Ready To Take The Baton?

The software group made a nice stand the last couple sessions this week to eke out a fractional gain of .3%. Volume was exceptional, although it could be a bit misleading. The ETF saw huge volume, on the only declining days this week on Monday and Wednesday, dropping 2 and 2.4% respectively. We enjoy comparing the software group to the semiconductors, and interestingly enough the SMH outshined the IGV this week, rising 5.5%. It was eerily similar to the week ending 12/18/20 that saw the IGV gain 5.6% and the SMG fall 1.1%. On a very short term time frame the SMH did record a bearish counterattack candle Friday at all time highs, after a recent bull flag breakout. That is not the action one wants to see so quickly after a breakout. SNOW, which could become a bellwether in the group, recorded an excellent session on Thursday adding more than 13% on robust trade. The recent IPO, now 30% off highs made exactly one month ago, however CLOSED 25 handles off intraday highs Friday. Stock selection is going to be of upmost importance in 2021.

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