Texas Instruments (TXN) has traded as high as $42.33, $42.34, and $42.37 over the past 3 sessions, essentially meeting our $42.50 per share initial upside target first mentioned in our May 3rd report entitled Relative Outperformance Trend Emerging In Technology.
Rather than waiting for an additional $0.13 advance to “officially” meet our target, we consider this investment idea, which has already captured a 15% rise in the stock since May 3rd, to be completed.
From our May 3rd report:
This chart is significant not only as a long idea, but also because TXN has maintained a tight and relatively stable positive correlation to the NASDAQ 100 (NDX) at various intervals over the past 20 years, most recently +90% since the beginning of the year. Per the correlation, an upcoming 16% rise in TXN should coincide with an upcoming period of intermediate term trend strength in both NDX and the Technology Sector.
During the same May 3rd to November 1st period, the NASDAQ 100 (NDX) has coincidentally risen by 16% while the NDX has outperformed the benchmark S&P 500 (SPX) by 6%.