The Nasdaq did register its 8th straight weekly advance up 2.4%, but it was the weakest of the major 4 most serious investors follow. It was outdone by the Russell 2000 which jumped 4.1% (the Dow rose 3.1% and the S&P 500 by 2.5%). It was held back by some of the mega caps like AAPL which was UNCH for the week, and still trades 27% off most recent all time highs. AMZN has CLOSED right at lows for the weekly range for 3 consecutive weeks and GOOGL recorded a bearish engulfing candle to end Fridays session underneath its 200 day SMA. Bulls should come away impressed that the Nasdaq is holding up well overall, given the odd behavior of the three aforementioned behemoths.
Big Blue No Longer Melancholy:
IBM has been not just on the dead money list for which it seems an eternity until recently, but had been a perennial loser sine hitting resistance at the very round 200 number earlier this decade. Its disposition has improved remarkably recently and the acquisition of one of the software leaders RHT has certainly helped at a juicy premium on 10/29/18. It still rests 15% off most recent 52 week highs, but a good risk/reward scenario with its 200 day SMA is now in place.
Spinoffs are not a very common thing, but can often leave the parent company better suited to focus on its core business. And the spinoff benefits as it can excel as it can shine on its own out of the shadows of the bigger entity. Some in the tech space have struggled with DXC and CNDT off by 32 and 42% off their most recent highs. Below is the chart of FTV, which was spun off from DHR, and how it appeared in our 2/12 Technology Report. It has advanced 22 of the last 30 sessions, and is now above the ascending triangle and is now honing in on an 88.44 cup base trigger.