We really do not need to mince words here.
While the S&P consolidates under the 2400 area, THE BIG-CAP TECH/INTERNET remain en fuego. Simple as that. We can tell you that this kind of narrow leadership ultimately is not good but we would rather tell you this is the place to be until it isn’t.
3 big names remain…FACEBOOK, APPLE and PRICELINE. Otherwise:
GOOGLE gapped up on numbers and acts well.
AMAZON gapped up but got distributed the same day…but the next day (yesterday) ramped into a closing high.
NETFLIX acted poorly on earnings…turned around immediately and broke out of a tight range.
ALIBABA just keeps ascending.
PRICELINE breaks out of tight range and hasn’t looked back. Earnings next week.
FACEBOOK reports this week. Just ascends.
APPLE moved above another short range but earnings out today.
On top of this, while it is no longer A-Z in semiconductor-land, the SOX looks in good shape still.
We are not advocating buying, selling, shorting or covering any of these names. Many are extended. We are just pointing out these areas continue to be strong. Some names have reported. A few more are about to report.
We also wanted to make note that Jack Dorsey, the CEO of TWITTER just bought almost $10 million of his stock in the open market , after earnings were reported and the stock having a positive reaction.
Continue to avoid everything energy/oil &gas, most commodities, anything auto, big retail and while financials have stopped going down, need to see better leadership out of them before giving the green light again.