Stocks This Week: Buy Broadcom And Consolidated Edison

There will likely be a pullback or consolidation in the next week. Downside is limited to the top of the rectangle in the S&P in the 3575-3600 area. However, the very short daily cycles suggest that the first 3 days of the week will be up. These cycles point down in the last 2 days of the week. This cycle conflict is likely to manifest in a very limited weakness, likely a consolidation. Recall that the S&P has broken out to the upside and points to much higher prices. This and positive seasonality is the strongest development that must be kept in mind.  

The Broadcom daily cycle is bottoming. The daily cycle buy signals have been profitable in all eleven cases in the last year. The daily rhythm bottoms on the 7th and tops on the 21st. Price may rise to $420-$425. The monthly cycle also rises in the next week. The company reports on the 9th.

AVGO Daily Cycle

AVGO Daily Graph

The daily Consolidated Edison cycle (nine of ten have been accurate in the last year) bottomed on December 4th and tops on December 26th. In addition, the weekly and monthly cycles are rising. The seasonality is very favorable. Over the last 40 years, the stock has risen 77.5% of the time from December 4th to the 23rd. The $80-$85 area is a reasonable target in December.


ED Daily Cycle

ED-Daily Graph


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