Follow The Leader:

As one waits for this overall ugly tech decline nearly 2 years in the making to subside it hardly means there is nothing to do. Watchlists should be made and at the top of anyone should be names that are showing nascent leadership. Outperforming peers early on and showing strength when others are either shy or not able to do some is a valuable characteristic. Semis have been showing some muscle and now select software names are trying to emulate their tech cousins. Below is the chart of a possible example in DT, which is now 2% above the huge WEEKLY gain of 17.8% the week ending 11/11. This week is displaying fine relative strength up better than 10% and is now above its 200-day SMA for the first time in more than one year. Wednesday it CLOSED at the top of the daily range ignoring the tech reversal for a second straight session. Buy this on a pullback at 40.25 and use a stop of 37 if the trigger is hit.

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