Stocks This Week: Buy Synopsys And Broadcom

The market is expected to rally into yearend. The NASDAQ 100 and the technology sectors maintained their relative strength right through the autumn overall market decline. These stocks are expected to maintain this strength through December. Stock selection is a bit difficult because so many of these equities are overvalued and overextended. The recommended stocks below are expected to appreciate due to cycles and relative strength.

The Cycles Research stock screen identifies stocks that are strong both in terms of relative strength and cycles. The 100 top free flow cash generators were analyzed. Synopsys
SNPS
is top-ranked. Synopsys provides electronic design automation software products used to design and test integrated circuits. The shares have risen by over 65% thus far in 2023. Seasonality is very favorable. November has been the strongest month of the year. Price has risen 78% of the time from October 8^th through December 31^st over the last 31 years. The stock is likely to reach the $625 level by yearend.

Synopsys Monthly Expected Return

Synopsys Daily

Synopsys Monthly Cycle

Broadcom
AVGO
is ranked second in the NASDAQ
NDAQ
100. It has been the strongest stock in the index in the month of December. The monthly histogram depicts the seasonal strength. From mid-October through yearend, the shares have risen almost 85% of the time over a short period of 13 years.

The monthly cycle ascends into January. Technically the stock is strong. Note the upturn in momentum in the weekly graph . Relative strength keeps hitting new highs. The stock appears to be headed over $1050.

Broadcom Monthly Histogram

Broadcom Daily, Weekly, Monthly

Broadcom Monthly Cycle