Institutions are massively accumulating software stocks for the long term, absorbing every new low while price sits at potential resistance. A $9 million-plus call sale at next month's $100 strike and VIX call buying show them hedging a possible rejection at prior highs. If resistance breaks, that buying could fuel the largest software rally ever seen; losing the $102.70 accumulation level would be the next step down. x.com  x.com  x.com  x.com 

Software is heading for a renaissance as agentic AI transforms everything, and the software ETF IGV is consolidating ahead of a move higher. x.com 

Software stocks have a massive bull behind them: $20 million went into calls on the sector, and that bet is off to a strong start. x.com 

Software valuations are at 10-year lows, with a forward PEG ratio of 1.43 that is cheaper than the S&P 500's, which looks enticing unless software is truly dead. The software ETF is at a key crossroads, still below a bearish trendline in place since October despite a 3% Friday gain; a direct breakout would likely complete the bottoming phase, though it could still pull back to form a fuller inverse head and shoulders. x.com  x.com 

Palantir should see a positive stock reaction to its earnings report. Michael Burry recently covered a big chunk of his Palantir short, Microsoft performed well after its report last week, and software stocks, where Palantir is among the top holdings of the IGV fund, are turning around. x.com 

Snowflake and Palantir could spark a reversal in software because they benefit from AI yet sit inside a heavily shorted software ETF. Many hedge funds run long-semis, short-software-ETF trades, and because the ETF is not weighted purely by market cap, smaller names absorbed a lot of short selling and were pushed very low. Snowflake and Palantir carry high weights, so strong results from them could easily blow up the ETF's shorts and turn the sector. x.com