Parabolics $CRWD $AVGO and $PANW gapping down big on earnings beats.
This is a signal that a pause in these types of extended stocks may be in order. Not necessarily the entire market. We may start to see money flow into other areas.
Notice the cycle that played out. Software and lagging hardware stocks bottomed (we called it back when it was happening -see past IGV analysis). Leaders start to breakout, continue and get extended. A rising tide lifts all boats - mid tier and finally junk in the industry start to run as well. Now at extreme levels failure to continue on good news. This is the common cycle.
Now here we are not predicicting failure or change in trend. Rather, on watch for consolidation and pullbacks.
$CRWD has rode the software/#AI wave over the past month and is gapping down hard after earnings. It beat expectations but needed more at these levels. On watch if it pulls back hard to key support levels.
$CRWD has rode the software/#AI wave over the past month and is gapping down hard after earnings. It beat expectations but needed more at these levels. On watch if it pulls back hard to key support levels.
After lagging the market most of 2026 in order to consolidate a monster run, $PLTR is looking to get back on trend. Notice the money flow trend. A close above the 200ma triggers low risk high reward entry.
Entry at 162 with target at 206 high and stop around 10 points offers 4:1 RR.