Software Leader Bending?
The software leader based in our neighbor to the north, feels like it wants to head south. It is still premature as PRICE has not confirmed a breakdown, but SHOP should be kept on a possible short list. Remember again that playing shorting opportunities should be strictly on a tactical basis, looking for gains of 5-10%. This week started on a “soft” note down more than 2% on a lukewarm tech tape, but 5 of the last 6 weeks have CLOSED at or within the lower half of the WEEKLY range, and the lone one that did not, the week ending 7/31 still finished nearly 100 handles off an intraweek high. It has recorded a massive move from the round 300 number to 1100 from the March lows to recent highs. SHOP now trades 10% off most recent 52 week highs, and other leading peers that dropped in the 2% neighborhood Monday were TWLO DOCU DDOG NET TDOC and VEEV. Am I expecting material weakness from these generals, probably not, but a quick wash out of 5-10% would wash out weak share holders for the next potential move higher.