EB Special Report - Software Breakout Candidates

I wrote an article yesterday in my Trading Places blog at StockCharts.com, "It May Be The Boring Summertime, But Don't Tell These Stocks". It featured 4 high growth stocks that have returned to favor and are benefiting from the recent shift back to growth vs. value. This shift is very likely just beginning. I'm a big fan of growth stocks longer-term as I've often repeated. Now that the stock market is once again rewarding these stocks for their huge growth potential, I thought it would be a good time to pass along a few high-growth software stocks that I believe are on the verge of a key breakout. So, in no particular order, here they are:

Twilio, Inc. (TWLO)

ServiceNow, Inc. (NOW)

Cadence Design Systems, Inc. (CDNS)

Datadog, Inc. (DDOG)

Avalara, Inc. (AVLR)

Akamai Technologies, Inc. (AKAM)

Zendesk, Inc. (ZEN)

Software has gained tremendous relative strength as you can see from this chart:

We should be prepared in the event that the DJUSSW breaks out to another all-time relative high. If it does, many of the above software stocks will likely participate and break out on their own.

I hope you find the above information helpful as we maneuver through yet another earnings season.

Happy trading!

Tom