Following Up On Palo Alto Networks And Salesforce.

The market is likely to rally into the January 7^th to 11^th time frame. Here is how the month of December looks from three different viewpoints:

Seasonally, the indices have been down about 61% of the time from the 8^th through the 15^th. Semiconductor stocks have tended to lead the decline in that interval, down 65% of the time. From the 15^th the DJIA has risen 74% of the time into January 11^th since 1885.

The strongest stocks continue to lead the market. Rather than make new stock selections, let us review prior ones and evaluate prospects into January.

Palo Alto Networks
PANW
was recommended on June 26^th at $243.8 and is currently trading at about $296, a 21% rise. There have only been ten years of trading, but price has risen in seven of ten years in the month of December. This bullish view is supported by the monthly cycle below which projects higher prices into January. In fact, the first two months of the year have seasonally been the strongest of the year. The weekly price chart reveals a breakout from a triangle and a new high in relative strength. The share price will likely exceed $325 by early January.

Palo Alto Monthly Cycle

Palo Alto Weekly Graph

Salesforce was selected on July 17^th at $228, rising 14% by the Friday close. The technical picture is strong. Price shows a gap up which is the beginning of a move. There are higher lows in momentum and a breakout to the upside in relative strength. The weekly cycle points higher through December. The $275-$285 level is a reasonable objective by the end of the month. Seasonally, the first two months of the new year have been favorable.

Salesforce

CRM
Weekly Graph

Salesforce Weekly Cycle