Riding the Market Leaders: How to Bet on ‘Sapphire’ Stocks Amid a Pullback

Imagine a great horse race that began in early April. Some contenders seized the lead from the first turn and have not looked back since. They gallop with power, setting a pace that forces the rest of the field to either follow their wake or fall behind. These are the leaders, the ones who don’t need to check over their shoulder because they feel the race is running in their favor.

In such a contest, when the market offers a chance to place a bet midway through, the logic is clear. It’s not just about buying strength, but doing so with discernment. The focus is on leading horses with a strong pedigree. This is where the concept of “sapphires” comes in: companies that are exceptional for their business quality, fundamental solidity, value chain position, and long-term visibility. These are stocks that not only lead today but are also on the radar for the Tressis Cartera Eco30 fund. The strategy demands strength, but backed by structure, recurring revenue, and strategic sense.

The Nasdaq 100 continues to trade below the 26,180-point level, the same peak that halted the artificial intelligence rally in late October and is once again acting as a ceiling. This is not just any resistance; it’s where the market is testing its strength. For now, selling pressure is prevailing from that point, and the index is approaching its first support at 24,950 points.

Should the index fall below 24,950, it should not be seen as an alarm bell but as a logical digestion after months of intense gains. Such a move would open the door to a return to the November lows, around 23,900 points—an area that presents an optimal zone to begin preparing purchases. It is during these pauses, when the noise subsides, that smart money often repositions itself in the leaders.

Here is a selection of sapphire stocks, both in the United States and Europe, that are currently running like thoroughbreds, with a focus on the technical levels to watch for disciplined entry.

Alphabet (GOOGL, Nasdaq)

Alphabet is far more than a search engine. It is one of the world’s largest platforms for data, advertising, and digital services, holding dominant positions in search, video, and mobile operating systems. Its ecosystem generates recurring cash flow, making it a top-tier sapphire for any portfolio.

The stock’s latest uptrend began around the $140 mark and has, for now, peaked at $340. If a correction ensues, a 23.6% Fibonacci retracement would bring the price toward $295, a 13% drop from its highs, where it would make sense to start placing buy orders. A deeper adjustment to the 38.2% level, around $264, would represent a correction of just over 22% and would be a magnificent scenario for patiently completing positions.

Microsoft (MSFT, Nasdaq)

Microsoft stands as a pillar of the global technology market. Its business model combines recurring revenue, visibility, and growth, underpinned by its dominance in enterprise software, cloud computing, and digital services. The integration of artificial intelligence further strengthens its strategic position.

There are two very clear buying zones. The first, at $440, has already been reached; this was the minimum downside target from a double-top bearish reversal pattern confirmed after the stock lost the $493 level. The next area to watch is between $400 and $410. This range is significant as it aligns with the base of the large bullish gap from early May of last year and the uptrend line originating from the 2022, 2023, and 2025 lows.

Nvidia (NVDA, Nasdaq)

Nvidia is the totem of the artificial intelligence revolution. Its leadership in high-performance chips for data centers has placed it at the center of global investment in advanced computing. Beyond its spectacular stock performance, its strength lies in a clear technological advantage, growing structural demand, and pricing power few companies can match. It is a thoroughbred leading the race, but also a sapphire in terms of business quality.

For Nvidia, two key reference zones stand out. The first is between $165 and $175, a range where initiating purchases would be logical. If that support were to break, a decline toward $130-$135 would be an exceptional scenario. Such a move would retrace 61.8% of the entire AI rally that began in early April and would also meet the minimum target of a head-and-shoulders pattern, which would be confirmed upon a loss of the $165 level.

Infineon (IFX, Xetra)

Infineon is a major European semiconductor player with a key position in the automotive, industrial, and power management sectors. Its business is closely tied to structural trends like electrification, energy efficiency, and the transition to electric vehicles. The company plays a strategic role in the European supply chain, and its long-term visibility makes it a textbook industrial sapphire.

For those not already holding Infineon, initiating a position with a third of a full lot at current levels could be considered. The next level to watch is around €38, where another third could be added. A drop toward the €31 zone would present an extraordinary opportunity to strengthen positions with a medium- to long-term view.

NXP Semiconductors (NXPI, Nasdaq)

NXP is a key player in semiconductors for the automotive, industrial, and secure communications markets. Its exposure to vehicle digitalization, connectivity, and payment systems places it at the heart of several megatrends. With critical technology and long-term client relationships, its market position is difficult to replicate, reinforcing its profile as a sapphire within the sector.

For NXP, purchases would be considered if the stock corrects to the $205 zone, which marks the lows from last August. That level appears to be the right point to place orders and enter the stock without chasing prices.