This Market May Need a CARB Refeed Day or Two

We spent the morning locking in some gains on extended longs while rolling some capital down to stocks setting up nicely to follow the Nasdaq's momentum higher. While it is true that a rug-pull can materialize at any moment, we do not exactly have a furious buying frenzy out there as the pace of the action still smacks of a summer drift higher. 

At any rate, we continue to monitor the small cap breakout attempt closely to see if it holds. And if it does, then it logically follows that plenty of smaller cap tech plays stand to benefit. 

One such example we highlighted for Members over the last few days has been Carbonite, Inc., a cloud archiving, backup, and restoration software firm with a market cap under $1 billion.

On the CARB monthly chart, below, note the heavy buy volume pattern since last August. Indeed, those huge buy volume bars of the bottom pane of the chart do not seem like mom and pop buying, but rather growth managers piling in. Earnings are scheduled for August 1st. 

Either way, names like CARB seem to be the place to be instead of IBM and other mega caps.