Stock Trends

From worst to first?

Good morning,

Yesterday’s FOMC statement and decision went off without a hitch. What did they say?

No idea.

But the market’s interpretation was clear. Bonds rallied, with the 2-year yield falling below 4.6%. And stocks rallied, with the first 80% up-volume day on the NYSE in over a month.

One day does not a trend make, but that should act as a tailwind for most stocks. But can it pull some of the year’s biggest laggards out of the dumps?

This week we’ll look at the technicals for some of the lagging technology bellwethers as well as:

• AI stocks outside of semiconductors

• Notable movers from the 2024 Base Finder report

• Software names rallying from oversold conditions

• and more!

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AI plays outside of semiconductors

New all-time highs for Arista Networks

ANET has been on our Blue Chip Hot List since October 5 and we’re now up more than 57%. The stock gained 3.4% yesterday, breaking out to new all-time highs and ending a 1-month consolidation that didn’t even break the 50-DMA.

Synopsys breaks out

SNPS was on the Hot List last year and sold for a double-digit gain while the S&P 500 was flat over the same period. Selling was the right decision as the stock has underperformed SPX since it was removed, but it is setting up nicely now. The stock has broken out of a descending wedge pattern and is nearing a MACD buy signal. A test of all-time highs looks likely.

CDNS remains strong

Cadence Design Systems is the one that got away. We were stopped out in early January for a 27% gain but the stock reversed hard and is within a percent of all-time highs. Strong trend and still a top idea in the space.

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From worst to first?