By Gary Kaltbaum-
We write this and actually disclose who we are.-
The NASDAQ/NDX has been very strong in past months off of a select few mega-cap names. Earnings come out in droves in a few weeks but:-
FACEBOOK gapped down recently on potential for slower growth. On top of that, Facebook has put themselves front and center into the regulatory cross hairs. Mr. Zuckerberg did himself no favors in his testimony. Sheryl Sandberg did a much better job. The bigger issue will be their numbers going forward. A recent story in the NY POST highlights millenials not so thrilled with the company.-
GOOGLE stock has dropped about 90 points in recent days as the president ratcheted up his rhetoric on the company. We think it not smart that no one showed up yesterday for testimony. (Notice they were able to get yesterday’s hearing on the same day as Kavanaugh. Otherwise, would have been front and center.)-
TESLA stock continues to suffer…down almost 33% from the fake buyout price. That’s a measly $22 billion below the fake buyout price. We told everyone on radio and tv not to go near the stock.-
NETFLIX also had a poor reaction to earnings. It just bounced up to the 50 day, where it sold off hard yesterday. Worries about costs as well as more and more competition not helping the stock.-
These 4 stocks had been an important cog in the wheel on the upside but no longer. The good news is that APPLE and AMAZON remain very strong, though we think they started to pull back yesterday. If ever these stocks get taken out, look out. The NASDAQ, particularly the NASDAQ 100 have done quite well with these select few carrying a ton of influence. We also want to add that SEMI-EQUIPMENT MAKERS continue to be on the very defensive. Names like LRCX, AMAT, KLAC, MKSI, ASML and others acting like the south end of a north bound jackass. The 50 day moving average has held the NASDAQ 3 times recently. It currently sits at 7818…the NDX at 7366.-