Looking “Soft” No More:
We frequently used to like to mention earlier this year when in technology it seemed to be just the semis were working, that if both software and semis could get their wheels rolling at the same time it would be a very potent combination for overall markets. Well, that time has come as both groups have been humming along, although semis maintain their edge on both one and three-month lookback periods with the SMH advancing 25 and 26% respectively, and the IGV by 14 and 21%. If one were to look deep within these two groups however there are a myriad of opportunities to take advantage of at the moment. The WEEKLY chart below of GTLB could be a good example. It recently recorded a very impressive earnings reaction, jumping by 31% on 6/6, completing a bullish island reversal after the last earnings move was a dud falling by 24% on 3/14. On the WEEKLY chart, the very round 50 number has been an area of strong rejection since last fall and this time around may be the one that finally sticks. It offers good risk/reward here with a CLOSING stop below 45.50.