Stocks This Week: Buy Hologic

June has been a weak month historically, second only to September. This bearish effect has dissipated over time. Over the last 50 years, the month has been up 30 times if the S&P 500 is used as a benchmark. This number is even higher if the S&P has been strong going into the month as it has been in 2023. The numbers on the DJIA are far less attractive, below 50% for June. Real estate stocks and telecommunication stocks have tended to be strong while technology, utility, and financial shares have tended to lag. I suspect that the market will be strong in the first half of the month, at least. There tends to be a correction in the third week. The S&P and especially the technology shares have such a strong momentum that the net result is likely to only be a shallow correction for the stronger stocks.

Hologic
HOLX
is number one in the Cycles Research cycles/relative strength screen for both the S&P 500 and the NASDAQ
NDAQ
. The company develops, manufactures, and supplies diagnostics products, medical imaging systems, and surgical products for early detection and treatment. The daily graph below shows that the stock has been correcting and is oversold. The monthly graph reveals strong relative strength since mid-2021. Note that price has broken out of a formation that projects an eventual rise to the $90-$95 area. June has closed on the upside 67% of the time over the last 33 years, the third strongest month of the year next to January and November.

HOLX Daily Graph

HOLX Monthly Graph