Battery Charge Needed:

The cult investors in Tesla must be feeling a bit antsy at the moment. Without question, a rising January tide lifted all boats, including electric vehicles, as the stock doubled during the month. Among all the bullishness surrounding the name, it is still 47% off most recent 52-week highs without the courtesy of a 2:1 split (a dry stab at humor). PRICE had been so depressed that its 200-day SMA did not even slope higher during that run (of course it’s a longer-term line but an ascent like that without a budge was surprising to me). This name has a huge weighting at 14%, and AMZN is almost twice as influential at 25%, so it will move the needle with the XLY. The ratio chart below shows market participants’ fondness for large over smaller caps when the XLY is compared to the XRT. AMZN for the second time has demonstrated timidness trading into the bearish evening star pattern completed on 2/3. If the mega caps retreat in a meaningful fashion from here investors who are positioned short overall will have a nice end of the first half of 2023.

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