Software Greenshoots?
The IGV is now 20% off most recent 52 week highs and the question is is it so bad that its becoming good? The ETF has not met its measured move below the bear flag pivot of 380, but those measured move are just possibilities. Some “old tech” names in the group flexed their muscles Friday. Baby steps, but this marred group needs all the help it can get. For one CHKP completed a 6 week winning streak with this week jumping 5.6%, and taking out a double bottom pivot of 124.46 in the process. It now trades 8% off most recent 52 week highs, much better than the IGV is trading 21%. NLOK also is on a 6 week winning streak too and is now back above the huge WEEKLY gain of 23.7% the week ending 5/14. There has been consolidation in the group to show there is some “value” in the arena with MIME NUAN and VCRA being taken out in recent months. Below is the chart of AZPN and it advanced 5.7% this week on the best WEEKLY volume in nearly 3 months. I believe one can dip their toes in on the three aforementioned names. It they continue to work you can add to the position. Averaging down is not something I do, especially in this environment.