Welcome back for another Top Down Trade of the Week.
This is a classic leadership scan.
We start with the best sectors, then drill into the subgroups. We pick one, and then take a look at the top stocks in it.
This week’s standout is Communications, which jumped one spot to take second place in our sector rankings.
Here’s a look at our overall industry rankings, where Communications Equipment surged to the 12th spot.
This group has been quietly gaining momentum, with several names breaking out to new highs this week.
Below are the Top 10 names in the Communications Equipment subsector, ranked by relative strength.
This week’s favorite pick is Arista Networks $ANET:
Arista Networks has been in a steady uptrend since breaking out of a massive base in 2021. The stock has been outperforming and consolidating constructively along the way.
ANET broke out to new all-time highs this week, and I think it is embarking on a long-term leg higher.
If and only if we’re above 130, I like it long with a target of 203.
Our team at ASC is constantly running these kinds of top-down scans. If you want access to our research and the trade ideas that come out of it, join us today—risk free.
