Security Issues:

Software names as measured by HACK and the IGV have a very strong correlation as seen on the PRICE chart here. The need for security will never go away but some of these names have recorded awful reactions this quarter. OKTA slumped 8% on 5/30 reversing right at the very round par number, in the middle of a current 11 of 12 session losing streak. It has filled in the gap from 2/28 and today completed the 3-day rule for buying an earnings debacle. CSCO, the second largest holding, just registered its third straight negative earnings reaction on 5/16 with a bearish engulfing candle, but this has been a laggard for some time, although a dead cat bounce is underway with a 4-day win streak. Perhaps the weakness in the HACK fund could be its composition, with the third largest component in PANW more than 20% off its most recent 52-week highs. Fellow top ten name CRWD REPORTS after the bell and its last reaction on 3/6 jumped more than 10% but CLOSED well off the intraday highs and recorded a big bearish filled-in candlestick. Notice how on 5/28 it traded right into that top of that dubious candle and faded, recording a bearish dark cloud cover candle. Of course, this is pure conjecture but what I think is likely is a disappointment then a flush to take out the lows and set up a double bottom for later in the second half of 2024.

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