Here’s a great tech name to put on your shopping list and how to buy it even if the bear market is far from over

Amid hopes of a bear killing October, a mixed start is underway on Monday, with technology under pressure.

This is how Tesla shares plummet in the premarket after quarterly sales not good enough. Meanwhile, investors seem modestly impressed by the UK government’s efforts to extinguish a recently started market fire as another crisis could prepare for the health of a major European bank.

To be sure, an endless supply of headwinds could make the S&P 500 SPX
work harder to find its true bottom. This brings us to ours call of the dayby Matt Maley, chief market strategist at Miller Tabak + Co., who sees Alphabet GOOGL, the parent of Google
as one of the best oversold names to start buying right now.

He admits that the market in general still doesn’t seem that cheap, while Alphabet faces some headwinds, but its search engine business “is still a monster … with ad sales growth of more than 13% in the” last quarter “.

The stock is trading at 17x forward earnings and 18x reported earnings, he notes. “Since the company went public in 2005, it has only been cheaper at the end of the Great Financial Crisis and after two dips in 2011 and 2012, during the European crisis of that time (Greece),” Maley said.

Miller + Tobacco

So how do you do it? Maley suggests buying Google’s parent company gradually over the next few months, similar to the “dollar cost average,” by regularly investing a fixed amount in a stock or asset, regardless of the market.

This strategy works well when companies are cheap and is excellent to use during bear markets, “especially after the ‘bear’ has already done a lot of damage,” Maley said. But the shares of a good company can get even cheaper before they hit the low, which is why they have to buy gradually, for individual investors this could mean once a month for 9-12 months.

Alphabet’s average price – down nearly 34% year to date – should look good in a year and even better in three to five years, because decent names that get thrown out in a bear episode often come back stronger than the broader market in the following years, he adds.

Note, the strategist is adamant that more foam needs to come out of this market, perhaps another 15% in the 3,000 bass for the S&P 500 SPX.
The market had become too expensive compared to the economy, which “had been pushed to a level it could not maintain without steroids.”

“It has to get back into line with the underlying economy … and the underlying economy has to get back into line with the growth it can sustain without artificial liquidity. Don’t fight the Fed,” Maley says.

Laws: After the worst September for equities since 2002, here’s what October could bring

Markets

YM00 Stock Future

ES00
are moved, with those for the Nasdaq-100 NQ00
down, with stable Treasury yields BX: TMUBMUSD10Y

BX: TMUBMUSD02Y.
The British pound GBPUSD
is active and gilts produce BX: TMBMKGB-10Y
they are down after the UK government’s turnaround on a heavily criticized budget move. CL oil prices

BRN00
Hopes for a cartel production cut are rising this week, with RBZ22 gasoline prices
also shooting higher, but NG00 natural gas prices
down.

The buzz

The Organization of the Petroleum Exporting Countries and Moscow-led allies, aka OPEC +, could cut production by more than 1 million barrels per day, the largest since the pandemic began, during Wednesday’s meeting.

Tesla TSLA
reported record quarterly deliveries on Sunday. but the number still disappointed analysts. The shares were down about 4%.

Credit Suisse CS Shares

CH: CSGN
is tumbling after the Swiss bank’s worrying health headlines following Friday’s rise in credit default swaps.

Citigroup lowered the S&P target at the end of 2022 to 4,000 (from 4,200). They see a rise in risk in the last quarter, driven in part by depressed sentiment.

A big week for data ends with non-farm payrolls. For Monday, we will have the Institute for Supply Management Production Index and Construction Expenses, both at 10am Eastern. Auto sales and a speech by New York Fed Chairman John Williams are also on the schedule.

According to the Danish authorities, two ruptures of the European Nord Stream gas pipeline appear to have stopped the natural gas leak. But a global energy body has warned that Europe will face an “unprecedented” shortage of natural gas this winter if it does not cut consumption by 13%.

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The graph

Our chart from Matt Foxfounder / president of Ithaca Wealth Management, discusses the important levels to watch on the S&P 500. It was reported in The Chart Report (h / t Howard Lindzon), who said this:

Matt points out that he is currently testing his 200-week moving average for the first time since the pandemic. We actually closed slightly below it today [Friday], so buyers will have to show up soon if we have a 2011 or 2018 scenario. If we extend below, it will be a big red flag. Either way, keep an eye on how this test will turn out in the coming weeks, “the Chart Report said.

The tickers

These were the most searched tickers on MarketWatch at 6:00 am Eastern time:

ticker

Security name

TSLA

Tesla

GME

GameStop

AMC

AMC entertainment

AAPL

apple

NIO

NIO

AVCT

American virtual cloud technologies

BBY

Bath to bed and beyond

TWTR

Twitter

DWAC

Acquisition of the digital world

CS

Credit Suisse

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