This software leader could soar as stocks stage a comeback

There’s an excellent chance it leads the market higher from here. [Justin Spittler's Trade of the Week] This software leader could soar as stocks stage a comeback Stocks just made an epic comeback. Last week, the S&P 500 rallied 5.9% while the tech-heavy Nasdaq climbed 6.5%. But it wasn’t just the indices… It was a broad-based rally. All 11 sectors closed the week higher, with many important “risk on” industries leading the way. Some traders worry this rally will run out of steam. But my research indicates this could be the start of something big.  If true, NOW is the perfect time to start positioning ourselves in the very best stocks. That brings me to the latest Trade of the Week: Synopsys (SNPS). Synopsys is very similar to Cadence Design Systems (CDNS), which I encouraged readers to buy a month ago. (It specializes in chip design, making it a direct beneficiary of the artificial intelligence movement.) In fact, SNPS and CDNS are among today’s strongest stocks. To understand why, let’s pull up a weekly chart of SNPS. She’s a beauty, isn’t she? As you can see, SNPS barely gave back any gains during the recent market pullback. This is clear evidence of relative strength. It tells me institutions stepped in every time the stock dipped. That’s what we love to see. As a result, SNPS is still trading above its rising 10- and 30-week moving averages. And it’s still in a strong uptrend: Source: StockCharts SNPS is also in one of the “best industries” groups. See, semiconductor and software stocks held up extremely well during the recent correction. There’s an excellent chance they lead the market higher from here. The same is true of Synopsys, which is why I suggest buying a starter position in SNPS today. I believe the stock can hit $620 within the next 12–18 months. Exit your position if SNPS closes below $445. That gives us a risk-reward ratio of 3:1 on this trade. Action to take: Buy SNPS at current market prices. Risk management: Exit your position if SNPS closes below $445. Justin Spittler Chief Trader, RiskHedge PS: You’re invited to RiskHedge’s first-ever private online AI event—the "[Trillion-Dollar AI Investment Portfolio](.” During the big event, my colleague Stephen McBride will share 5 popular stocks about to be disrupted by AI... 5 AI stocks to buy ASAP... and 1 pre-IPO company to add to your watchlist. Plus, much more. It’s a full AI portfolio you’ll receive just for attending, complete with Stephen’s full analysis and research. [Grab your early bird ticket here.]( If someone forwarded you this email and you would like to be added to our email list to receive Justin Spittler's Trade of the Week every week, [simply sign up here.]( This email was sent to {EMAIL} as part of your subscription to Justin Spittler's Trade of the Week. To opt-out, please visit the [unsubscribe page](. [READ IMPORTANT DISCLOSURES HERE.]( YOUR USE OF THESE MATERIALS IS SUBJECT TO THE TERMS OF THESE DISCLOSURES. Copyright 2023 RiskHedge. All Rights Reserved RiskHedge | 1417 Sadler Road, PMB 415 | Fernandina Beach, FL 32034