Battery Running Low:

When it comes to automobile names the first company that comes to mind is TSLA. The stock may be in need of a charge, pun intended. It is a drag on the XLY as it is the second-largest holding comprising 15% of the fund, and Thursday it broke below a bull flag formation. From FALSE moves come fast ones in the opposite direction and I think we can see a 15-20% haircut in the near term. Looking around the world it is not shocking that many of the best actors are from Europe, as that region has been resolute overall. RACE is now bull-flagging after a trio of dubious doji candles in quick succession on 2/2-3 and 2/8. Rolls-Royce is behaving very well, and BMWWY looks similar to RACE. STLA is looking for a 6-week win streak as it trades right at 52-week highs and up 4.5% heading into Friday. Getting back to TSLA it will weigh heavy on the overall consumer space, and on a YTD basis it has now surrendered its top spot to the communication services sector. The top component AMZN is no help either as it is in freefall.

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