August and September were not good for stocks.
And those months really weren’t good for tech.
As we’ve mentioned, the Magnificent 7 took a beating when autumn started, and so did other tech-ish companies.
However, that has changed recently.
Tech and software has suddenly rebounded, and an example of that is SAP.
It’s in one of the top 40 best-performing sectors (out of 197), and it’s moving.
September was bad for SAP (no surprise), but it has bounced off of our 30-week simple moving average and appears to be sprinting toward a new high, just like MSFT (which we talked about in our last post).
If it moves above $145.10, we could see a new high and possibly much more.
We’ll keep it on our radar.
Happy trading,
— Scott Welsh
P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The chart above uses weekly candles and a 30 week simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45.
