Rising Tide Lifts All Boats:

Perhaps the old adage should be rephrased “a rising tide lifts too many boats”. I am willing to give this very nascent tech rally some belief but there is still plenty of work to be done. The low volume question could be taken out of the conversation to the naysayers as last week was robust or was the expiration Friday the reason (trade Wednesday was the third strongest of 2022 so far). Give credit for the Nasdaq CLOSING the last 4 days of the week at highs for the daily range. Getting back to the theme in the opening sentence some names most likely were ramped up in PRICE more than they should have in last week’s euphoria, and that can be an opportunity on the short side. A couple of potential examples happen to be beaten up software stocks, an area of softness in tech until this week’s 9.2% jump in the IGV. Buy strength and sell weakness will always be relevant, and DOCU and COUP epitomize this. Both are still more than 70% off the most recent 52-week highs even with powerful intraweek moves last week. They are probably a good place to start.

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