Future Case Study:

Going through the top components in the Nasdaq 100, I was surprised to see PEP as the ninth largest holding in the ETF. Below is the chart of TSLA, the fourteenth biggest component, and the name needs no introduction. It is strange as some may declare it is in a “bear market” as it trades 20% off most recent 52 week highs. The candlesticks have been helpful in some situations, and not in others. In vibrant bull runs that we are in currently, little makes sense, except PRICE action as always. AMZN recorded a long legged doji candle at all time highs on 2/11, after running nearly 400 handles since 1/27. The jury still out there. MSFT registered a bearish counterattack candle on 2/5, and a dark could cover on 2/11. As parabolic as those moves have been it is hard to compare to TSLA. It has been held at bay by the recent evening star, a 3 day pattern therefore holding a bit more significance. After coming into close proximity to the very round 1000 number on, it has been unable to CLOSE above the 800 figure. The bulls, in my opinion, have to reclaim that number before the uptrend resumes.

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