Three software earnings reports this week could trigger a bounce, says Jay Woods
Investor Jay Woods is eyeing three earnings reports from the software sector this week to possibly trigger a bounce in the beaten-down space. But he cautions this is for swing traders and those with the risk tolerance. The iShares Expanded Tech-Software Sector ETF (IGV) is experiencing an epic drawdown because of fears of AI disruption, even as the rest of the bull market marches on. The IGV is down nearly 30% from its all-time high late last year, but has seen some ever-so-slight buying in recent days. Woods flagged this could happen on Thursday and said the results for Applovin , Datadog and Unity Software could be a positive catalyst for the bounce to continue. Datadog reports Tuesday before the bell. Applovin and Unity report after the bell Wednesday. IGV 1Y mountain iShares Expanded Tech-Software ETF (IGV) The chief market strategist at Freedom Capital Markets said: “It looks like a good opportunity to nibble for that swing trader. If it gets below $80-$77, [there’s] major support going back years. Let’s see if that can hold. That’s where I would buy another tranche of stock in the IGV.” Elsewhere, Cisco earnings are Wednesday after the bell. CSCO 1Y mountain Cisco, 1 year Woods said If Cisco can break the $85 mark, it may mark another breakout for the stock that traders can ride. In the Pro exclusive video above, Woods also touches on: The Dow 50,000 “hangover” How to trade Robinhood ahead of its earnings Tuesday after the bell. Jobs data out on Wednesday CPI data out on Friday.
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