Cloudy Forecast:
Rain has been pouring down on cloud stocks within the battered technology sector. Perhaps one of the best examples is TWLO which last week cratered 43% on the largest WEEKLY volume in at least 5 years. SNOW after a double top at the very round 400 number is now 68% off its peak made almost one year ago. DDOG since touching 200 last November is now 65% off those highs. Now when one speaks of tech names that derive revenue from ads of course we know META and SNAP have been abysmal actors. Below is the chart of TTD which can be put into that category, and one has to wonder if it is being unfairly punished as it was an outlier jumping 36% on 8/10 after its last earnings release (REPORTS Wednesday before the open). Looking at the chart below the round 40 number has been good support numerous times dating back to 2020. Even with a blow-up how much of this is already PRICED in? It is down 9 of the last 12 weeks and fell 5.5% Monday and is on a 9-session losing streak, with the last 2 losing more than 11% with each accompanied by double average daily volume. I would wait until AFTER the release and see how the 40 level holds especially on a CLOSING basis Wednesday.