less than 1%. It ended the session just below its 50-day line.
Along with the new iPhone release, the king of Cupertino — featured in the IBD Stock Analysis on Friday — continues to build Apple Intelligence into its iPad and Mac products. The company may also pivot to put more focus on smart glasses with its Apple Vision Pro.
See Who Joins Apple And Netflix On The IBD Breakout Stocks Index
Netflix Stock Buffering After Breakout
After forming a late-stage cup pattern with a 697.49 entry, Netflix stock briefly broke out on Aug. 20. After moving sideways for several days, the stock retreated nearly 4% on Tuesday. But volume was below average, a sign that investors were not aggressively dumping shares.
On Wednesday, the stock showed resilience. The video streaming service, which boasts 270 million paid memberships in over 190 countries, remains above its 50-day line. In another sign of technical strength, the 21-day exponential moving average has edged back above the 50-day benchmark.
Arista Joins Netflix Stock And Others Targeting Breakouts
In addition to Apple and Netflix, several other names on the IBD Breakout Stocks Index are in or near buy zones. But like Apple and Netflix, Arista stock ran into resistance Tuesday. It fell more than 7%, slicing below its 50-day line. It's edging lower again Wednesday, closing 5% below its 50-day benchmark.
DaVita has shown resilience and remains in buy range. The dialysis center operator was featured in the IBD Stock Analysis on Aug. 14.
Others setting up or breaking out in the index include Palo Alto Networks, Corpay and Interactive Brokers.
Meanwhile, several components of the BOUT ETF, including Axon Enterprise and Halozyme Therapeutics, have climbed beyond buy range.
But with top names like Apple, Netflix under pressure as the Nasdaq takes a hit, investors should be sure to follow sounds rules on how to buy stocks and when to sell stocks.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to invest in the entire index in addition to, or rather than, buying individual stocks. Learn more here about the ETF and Innovator.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
