Well, what a day…QQQs -1% although the price action underneath showed a much more telling story…Not a great day to be a sw investor - things were already bad and they took another step function lower last night post CRM and PATH debacles. Lots of de-grossing action across software books today NOW -12% is notable. That de-grossing seeped into other sectors as well such as internet (consensus longs META/AMZN/NFLX -1%+) and semis (NVDA /AVGO/MU all underperforming heavily). Really one of the more sharp de-grossing days across the board in Tech in a while. IGV -5%, one of the worst days of the last 5 years outside of Covid.
Software:
Where to start - massive de-grossing on the day and the only pockets of green were more highly shorted stocks like AI +20% and PLTR +4% (on the back of an Army contract win/ AI “lateral”). ESTC/ZS look fine after the close, but MDB will continue to put fear into investor’s minds. One of those days where the majority of moves had more to do with de-grossing…
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