{"id":6164,"date":"2020-02-05T10:47:49","date_gmt":"2020-02-05T15:47:49","guid":{"rendered":"https:\/\/morpheustrading.com\/blog\/?p=6164"},"modified":"2022-04-06T15:04:57","modified_gmt":"2022-04-06T19:04:57","slug":"best-software-stocks","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/best-software-stocks\/","title":{"rendered":"Why Software Stocks Are the Best Stocks to Buy Now"},"content":{"rendered":"<figure id=\"attachment_6170\" aria-describedby=\"caption-attachment-6170\" style=\"width: 640px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/medium.com\/ebaqdesign\/20-best-logos-of-tech-startups-in-2017-7b536b3381c5\" target=\"_blank\" rel=\"noopener noreferrer\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-6170\" src=\"https:\/\/new.morpheustrading.com\/blog\/wp-content\/uploads\/2020\/02\/software-logos-1024x791.jpeg\" alt=\"software\" width=\"640\" height=\"494\" title=\"\" srcset=\"https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/02\/software-logos-1024x791.jpeg 1024w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/02\/software-logos-110x85.jpeg 110w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/02\/software-logos-300x232.jpeg 300w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/02\/software-logos-768x593.jpeg 768w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/a><figcaption id=\"caption-attachment-6170\" class=\"wp-caption-text\"><em>Source: ebaqdesign on medium.com<\/em><\/figcaption><\/figure>\n<h1>In our previous post, we showed why the broad market remains in a healthy uptrend&#8211;despite the short-term pullback that began on January 24.<\/h1>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">TABLE OF CONTENTS<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/morpheustrading.com\/blog\/best-software-stocks\/#Led_by_software_stocks_the_Nasdaqs_sudden_relative_strength_is_once_again_creating_fantastic_breakout_trading_opportunities_for_swing_traders_Heres_why%E2%80%A6\" >Led by software stocks, the Nasdaq&#8217;s sudden relative strength is once again creating fantastic breakout trading opportunities for swing traders. Here&#8217;s why&#8230;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/morpheustrading.com\/blog\/best-software-stocks\/#Software_Sector_%E2%80%93_The_New_Sheriff_in_Town\" >Software Sector &#8211; The New Sheriff in Town!<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/morpheustrading.com\/blog\/best-software-stocks\/#Top_Software_Stocks_Breaking_Out_Now\" >Top Software Stocks Breaking Out Now<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Led_by_software_stocks_the_Nasdaqs_sudden_relative_strength_is_once_again_creating_fantastic_breakout_trading_opportunities_for_swing_traders_Heres_why%E2%80%A6\"><\/span>Led by software stocks, the Nasdaq&#8217;s sudden relative strength is once again creating fantastic breakout trading opportunities for swing traders. Here&#8217;s why&#8230;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Both the S&amp;P 500 ($SPY) and Dow Jones Industrial Average ($DIA) have popped back above their 10-day moving averages since our <a href=\"https:\/\/new.morpheustrading.com\/blog\/01-30-20-stock-update\/\" target=\"_blank\" rel=\"noopener noreferrer\">January 30 market update<\/a>, but still remain below resistance of their previous highs.<\/p>\n<p>On the other hand, the tech-heavy Nasdaq Composite ($COMPX) and Nasdaq 100 ($QQQ) indices both surged to fresh all-time highs on increasing volume yesterday.<\/p>\n<p>Considering the negative backdrop of two ugly <a href=\"https:\/\/www.investors.com\/how-to-invest\/investors-corner\/tracking-distribution-days-a-crucial-habit\/\" target=\"_blank\" rel=\"noopener noreferrer\">distribution days<\/a> at the highs in late January, along with a global virus scare, the impressive move to new highs indicates the Nasdaq is currently showing <em>excellent relative strength&#8211;<\/em>thanks to massive rallies and new breakouts in the software industry.<\/p>\n<p>Continue reading to discover how you may profit from the <em>best software stocks breaking out now!<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Software_Sector_%E2%80%93_The_New_Sheriff_in_Town\"><\/span>Software Sector &#8211; The New Sheriff in Town!<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The key to all market rallies is continual sector rotation, and the current rally has plenty of it.<\/p>\n<p>The building, biotech, and semiconductor sectors led the broad market higher in the fourth quarter of 2019.