Software Courageous:

The software ETF, the IGV, is starting the week out well. Tuesday it added to the nice action on Monday, after the fund recaptured its rising 50 day SMA. Skeptics will state that the action is eerily similar to last week when it rose 1.8% last Monday and Tuesday as well, before turning tail Wednesday with the last 3 sessions falling 3.2%, between 9/16-18. Bulls will point to the volume surge the first two days of this week as a reason for optimism. Tomorrow it will be going for its first 3 day winning streak in nearly a month, to show just how lopsided the action has been. Notch one more sanguine aspect for the bulls and it would be the recent bullish behavior in the face of plenty of supply coming to the market. In the last 5 sessions alone, three software stocks have come public, with the high profile SNOW (now more than one quarter off its intraday highs from 9/16), and U and FROG. The latter two surged Tuesday, both up double digits.

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