As Wall Street tries to guess what comes next for artificial intelligence juggernauts like Nvidia (NVDA), Palantir Technologies (PLTR), Alphabet (GOOGL) and AppLovin (APP), and makes other stock market predictions for 2026, the Nasdaq composite has weathered a volatile 2025 to gain 19% so far this year. But a volatile November and December have made risk management and rules for how to buy stocks and when to sell top of mind for investors as they strategize how to invest in 2026.
It’s tempting to make forecasts for the indexes and megacaps like Nvidia and Palantir, as well as the latest IPO Leaders, for the coming year. But savvy investors know that preparation trumps predictions. And a simple way to stay ready for whatever 2026 brings is to stick to this three-step investing routine. It provides a road map to stay profitable if the market roars — and protected if it rolls over.
Just as stock market predictions have a tendency to not play out as expected, investors’ attempts to impose their will on the market based on what they want to happen are, in a word, futile.
A more prudent way to invest in stocks is to monitor and stay in sync with market trends. In bull and bear markets, three out of four stocks tend to follow the overall trend. To make the trend your friend, regularly monitor The Big Picture and Market Pulse. Each day, these features put the latest market action in perspective, with an eye on spotting any sector rotation and changes in trend. And keeping risk management in mind, each day IBD’s recommended market exposure level provides a range of how aggressive or defensive investors should be as per the IBD Methodology.
As you take measure of the current market, use stock lists and tools like the Stock Screener and Stock Checkup to find and evaluate potential stock picks.
Exclusive stock lists like the IBD 50, IBD Big Cap 20 and IPO Leaders are computer-generated and based on objective criteria and unbiased ratings. Currently, Palantir earns a spot on the IBD 50, IBD Big Cap 20 and IBD Sector Leaders. Each day, you can see which names just came on or off these lists.
With stock screens, investors can quickly zero in on top-rated growth stocks based on preset or customizable criteria. For example, investors can filter through over 10,000 stocks to instantly identify which ones have strong earnings and sales growth, relative strength, institutional demand and other desired criteria.
To evaluate stocks of interest, start with Stock Checkup. Just enter a ticker to get an instant diagnosis, with pass, neutral or fail ratings for a host of fundamental and technical criteria. For example, as of Dec. 22, Nvidia stock earned the highest-possible 99 Composite Rating, meaning it was outpacing 99% of all stocks in terms of key stock-picking factors. Fellow AI stocks Alphabet, Palantir shared that same honor.
Last year’s article on how to invest in 2025 focused on drawing lines for stocks like Nvidia, rather than conclusions. That proved helpful when tech stocks like Nvidia and the market turned bearish at the beginning of the year. Nvidia and others fell below the 10-week moving average before bouncing back above that line in May to spark a new climb.
Now with 2026 just around the corner, the same basic concept holds true. Rather than make stock market predictions for the New Year, use stock charts to analyze stocks you own or have on a watchlist. Use stock charts to gauge three key factors: relative strength, institutional demand and support or resistance around moving average lines.
The relative strength line shows how a stock’s price performance compares with the general market, using the S&P 500 as the benchmark. The trajectory of a stock’s RS line reveals if it’s leading — or lagging — the market.
Tracking demand provides another indispensable clue, and the most effective way to do that is with stock charts. Wall Street has no shortage of overly rosy — and equally gloomy — forecasts. But by watching the price and volume action in charts, investors cut through that noise to see the real story.
Monitoring support and resistance around the 21-day exponential moving average and 50-day line provides indispensable insight into a stock’s true health.
As 2026 comes into view, apply this routine to bellwether names like Nvidia, Palantir, Alphabet and any stock in your portfolio or on a watchlist. This approach will provide timely signs of any sector rotation, revealing what stocks are coming into — or out of — favor as the year unfolds.
Written by: @Yahoo Finance
The post “Stock Market Predictions For 2026? Worthless. This Approach? Priceless.” first appeared on Investor’s Business Daily