&nbsp; But those sectors have been pulling back to make way for a new sheriff in town!<\/p>\n<p>Since about 80% of daily stock market volume is attributed to institutional trading activity, it can be quite profitable to ride on the coat tails of mutual funds, hedge funds, and other &#8220;smart money&#8221; players when they rotate funds from one sector to another<\/p>\n<p>Last month, we noticed institutions began rotating funds out of previous leading industries (like biotech and software) and into software stocks&#8211;<em>so THAT is where we want to be!<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Top_Software_Stocks_Breaking_Out_Now\"><\/span>Top Software Stocks Breaking Out Now<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>We first wrote about emerging leadership in the software sector when we listed Datadog ($DDOG) and Snap ($SNAP) in our recent blog post, <em><a href=\"https:\/\/new.morpheustrading.com\/blog\/breakouts-2020-ddog-snap\/\" target=\"_blank\" rel=\"noopener noreferrer\">2 Top Software Stocks Poised for Explosive Breakouts in 2020<\/a><\/em>.<\/p>\n<p>Datadog has followed through quite well since then, with <strong>$DDOG shares rocketing 17% higher<\/strong> since that January 13 article. $SNAP has been chopping around in a range.<\/p>\n<p>In the model portfolio of <strong><em><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noopener noreferrer\">The Wagner Daily<\/a> <\/em><\/strong>newsletter<em>,<\/em> we recently bought Anaplan ($PLAN) and Avalara ($AVLR) to take advantage of that shift to software industry leadership.<\/p>\n<p>Our recent buy entries into both $PLAN and $AVLR are shown below:<\/p>\n<figure style=\"width: 752px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2019\/200205AVLR.png\" alt=\"$AVLR daily\" width=\"752\" height=\"669\" title=\"\"><figcaption class=\"wp-caption-text\"><em>Long $AVLR breakout with +6% gain after first day of entry<\/em><\/figcaption><\/figure>\n<figure style=\"width: 752px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2019\/200205PLAN.png\" alt=\"$AVLR daily\" width=\"752\" height=\"669\" title=\"\"><figcaption class=\"wp-caption-text\"><em>Long $PLAN with +6% gain on our recent breakout entry<\/em><\/figcaption><\/figure>\n<p>Both stocks on the charts above have broken out from <a href=\"https:\/\/new.morpheustrading.com\/blog\/best-stock-breakouts\/\" target=\"_blank\" rel=\"noopener noreferrer\">valid basing patterns<\/a> on increasing volume&#8211;always a bullish signal.<\/p>\n<p>Just as $DDOG has done, both $AVLR and $PLAN have the potential to zoom 20% to 40% higher during the next 4 to 8 weeks<em>&#8211;if <\/em>overall broad market conditions remain bullish.<\/p>\n<p>If you missed the &#8220;official&#8221; buy entries from our nightly <strong><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noopener noreferrer\">newsletter<\/a><\/strong>, both $AVLR and $PLAN could still provide profitable swing trading opportunities by patiently waiting and monitoring for 2 to 3-day pullback buy entries.<\/p>\n<p><em>Discover our top tips for How To Manage Your Winning Trades at the upcoming Morpheus Boot Camp webinar. Join us <a href=\"https:\/\/www.facebook.com\/events\/189418319093361\/\" target=\"_blank\" rel=\"noopener noreferrer\">free on Facebook Live<\/a> on February 5, 2020 at 8:00 p.m. EST.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In our previous post, we showed why the broad market remains in a healthy uptrend&#8211;despite the short-term pullback that began on January 24. Led by software stocks, the Nasdaq&#8217;s sudden relative strength is once again creating fantastic breakout trading opportunities for swing traders. Here&#8217;s why&#8230; Both the S&amp;P 500 ($SPY) and Dow Jones Industrial Average [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[3],"tags":[],"class_list":["post-6164","post","type-post","status-publish","format-standard","hentry","category-stock-trading-strategy"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/6164","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=6164"}],"version-history":[{"count":5,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/6164\/revisions"}],"predecessor-version":[{"id":11174,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/6164\/revisions\/11174"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=6164"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=6164"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=6164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}