When The Facts Change I Do Too…..
Software via the IGV had the look of a tried ETF the last few weeks. Not surprisingly round number theory came into play, at all time highs. If it would have went on a precipitous decline, one would have thought it was well needed, or justified. But to its credit the fund is showing resilience near the very round 300 number. It has shrugged off a doji candle on 7/9 CLOSING eight pennies below 300. Then a bearish dark cloud cover that was rejected intraday precisely at 300 on 7/21. Then came four straight CLOSES above 300 between 8/3-6, before the next 3 sessions fell back below 300, losing a combined 5.5% on above average volume. This Wednesday was above 300 once again intraday, before finishing 3 points off its intraday high. Thursday’s CLOSE was resolute. The bears chorus of reasons to be fearful is now being silenced with each passing day. The burden of proof is on the furry creatures to continue with the negative thesis, as this looks to be merely a consolidation of a prior powerful uptrend. Either way the rest of August will likely resolve where this space is headed in the near term, most likely higher.