Cisco Systems Inc. (CSCO) – bought @35.50, it went up to $45 in 4 weeks and to $50 in 16 weeks = 26.7% and 40.8% return respectively

We recommended the stock back in November, 2020 as a great long-term growth play, and as one of our favorite picks in the Technology sector and in the underlying Computer-Networking industry. We noted that the price was re-testing the strong support around the $35 mark and that if the price holds its ground around the support that would serve as a great buying opportunity for our followers. We recommended for our clients to wait for the price to start moving up from the above-mentioned support before committing fully to the stock and opening their long positions. The anticipated price development to the upside occurred shortly thereafter and the stock moved 26.7% and 40.8% higher in less than 4 and 16 weeks respectively. The stock is part of the XLK, which tracks an index of S&P 500 technology stocks. XLK was the first to launch in this space, as such it offers a more narrow focus on the US technology segment. Its S&P 500-only portfolio tilts away from our segment benchmark. XLK is heavily concentrated and also a few that seem like misfits, such as financial payment processers or telecom firms. Its limited selection universe excludes small-caps and most midcaps. Avoiding smaller, less-stable firms results in lower volatility and a tilt toward value. Through our correlation-confirmation approach we compared XLK’s price performance to the XLP Consumer Staples Select Sector SPDR ETF, and used the strong and positive 10-year correlation of 79% between the two indices in order to validate our market recommendations.

Link to the article: https://www.dowexperts.com/stock-picks-for-november-2/

Sincerely,

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