What’s Up With the Cloud Stocks?

September 4, 2015 Off By David

Grazed from TheStreet. Author: Bruce Kamich.

The cloud has been a hot topic in the media and some of the cloud-related plays have also been hot in the financial markets. Has anything changed in the past month? Let’s check the meteorological charts just to be sure. Starting with the First Trust ISE Cloud Computing Index Fund (SKYY), we can see a five-month double top formation in the chart below. With the selloff from $31 to $26 last month, volume began to increase on the decline. Notice how the On-Volume-Line (OBV) has inched lower. Increased volume on down days suggests that investors are liquidating longs.

NetSuite (N – Get Report) has been in a "low pressure" funk all year with prices working irregularly lower, as seen in the chart below. Prices could decline further to next support around $80, and a deeper decline to the 2014 low at $70 cannot be ruled out…

Read more from the source @ http://www.thestreet.com/story/13278578/1/whats-up-with-the-cloud-stocks.html