There is good news for stock market bulls. The big technology stocks have been pulling the indices up, but the rally now has more support. The buying has spread to the small and medium cap stocks.
The Cycles Research screening process has been effective in identifying outperforming stocks. This process is applied to the S&P 600 small-cap index. Here are the top ten in the small cap 600:
1-Onto Innovation Inc. (ONTO)
2-InterDigital, Inc. (IDCC)
3-Diversified Healthcare Trust (DHC)
4-Hawaiian Holdings, Inc. (HA)
5-Abercrombie & Fitch Co. (ANF)
6-M/I Homes, Inc. (MHO)
7-Unisys Corporation (UIS)
8-RadNet, Inc. (RDNT)
9-American Woodmark Corporation (AMWD)
10-G-III Apparel Group, Ltd. (GIII)
From this group, more tools are utilized to select the stocks with the greatest potential.
InterDigital, Inc. operates as a global research and development company with focus primarily on wireless, visual, and related technologies. There are monthly breakouts both in absolute and relative strength. The stock will likely trade over $120 by late January. This stock has been the sixth strongest in the 600 in the month of January.
InterDigital Daily, Weekly, Monthly
American Woodmark Corporation manufactures and distributes kitchen, bath, office, home organization, and hardware products for the remodeling and new home construction markets. Weekly, we see higher lows in momentum running back to 2021. Monthly, relative strength has broken a five-year downtrend. The $95-$100 level is a likely target in Q1.
American Woodmark Daily, Weekly, Monthly
G-III Apparel Group, Ltd. designs, sources, and markets women’s and men’s apparel in the United States. The stock has been declining since 2015 both absolutely and relatively. These trends have reversed. There are higher lows in momentum, but the shares are not overbought. G-III has been the fifth strongest stock in the index in January. The $40-$50 range is a likely target.
G-III Daily, Weekly, Monthly