"Cisco (NASDAQ: CSCO) it's a true 'Dominator' company," says Toby Smith. "The company's major strategic advantage is its size and its marketing power to influence customers' decision-making."

"This is a good time to get on board, he says in his ChangeWave Investing, a newsletter that seeks to identify the leading company involved in enduring, long-term market trends.

He continues, "The company's primary value proposition is not quality or price, but being the single source for its customers' networking technology needs. Purchasers of Cisco's equipment won't lose any sleep over their decision to buy from them. The thinking is if it ain't broke, don't fix it.

"Our ChangeWave Alliance findings tell us that Cisco is gaining market share in all of its main product areas, and the company confirmed that in its Q3 report.

"Investor expectations were high prior to Cisco's quarterly report. So despite overall solid quarterly results and long-term outlook, CEO Chambers' remarks about problems among its U.S. enterprise business -- especially financials and autos -- quickly sparked a sell-off in its shares.

"You might be surprised to learn that U.S. enterprise business represents only 13% of Cisco's revenues and that most of its biggest growth is occurring in the developing countries and Europe, where orders and contracts with phone carriers bolstered sales.

Michael Ashbaugh, editor of The Marketwatch Technical Indicator, considers the market's recent move a legitimate breakout. He explains, "Each of the major U.S. benchmarks -- the Dow, the S&P 500, and the Nasdaq -- has broken sharply to multi-year highs, and in the process, notched consecutive closes above its 20-day bands."

Further, he adds, each major U.S. benchmark cleared its June high. He states, "That means technically speaking, the latest rally carried the earmarks of a valid breakout. As the major U.S. benchmarks extend higher, the potential upside from current levels is still significant."

Meanwhile, as to specific market sector, he notes that "We have chosen to highlight some names that are well positioned technically. These are intended as radar screen names -- sectors or stocks positioned to move near term."