Nothing But a Bastard from a Basket of Software Stocks

Given the day-to-day indecision we have seen from the broad market it is tough to get behind a given thesis at the moment with heavy conviction. Of course, the market can change in a New York Minute, which is why we are diligently keeping tabs on the very best relative strength names for Members on a daily basis. 

But if the small caps in the Russell 2000 Index, for example, are going to flop around like a fish out of water on their IWM ETF daily chart, then we will continue to keep net exposure minimal and wait out the summer doldrums for some better direction and clarity. 

In the meantime, note that a bunch of software charts are holding up rather well, unperturbed by some recent selling in tech. 

Mimecast, below on the daily timeframe, is a name we have liked for a while now. Its recent 50-day moving average pullback found support at that widely-watched reference point in June. And now MIME is attempting to emerge from its early-summer dip this morning. 

There are other such software charts like MIME, some of which we noted barely even pulled back in June, which are worth watching in the event the market strings together some rallies this month. Otherwise, they may be relegated to simply being bastards from a software basket which we have on the back-burner but cannot be aggressive with given broad market conditions.