After the big drop Thursday, this is a quick 3-month performance review of some of the classic names that fit into each of these 3 groups
We can see that COVID tech (Tesla, Zoom, Plug Power) sold off, reopening trades (cruise lines, banks) rebounded and in the middle were some tech favourites that fared a little better (Alphabet, Twitter etc)
Of course yesterday's big drop could be the start of a top in the Nasdaq - but now that is not confirmed
Price is still above its rising trendline and 50 DMA, which means the pullback is a correction - and iif the uptrend is to continue, a dip to be bought
The flavour of the day in these unusual times appears to be pushing up stocks like Apple and Tesla after they announced a stock split. Is Amazon next in line?
Shares of Amazon currently trade at $3,500 and are arguably in much greater need of a split.
Tesla has rallied 70+% since its stock split announcement
Apple has gained circa 35% since its own plans were made public
The trend in the USD is down - and normally its a good idea to follow the tend
Europe second wave - euro negative
US cases coming down (possibly because of less testing)
US Treasury auction supply - 20 year bonds next week
New Zealand example of other central banks easing first
Haven flows without stimulus deal, US China relations (talks...
Tech is leading but the leadership in tech has been narrowing even further in the last month
Apple and Facebook shares are outperforming - while the rest of the FAANG - Amazon, Netflix and Google are under performing.
One possible trade is a to assume a return to the mean - ie the laggards pickup and/or the winners pullback
The other takeaway is that the market...