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Serhii Bondarenko's Avatar
published in Blogs
Jun 29, 2023

Profitable Swing Trading: Sector Rotation Strategy (TA&FA) for 6.77% ROI on ONTO

Heading: Swing Trader: Sector Rotation Strategy (TA&FA) Generates 6.77% for ONTO

In the world of finance, there are various trading strategies employed by traders and investors to maximize their returns. One such strategy is swing trading, which involves taking advantage of short-term price movements within an overall trend. When combined with sector rotation and a blend of technical analysis (TA) and fundamental analysis (FA), swing trading can yield impressive results. In this article, we will delve into the success of the swing trader's sector rotation strategy, which generated a noteworthy 6.77% return for ONTO, a prominent company in the market.

The Swing Trader's Approach:

The swing trader, armed with a sector rotation strategy, implements a unique approach to capitalize on market trends. By analyzing the performance of different sectors within the market, the trader identifies sectors that are expected to outperform others in the near future. This methodology involves assessing both technical indicators and fundamental factors to determine the sectors with the highest growth potential.

Technical Analysis and the Stochastic Oscillator:

Technical analysis plays a crucial role in the swing trader's strategy. By studying price charts, trend lines, and indicators, the trader identifies opportunities for profitable trades. One such indicator commonly used is the Stochastic Oscillator. This indicator compares a security's closing price to its price range over a specific period. It helps identify oversold or overbought conditions in the market, indicating potential reversals in price trends.

ONTO's Stochastic Oscillator Recovery:

In the case of ONTO, the swing trader noticed a promising opportunity. The Stochastic Oscillator of ONTO's stock had reached oversold territory, indicating a potential reversal in the price trend. Recognizing this as a favorable condition, the swing trader initiated a trade in anticipation of a price recovery.

The Result: A 6.77% Return:

The swing trader's sector rotation strategy, combined with the Stochastic Oscillator signal for ONTO, proved to be fruitful. The price of ONTO's stock indeed experienced a notable recovery, resulting in a substantial 6.77% return. This impressive performance highlights the effectiveness of the swing trader's approach and the power of sector rotation when combined with technical and fundamental analysis.

Swing trading, with its sector rotation strategy and the integration of technical and fundamental analysis, has proven to be a successful approach to generating profits. By identifying sectors with high growth potential and utilizing indicators like the Stochastic Oscillator, traders can seize lucrative opportunities within the market. ONTO's experience serves as a testament to the effectiveness of this strategy, showcasing a commendable 6.77% return. As traders continue to refine and adapt their strategies, swing trading with a focus on sector rotation remains a compelling option for those seeking profitable opportunities in the financial markets.

Related Ticker: ONTO

ONTO sees its 50-day moving average cross bullishly above its 200-day moving average

The 50-day moving average for ONTO moved above the 200-day moving average on November 03, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on November 25, 2025. You may want to consider a long position or call options on ONTO as a result. In of 97 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .

The Moving Average Convergence Divergence (MACD) for ONTO just turned positive on November 26, 2025. Looking at past instances where ONTO's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .

ONTO moved above its 50-day moving average on November 24, 2025 date and that indicates a change from a downward trend to an upward trend.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ONTO advanced for three days, in of 326 cases, the price rose further within the following month. The odds of a continued upward trend are .

Bearish Trend Analysis

The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.

The 10-day moving average for ONTO crossed bearishly below the 50-day moving average on November 21, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .

Following a 3-day decline, the stock is projected to fall further. Considering past instances where ONTO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

ONTO broke above its upper Bollinger Band on December 01, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

The Aroon Indicator for ONTO entered a downward trend on November 11, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. ONTO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 70, placing this stock slightly better than average.

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly weaker than average sales and a marginally profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.820) is normal, around the industry mean (7.863). P/E Ratio (43.383) is within average values for comparable stocks, (50.074). Projected Growth (PEG Ratio) (0.835) is also within normal values, averaging (2.018). ONTO has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.011). P/S Ratio (7.576) is also within normal values, averaging (37.325).

Notable companies

The most notable companies in this group are Applied Materials (NASDAQ:AMAT), Lam Research Corp (NASDAQ:LRCX), KLA Corp (NASDAQ:KLAC), Teradyne (NASDAQ:TER), Ambarella (NASDAQ:AMBA).

Industry description

The electronic production equipment industry makes equipment used to produce semiconductors. Such equipment includes wafer fabrication, plasma etching and photo-resist processing equipment. The industry also makes chemical vapor deposition processing systems and photomasks, which are high-purity quartz plates that contain patterns to define integrated circuits layouts. Applied Materials, Inc., Lam Research Corporation, and KLA-Tencor Corporation are examples of electronic production equipment manufacturing companies.

Market Cap

The average market capitalization across the Electronic Production Equipment Industry is 31.71B. The market cap for tickers in the group ranges from 555.66K to 417.27B. ASMLF holds the highest valuation in this group at 417.27B. The lowest valued company is AVSR at 555.66K.

High and low price notable news

The average weekly price growth across all stocks in the Electronic Production Equipment Industry was 3%. For the same Industry, the average monthly price growth was -8%, and the average quarterly price growth was 41%. AXTI experienced the highest price growth at 27%, while AMBA experienced the biggest fall at -22%.

Volume

The average weekly volume growth across all stocks in the Electronic Production Equipment Industry was -39%. For the same stocks of the Industry, the average monthly volume growth was -35% and the average quarterly volume growth was -1%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 53
P/E Growth Rating: 35
Price Growth Rating: 52
SMR Rating: 65
Profit Risk Rating: 69
Seasonality Score: 25 (-100 ... +100)
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ONTO
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A.I.Advisor
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These past five trading days, the stock lost 0.00% with an average daily volume of 0 shares traded.The stock tracked a drawdown of 0% for this period. ONTO showed earnings on November 06, 2025. You can read more about the earnings report here.
A.I. Advisor
published General Information

General Information

a company, which engages in developing process control systems and offers process control, combining global scale with an expanded portfolio of technologies

Industry ElectronicProductionEquipment

Profile
Fundamentals
Details
Industry
N/A
Address
16 Jonspin Road
Phone
+1 978 253-6200
Employees
1497
Web
https://www.ontoinnovation.com
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