Amidst total dull-dom, the small cap software names look to be catching a bid. Bids in this group have been as rare as whatever Macke saw yesterday on the wing of his plane, and they still can only be seen with the aid of non-prescribable drugs. Moreover, these bids are nothing like the bids we saw yesterday in the broad market. A small-cap software bid means the stock will not go down, and might even jump a dime in the presence of a truly reckless bid.
The silver lining is that no one will accuse bidders of these names to be chasing momentum. Some shareholders even argue that these are value names, though in brief moments of lucidity they have been heard muttering disconnected words such "value trap" and "stocks suck".
Using 1-second tick charts, they are beginning to emerge defined up-trends of as long as 30-45 seconds. At the risk of pulling a Macke-like shameless book-touting stunt, an example of such "hourly bull market" can be seen in Interwoven (IWOV). After a high volume bid-less day yesterday, today it's "sky-rocketing" to the underbelly of the 50DMA, and of a 5 months-downtrend line during which there were no bidders within the same planetary formation.
With that I will return to my "comfortably numb" state and enjoy this rare bid-fest . . . before the drugs wear off.
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