Keysight Technologies Inc. (KEYS) – bought @103, it went up to $154 in 3 months = 49.5% return.

We recommended the stock back in October, 2020 as a great long-term growth play, and as one of our favorite picks in the Technology sector and in the underlying Electronics-Measuring instruments industry. We noted that the price was re-testing the strong support around the $102 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 49.5% higher 12 weeks. 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 XLC Communication Services 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.


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