Software Squeeze?

March 1, 2026 By in Artificial Intelligence, IGV, Software 2 Comments

Nascent Reversal

BARRON’S is reporting, the software sector is ready for a possible short-squeeze.

The chart shows penetration of support into a spring condition followed by a slight rebound higher and potential ‘test’ (not advice, not a recommendation).

Stay Tuned

Charts by StockCharts

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The Danger Point®, trade mark: No. 6,505,279

2 responses

  1. I hope so, I just put on a lot of software exposure. Keep an eye on cruise ship stocks too. They fell a little because of the Iran stuff.

    Like

    • The BARRON’S link is now behind a paywall.

      Here is one from msn: https://www.msn.com/en-us/money/topstocks/software-stocks-look-primed-for-a-short-squeeze/ar-AA1W9j2J

      Reading between the lines so to speak, it says to ‘expect’ a bounce, but then goes on to say the total amount short for several key players is not all that much. … I’ll be watching the retrace levels of 23.6% and 38.2%, to see how the market behaves if or when it gets there.

      Other sectors are already rolling over. The 3M trade discussed is well below (short) entry levels. TXN, is lower as well but could rally … NVDA might close its gap overnight or tomorrow morning.

      MongoDB just imploded.

      Airlines are down … but could rally to test.

      We have another negative P/E, reporting tomorrow (after hours): CRWD.

      AIG continues to grind higher and may or may not get to an upthrust condition. We’ll see.

      Thanks for the comment,

      Paul

      Liked by 1 person