This Secret Rally Is Far From Over
There’s a secret rally occurring in the markets, and no one is talking about it.
Yet folks in the know are clocking YTD gains like 27.65%, 29.77% and 39.09%.
And that’s just off this sector’s ETFs. Single-stock gains in this sector, year to date, include 51.20%, 68.88% and 79.55% among many other double-digit winners.
Odds are you haven’t heard of these companies. But that’s why you turn to us. For the hidden market story that will pay you the most.
Today we’re talking about the software services sector. And how these “boring” tech stocks are making folks rich as we speak.
Software Stocks Could Make Your Year
Back in January, we noted a tech revolution was underway and it would force us to reconsider where we looked to bank profits in technology stocks.
Over the past few years we’ve had a ton of success with hardware stocks, like semiconductors. But this year software companies are taking over as market leaders.
We’ll look no further than the recent chart for proof:
Three of the most popular software ETFs — the Invesco Dynamic Software ETF (PSJ), the Invesco DWA Tech Momentum ETF (PTF) and the SPDR S&P 500 Software & Services ETF (XSW) — are crushing the S&P 500’s gains year to date.
The major financial outlets have completely overlooked this story, but it’s only a matter of time before the retail money starts flowing into these stocks.
Which in turn could mean plenty more profits to take in this sector.
Big Data = Big Money
I’m not the only one tracking this explosive growth story, either. My friend and trading expert Greg Guenthner offered his take on this silent yet explosive software rally yesterday…
“Salesforce.com Inc. (NYSE: CRM) provided a caffeine jolt to Wall Street early Monday morning when the firm agreed to acquire data analytics software company Tableau Software (NYSE: DATA) for $15 billion in stock…”
“The deal, which pushed Tableau shares to a gain of more than 33%, comes just days after Alphabet Inc. (NASDAQ: GOOGL) announced its own purchase of data analytics startup Looker. Both Alphabet and Salesforce are shoring up their data offerings for cloud customers to fend off major competitors such as Microsoft Corp. (NASDAQ: MSFT) from invading their turf, MarketWatch notes.”
With big tech names scrambling to shore up their presence in the cloud computing space as fast as possible, the question now, as Greg states, is:
“Could Saleforce.com’s bold buy kick off a fresh wave of acquisitions in the data analytics/cloud software space?”
In all likelihood the answer is a resounding YES.
Greg notes speculators were already snapping up shares of several big name software stocks ahead of yesterday’s market close.
Taking all this into account, I firmly believe we have a lot more room for gains in this sector too.
For one thing, if the uptick in M&A activity we’re already seeing this year continues, this could create a buying frenzy and send select software stocks skyrocketing.
And once retail investors get a whiff of this action and blindly start pumping money into any and all things software, I expect many software stocks to skyrocket in the second half of this year.
For Technology Profits Daily,
Chief Technology Expert, Technology Profits Daily