With the NASDAQ Composite down 1.3% at 1,708, the S&P 500 Index down 1.15% at 1,072 and the NASDAQ-100 Index (NDX.X) down 1.4% at 1,404, the perception is that all technology stocks are getting hit to the downside. This isn't necessarily so.
Yesterday I got several upside alerts from stocks at retracement levels at the lower ends of their retracement brackets. The GSTI Software Index (GSO.X) has been acting stronger of late and this had us adding another bullish play in the software sector for premierinvestor.net in shares of Veritas Software (NASDAQ:VRTS). I thought we might see a down day after futures were lower at the opening of trading, but Veritas is acting well and there's room to run.
Veritas Software Chart -
The chart of Veritas Software (NASDAQ:VRTS) looks strikingly familiar to another software stock we mentioned in previous weeks. The break above the 80.9% retracement level and some consolidation around that level, then a nice upward move to 61.8% retracement. Do you remember that stock?
PeopleSoft Chart -
In premierinvestor.net's 10/10/01 Market Wrap and then in 10/11/01 at 09:00 AM EST we profiled a bullish trade in shares of PSFT and were targeting the $30 level for traders. On 10/11/01 shares of PSFT shot higher to a session high of $29.54 and came close to our bullish target. For four sessions the stock struggled and struggled at the $29 level, before finally being downgraded by some brokerage firm. Could it be that the brokerage firm downgrading the stock just didn't have enough of it in their inventory at $29 and needed a pullback to $24 to top off? Not sure, but PSFT is back and something's going on in the software sector.