Large Cap Affinity:

There has been an ongoing shift within technology to more mature names. Obviously, that is not the case with stocks like MSFT GOOGL META, and AMZN. Even AAPL is starting to feel heavy and it is the only one that never undercut the 10/13 session lows which were very positive with almost everything recording a bullish engulfing candle. Select “old tech” plays like ORCL that are catching some love. SANM jumped double digits Tuesday and registered its FOURTH straight positive earnings reaction (and now 9 of the last 11). Below is the chart of German software play SAP which has advanced 5 of the last 6 weeks and the lone decliner last week still CLOSED in the upper half of the WEEKLY range. It is still 34% off the most recent 52-week highs and is approaching the very round par number, which has been influential in the past. Tuesday recorded a spinning top candle after a quick 20% jump and CLOSED just above its 200-day SMA. If one was fortunate enough to catch this ride it would make sense to take some off the table.

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