I am very bullish softwareBeautiful retest of the breakout for software. I'm a buyer of all the obvious names in this etf and the etf itself. AI agents is next big theme that will get love once we talk ourselves off the tariff cliff.
IGV trade ideas
IGV eyes on $93.xx: Double Fib support that may launch next legAI related chip/hardware stocks have been on the decline.
Money looks to be flowing into software, immune to tariffs.
$ 93.54- 93.69 is the exact zone of concern for bulls to hold.
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AI vs. Software: Is Software Ready to Reclaim Tech Leadership?Introduction:
The rapid advancements in artificial intelligence (AI)—especially with China’s DeepSeek—are reshaping the tech investment landscape. However, with all the focus on AI, could traditional software stocks be staging a comeback?
To answer this, we’re analyzing the Software CBOE:IGV vs. Technology AMEX:XLK ratio, a key indicator of relative strength within the tech sector.
Analysis:
Investment Flow Shift: Over the past few years, capital has largely rotated away from traditional software and into AI-driven sectors.
Bottoming Formation: The IGV-to-XLK ratio appears to have bottomed in June 2024, followed by a steady uptrend.
Breakout Watch: After a strong move in November, the ratio formed a higher low, a constructive sign of strength. Now, it is attempting to break out from a broadening bottom pattern—a significant technical development.
Potential Leadership Change: If this breakout holds and continues higher, software stocks could regain leadership within the tech sector, signaling a shift in investor sentiment.
What to Watch:
Bullish Confirmation: A sustained breakout above resistance would suggest software is regaining dominance within tech.
Bearish Rejection: If the breakout fails, AI-driven themes may continue to overshadow traditional software.
Conclusion:
The software sector appears to be making a strong case for resurgence within tech, especially if this breakout holds. A decisive move higher could mark a major sector rotation back into software stocks, challenging AI’s recent dominance. Will software reclaim its throne, or will AI continue to steal the spotlight? Let’s discuss in the comments!
Tags: #Software #Technology #IGV #XLK #AI #SectorRotation #TechLeadership #MarketTrends
IGV Wave 5 target 115 The chart posted is The IGV etf we stopped to the tick at 2.618 at 111 area for wave 5 of 5 o3 we are nearing the nearing the End of wave 4 of 5 of 5 and we should see a final run up to 115 area to end the 5th from aug 5th low . Then a much deeper decline best of trades Wavetimer
