Recite The Alphabet:
As the Nasdaq approaches the very round 10000 figure, currently about 2.5% away, one has to keep in mind just how robust this run has been. In 2020 thus far it has recorded back to back losing sessions, just once on in 1/24-27 which lost nearly a combined 3%. The argument that there is no where else to allocate capital too, and that liquidity controls markets still resonates clearly. Among the “big five” tech names, GOOGL seems to be holding up the best as of late. We did mention we thought FB was a short on an upside earnings gap fill from the 1/29 session, and that looks relevant thus far. Give AAPL and AMZN credit for just trading 2% off most recent all time highs, and MSFT could be the next one to soften in my humble opinion. The chart of GOOGL below is my favorite of the mega cap bunch. Each of the last 4 weeks seems to be digesting the 14 of 15 week winning streak the weeks ending between 10/11/19-1/17. Do not be surprised if this march continues higher in firm fashion, IF a breakout occurs.