Technology traders spent most of Wednesday paralyzed as they awaited the latest quarterly financial results report from a key enterprise software firm. The Nasdaq 100 closed at 15,462, a gain of 0.6%, states Jon Markman, editor of Strategic Advantage.
The advance for the benchmark was the fourth consecutive. The bulls have made back a lot of ground since the NDX gapped lower on August second. After the close Salesforce, Inc. (CRM) reported better than expected financial results.
The stock promptly shot up nearly 8% in extended trade. The Salesforce number and commentary from executives about the state of enterprise spending are going to be a problem for bears. They have a lot vested in the idea that corporate profits are waning and that spending plans are being reduced heading into 2024.
The Salesforce forecast flies in the face of that narrative. Salesforce has reached nearly 80% of S&P 500 (SPX) companies. Its custom relationship management software products and services are widely used.
If Salesforce is doing well, corporations are spending. Bears are now likely to concede a rally to 15,637, the gap from the big decline on August second.
Double Trouble: Members purchased on August 23 in ProShares UltraShort QQQ (QID) for $13.25, and closed half of the position a day later at $13.75, a gain of 3.8%. The second-half position was closed Monday morning on stop at $13.43, a gain of 1.4%. The overall gain was 2.6%.
This position is now closed.
We are getting ready to enter the long side.