Software Acting Anything But:
Often leading groups need a breather after extended runs. Between late 2017, and early this year software reigned supreme against its semiconductor rival. Clearly capital has been flowing into semiconductors since March, but is software ready to recapture best of breed status? Give credit where it is due, for software as the IGV is now just 2% off most recent 52 week highs. The chart below shows the fund acting well POST breakout from a double bottom recently, and last week registered its first 4 week winning streak since February. Sure volume has been declining recently, but that could be a positive going forward as many are non believers in the move thus far. Trade can return in earnest once the naysayers are converted. On its WEEKLY chart it is approaching a cup base add on through a 230.97 pivot. That was the high made back the week ending 8/2 which recorded a bearish engulfing candle, and sent the fund 25 handles lower to its trough. If the semiconductors and software can trade powerfully in tandem a Santa rally can be a real powerful one.