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Two NASDAQ stocks stand out as relative outperformers.
Fastenal’s weekly cycle is giving a buy signal this week. This cycle has a very regular rhythm. It has given four buy signals and all four have led to profits in the last year. Given the strength in the rebounding market, the stock has already begun its rally. In the second chart, note that relative strength has actually risen during the market decline, having bottomed in October. There is an old Wall Street maxim that the stocks that hold up best in any correction will eventually emerge as the leaders when the market recovers.
The company is due to report on the 17th, so the cycle suggest that the news will be met with buying. The stock is likely to rise to challenge the prior high at $60.
Chart 1
The weekly cycle bottoms now.Cycles Research Investments LLC
Chart 2
Relative strength has been strong and is likely to sustain.Cycles Research Investments LLC
KLA-Tencor gives a cycle buy signal this week. In the last year, 4 of 5 buy signals have been successful. As with Fastenal, relative strength has been superior since October. The stock has already begun to rise as the market recovers. The shares are likely to rally closer to $100.
Chart 3
This weekly cycle points up through the month.Cycles Research Investments LLC
Chart 4
This stock outperformed during the decline.Cycles Research Investments LLC