Northern Hemisphere Versus Southern:
The two heavyweights in the internet retail arena are diverging. It is a recent development, but it is starting to become noticeable. On a YTD basis, there is a strong contrast too as AMZN is higher marginally by 10% and MELI is lower by 26% thus far in 2021. Looking at the ratio chart below one can see that AMZN is strongly pulling away after a nice breakout, and the last month is glaring. Amazon has advanced 6% while MELI has lost 17%, and on a 3-month lookback, AMZN has gained 5% whereas MELI has dropped 34%, not a typo. MELI has recorded back-to-back WEEKLY double-digit losses, both on the strongest WEEKLY volume in the last 6 months, and highlights round number theory as it recorded a double top at the very round 2000 figure in January-February and again in September. AMZN sits 5% off most recent 52 week highs (MELI 39% off its own yearly peak), and to me that 3600 number is key. It was the scene of a bull flag breakout which has since failed. However, if it can hold 3500 a handle is taking shape within the cup base pattern that began 5 months ago.