Dog With Fleas:

Gordon Gekko made a reference to the canine population in my top 5 movies of all time Wall Street, and perhaps he was seeing into the future with the chart below of DDOG. Some large-cap software names are holding up well in the group including CRWD and ADBE but most are looking heavy now. We will discuss some of them in detail later in this note. Others that should be looked at in a cautious light are those that have already displayed weakness beforehand. Stocks like U TWLO and FTNT are now lower by at least 30% from their most recent 52-week highs. Getting back to DDOG this name has been spoken of as a takeover candidate for years now and it trades more than one-quarter of its annual peak and is back into the lower end of the WEEKLY range from the week ending 8/11 that shrunk by almost 17% in the third largest WEEKLY volume since coming public 4 years ago. This week slumped almost 7%, it’s second-largest WEEKLY loss in 6 months and if its 200-day SMA is taken out to the downside in the near term look out below.

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