The cloud computing group has been a leading group, but the group is being sold off today from a downgrade on CTXS, as well as EQIX anticipating a revenue miss due in part to slower revenues in their switch and data business.
With the run up the group has enjoyed, it is susceptible to pullbacks.
On ORCL, it has only recently broken out. In the report we sent earlier today, we were referring in particular to the cloud-computing stocks which have led the market since its lows in late August. There is always the chance that money will rotate out of the hotter, smaller cloud stocks and into ORCL as a more stable play in the group. However, it becomes a general market question, and if the market continues to fade here we would prefer to be long less and in cash more, or even short.
That said, last week's and this week's negative action on the group pushes the model closer to a neutral or a sell signal, but as of now, it still remains on a buy signal.
We will keep members apprised of any changes in the model.
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