In the least surprising move of 2026, the machines are rotating into software
Reference Friday’s now public NFTRH+ subscriber update:
Here’s What’s Getting Rotated In
As subscribers know, I had been poking away at Cloud Software stocks that I felt were unfairly smashed by the AI-induced SaaS Armageddon hype. Getting okay trades and getting singed alike, trying to bottom feed.
The theory? Sure, some basic companies are going to go the way of the Do Do bird. But others are going nowhere, and I have tried to ID those companies in light of the smack down of the entire sector. Got to love them machines, baby. Indiscriminate to the downside and yup, to the upside as well.
Now the real move is here.
Anyway, as the update notes, I already took the profit on DataDog, neglected buy Crowdsrike, but do hold a few others, each of which are getting the “me too!” bid now.
Software is a Goldilocks-biased segment (not adversely affect by a strong USD) that was ripe for a comeback (you’ve gotta think like a machine before the machines get the code and act on it). Here’s one of ’em, Zscaler, going “me too!” to its sub-sector mate, CRWD.
I am posting in order to illustrate how markets work when they are rotating. Not recommending anything publicly, because we’re already too far into the play. I also want to watch to see if the recovery in this beaten down area is perhaps the final act for the current phase of the bull market.
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