The market is likely to rally into the January 7th to 11th time frame. Here is how the month of December looks from three different viewpoints:
Seasonally, the indices have been down about 61% of the time from the 8th through the 15th. Semiconductor stocks have tended to lead the decline in that interval, down 65% of the time. From the 15th the DJIA has risen 74% of the time into January 11th since 1885.
The strongest stocks continue to lead the market. Rather than make new stock selections, let us review prior ones and evaluate prospects into January.
Palo Alto Networks
PANW
Palo Alto Monthly Cycle
Palo Alto Weekly Graph
Salesforce was selected on July 17th at $228, rising 14% by the Friday close. The technical picture is strong. Price shows a gap up which is the beginning of a move. There are higher lows in momentum and a breakout to the upside in relative strength. The weekly cycle points higher through December. The $275-$285 level is a reasonable objective by the end of the month. Seasonally, the first two months of the new year have been favorable.
Salesforce
CRM
Salesforce Weekly Cycle
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