Legendary Trader Says Tesla, Nvidia, Apple Shares Are Ready To Rally: 'I See What I Like To See'

by Adam Eckert Benzinga Staff Writer

Renowned trader and chartist Larry Williams believes the market is ready to rally after falling into correction territory last week — and he has a few ways to play it.

What To Know: The S&P 500 officially closed in correction territory on Thursday, representing the fastest market correction decline since March 2020. Everyone wants to know what’s going to happen next and Williams believes he has answers.

In a YouTube video posted by StockCharts TV on Saturday, Williams explained that he sees a rally ahead because the market is undervalued, smart money has been buying and cycle data says it’s time to buy.

“You can have a good stock but if you don’t buy it at the right time you can still have problems … right here right now is probably the right time,” Williams said.

Some stocks that he’s watching include Tesla Inc TSLA, NVIDIA Corp NVDA, ASML Holding N.V. ASML and Apple Inc AAPL.

Smart money has proven to be a strong predictor of Tesla’s future stock performance based on Williams’ charts. The trader noted that smart money stepped out of Tesla stock last year but money has started to flow back in as the stock has given back some of its gains.

“When I look at the conditions of this stock, I see what I like to see,” Williams said, adding that it’s undervalued, a bullish cycle should be coming and smart money is starting to buy the name.

Check This Out: S&P 500 Price Trend Flashes Warning Signals But This Expert Says ‘Start Looking For A Buy Signal’ After Last Week’s Drawdown

Nvidia is another stock that fits the bill and could be poised to rip higher, according to Williams. The legendary trader said Nvidia shares just recently reached undervalued territory in his model. At the same time, smart money is starting to buy more aggressively.

Williams noted that the one thing he doesn’t like on the Nvidia chart is that the stock recently made a lower low than it did in January. He offered ASML Holding as a potential alternative as it has held up better than Nvidia during the most recent selloff.

“This was in stronger hands coming down than Nvidia was coming down. I like to buy stocks that have been in strong hands,” Williams said.

Finally, Williams highlighted Apple as potentially being ripe for a bounce. The stock is at a point where it’s expected to rally based on seasonal patterns. Apple shares also held up comparatively better than the overall market during the most recent selloff, he said.

In order for any of these stocks to work, the overall market is going to need to recover. Williams believes the market is set to do just that if the Trump administration can put an end to the war in Ukraine.

“I think that is most likely going to be the trigger mechanism to see things like Apple start to move back to the upside,” Williams said.

Price Action: At publication time, Tesla shares were down 5.95% at $235, Nvidia shares were down 1.7% at $119.59, ASML Holding shares were down 1.57% at $725.02 and Apple shares were down 1.28% at $210.75, per Benzinga Pro.

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