Key takeaways:

• Tesla share price low draws in significant trade interest and a new wave of long-term holders 

• Last month Nasdaq rebound played into the hands of the Selfwealth community favourite US investing theme

US stocks closed out January on a strong note amid a wave of optimism. Investors cheered signs that inflation appears to have not only peaked, but is cooling at an encouraging pace. 

At the same time, that is stoking belief the Federal Reserve rate hike cycle could be near its end, with the economic outlook also looking slightly better than expected.

The Nasdaq recorded its best January result since 2001, up 10.7%, while the S&P 500 delivered its best start to the year in four years, gaining 6.2%. Returns for the Dow Jones were more modest at 2.8%, highlighting the rebound was largely on the back of a surge in the share prices of tech stocks.

Looking over January action, here are the most popular US stocks in the Selfwealth community.

US share trading activity

By volume, Tesla (NASDAQ: TSLA) was far and away the most actively traded stock last month, with trades in the electric vehicle manufacturer spiking after the stock hit a 28-month low. 

The company woes were attributable to a series of issues. These included concerns about Elon Musk management in the wake of his attention being preoccupied by Twitter, manufacturing issues out of China, concerns about demand in the face of a slowing economy, and the company deliveries falling short of expectations. 

However, by the month end, Tesla investors were content to shift their focus away from these issues, with the stock up almost 90% from its low. That translated into Tesla being the sixth most traded US stock by value on the Selfwealth platform.

Despite being a popular name among buyers, Tesla was also the subject of significant speculation betting against the company. This interest was picked up via trading in the niche security that is the AXS TSLA Bear Daily ETF (NASDAQ: TSLQ), which is an ETF that effectively bets against Tesla - and only Tesla - by tracking the inverse performance of the EV-maker.Netflix (NASDAQ: NFLX) made headlines when it reported its quarterly results last month, and it appears Selfwealth members took that opportunity to trade the news. The stock advanced 20% in January as the company announced it added 7.66 million paid subscribers during the fourth quarter, more than 3 million ahead of analysts expectations.

Management anticipates revenue growth of 4% in the first quarter of 2023. To date, the level of consumer engagement between its new ad tier and regular plans has been comparable, with an insignificant number of users switching plans. 

Canadian fertiliser company Nutrien (NYSE: NTR) was the subject of a limited number of buy orders last month, but it appears those backing the stock have a high conviction in its outlook. The company was a major beneficiary of surging commodity prices in the immediate aftermath of the war in Ukraine, but as prices have reverted back towards pre-war levels, Nutrien share price slipped to a yearly low at the start of January.China reopening has provided the impetus for a revival in a host of companies operating in the world second largest economy, including Alibaba (NYSE: BABA). The stock finished January as the 19th most traded by value, but ranked even higher by trades, placing 11th. 

With buying activity driving the majority of action for Alibaba trading, investors may be gaining confidence that the Chinese government will make a concerted effort to boost economic growth, which could help firms like Alibaba turn around slowing growth.

Following a resurgence in tech stocks, there were signs of greater conviction in the outlook for semiconductor shares. While usual suspects Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) both feature in the top 20 for activity by value and by trades made, Taiwan Semiconductor Manufacturing (NYSE: TSM) also joined the list. Buyers made up the majority of activity in the Taiwan-based chip foundry, which just a couple months back caught the attention and backing of none other than Warren Buffett.Top 20 stocks traded by valueCode Security

Buy-sell Ratio

1SQQQProShares UltraPro Short QQQ ETF

50.6%

2TQQQProShares UltraPro QQQ

50.0%

3AAPLApple

50.0%

4MSFTMicrosoft

51.0%

5GOOGLAlphabet

51.1%

6TSLATesla

54.4%

7BACBank of America

47.0%

8CCitibank

46.8%

9SOXSDirexion Daily Semiconductor Bear 3X Shares

72.2%

10AMZNAmazon

70.8%

11NFLXNetflix

48.2%

12TSLQAXS TSLA Bear Daily ETF

49.4%

13NVDANvidia

36.7%

14QQQInvesco QQQ Trust Series 1

98.2%

15SDOWProShares UltraPro Short Dow 30 ETF

62.2%

16NTRNutrien

100.0%

17AMDAdvanced Micro Devices

48.3%

18FNGDBank of Montreal MicroSectors FANG Index 3X Inverse Leveraged ETN

50.2%

19BABAAlibaba

52.4%

20TSMTaiwan Semiconductor Manufacturing

84.3%

Which US shares are the most held?

Tech shares remain the most popular investing theme across the US portfolios of the Selfwealth community, with 11 out of the top 20 names coming from this sector. 

Thanks to its remarkable turnaround across the course of the month, the value of community holdings in Tesla grew by more than 40%, reaching its highest level since October. The gap between Tesla and the rest of the pack also increased, such that the value of Tesla shares held by Selfwealth members almost accounts for the combined total of the next three names in Apple (NASDAQ: AAPL), Royal Bank of Canada (NYSE: RY), and Microsoft (NASDAQ: MSFT). A couple of names that moved up the list in January include Amazon (NASDAQ: AMZN) and Meta Platforms (NASDAQ: META). Both stocks posted a stellar result in January, each climbing more than 20% throughout the month. Those share price gains, as well as a disproportionate level of buying interest for both stocks saw the duo leapfrog other top 20 names.Meanwhile, two stocks that slid a couple places, with interest seemingly fading compared with other star performers, were BCE Inc (NYSE: BCE) and Palantir (NYSE: PLTR). Both stocks delivered strong returns last month, but the collective value of holdings in these names lagged their underlying performances. That suggests a few long-term holders tuned out from the stories of each company, potentially due to opportunities elsewhere as the market rallied. 

In the case of Palantir, the stock once comfortably sat inside the top 10 for some time. This highlights the extent of its share price decline over the last 16 months, which has undoubtedly prompted some shareholders to lock in losses along the way.

US StockCompany1TSLATesla2AAPLApple3RYRoyal Bank of Canada4MSFTMicrosoft5GOOGLAlphabet6AMZNAmazon7BRK.BBerkshire Hathaway8BABAAlibaba9GMEGameStop10METAMeta Platforms11VOOVanguard 500 Index Fund ETF12NVDANvidia13ENBEnbridge14ARKKARK Innovation ETF15QQQInvesco QQQ Trust Series 116TQQQProShares UltraPro QQQ17BCEBCE18DISWalt Disney19AMDAdvanced Micro Devices20PLTRPalantir

That all for this Trade Trends report, stay tuned for the next edition this time next month!