PRE MARKET
Not a good day yesterday for TECH/INTERNET/SOCIAL MEDIA.
Names like FB, GOOGL, TWTR act poorly. They are a tail wind for market for a long time. On top of that, even AMZN and AAPL now pulling back. On top of that, poor action in TSLA and NFLX not helping. TSLA down another $15 this morning as Chief Accounting Officer Dave Morton provides notice of resignation effective immediately. He just joined August 6.
So…beta changing up some here but it is not just that. For a while we have been telling you how almost half the market not participating and every time we get weakness, they just worsen. Yesterday, SEMI EQUIPMENT was smacked even worse. Go look at KLAC, AMAT, MKSI, LRCX. MU also hit. Worry about pricing.
Also and to repeat for the hundredth time, EMERGING MARKETS, RUSSIA, CHINA, BRAZIL, TURKEY, EAFE and many other areas around the globe…from ARGENTINA to GREECE…all acting poorly. The U.S. market is so much stronger than the rest of the world. There has to be the question on whether we get dragged down.
Other areas in poor shape are HOUSING, GAMING (squashed), OILS, GOLD/SILVER, COMMODITIES, AUTOS, HOTELS and can now add bad patterns in BROKERS AMTD, SCHW, ETFC, a few RETAIL names like AEO, FL, ANF, GPS, M, URBN…though there remains a good number of nice RETAIL patterns.
Just know some issues showing up for the market, namely the big megacap narrow leaders in TECH/INTERNET/SOCIAL MEDIA.
Futures down decently even though employment numbers look decent. FIVE, OKTA, MRVL, PANW gapping up.
TSLA gapping down…