Facebook (FB) bought @ $247 – it went up to $303, which represents a 22.7% return in just 3 weeks

We recommended the stock back in August 2020 as a great long-term growth play, and as one of our favorite picks in the Internet-Services industry. We noted that the price was testing the strong former resistance, now support around the $247 mark and that if the price was to hold its ground around that support, then that would serve as a great buying signal 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 22.7% higher in just 3 weeks. The stock is part of the XLC, which tracks the US telecommunication and media & entertainment components of the S&P 500 index. XLC offers exposure to the Communication Services sector that was defined by the September 2018 changes to the Global Industry Classification Standard (GICS). The fund includes all members of the former telecom sector (expanded to include internet service providers), as well as media & entertainment companies previously classified in the consumer discretionary or tech sectors. This latter industry group includes many heavyweights such as Facebook, Alphabet, Netflix, and Disney. Through our correlation-confirmation approach we compared XLC’s price performance to the XLK Technology Select Sector SPDR ETF, and used the strong and positive 10-year correlation of 90% between the two indices in order to validate our market recommendations.

Sincerely,

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