The Rising Tide Lifting Most of These Boats

In the short-term, as is fairly obvious at this point, the broad market is stretched and could easily pause into next week.

But the clear winner of late has been the hot software space. Into the inevitable consolidation, I am stalking the likes of ZEN and company for fresh entires. We played EBIX and RP with Members in recent weeks, and now the issue comes of identifying a proper secondary entry as long as the health continues. 

Part of the nature of a potent industry move is that we see most boats lifted with the tide. While it is true that Stamps.com (STMP) is technically a software firm and has been acting horrendously, for the most part that is an outlier. 

Case in point, recent IPO SCWX, which a Member pointed out to me in recent weeks, is bucking the lethargic summer Friday action today and breaking the $15 level we had been observing. This is yet another software play and may be ripe for a large, extended move the rest of the year if software remains the place to be. If the IPO can now hold over $15 into next week, I would consider an entry here, too. 

To my eye, I am much more intrigued with these types of plays than whether WFC or C beat earnings, or trying to bottom-fish a lagging biotech.