Discrepancy Widening:

The software group is widening now, its “moving like a tremendous machine”. For those unaware of the quote go back and listen to the dominant performance recording of Secretariat at the Belmont Stakes in 1973. If that does not give you goose bumps, check your pulse. The same could be said for the conduct of the IGV, especially compared to the action in the semiconductors. Now runner up Sham was no slouch in ’73, and neither is the SMH. The IGV sprinted higher by 7.4% this week, its best WEEKLY gain in nearly 4 months. Respect the move in the SMH that rose 2.8% this week CLOSING above a 3 week tight pattern, as the prior 3 weeks all finished within just 1.39 of each other, but software looks poised . The WEEKLY moves of best in breed semi plays in NVDA and AMD of 3.7 and 2.1% respectively, do not compare to the WEEKLY gains of 30.6, 26.6, 26 and 11.3 with CRM WDAY PLAN and FSLY. It looks like software it ready to resume its superiority over the semis with the IGV is higher by nearly 40% YTD while the SMH has gained 24%. As I have always said competition is a good thing both in life and markets. Each of these sub sectors of technology will try and outdo one another making them better and stronger in the process. 

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