International Internet Slugfest:
Scouring the planet and comparing mega-cap heavyweight internet players shows some interesting divergences. As a whole one could look at a ratio chart of our domestic names via the FDN and lay it over the KWEB and one would see a very soft start to 2025, but the FDN is carving out a bullish inverse head and shoulders pattern. If one wanted to look at domestic versus the southern hemisphere, with individual names, they would highlight MELI against AMZN which is lower after hours on a soft earnings reaction. The ratio chart here is clearly in favor of “the AMZN of South America” in MELI since last December, and if the after-hours action is any indication it will take another leg lower. While MELI came within a sniff of 52-week highs Thursday before a small reversal, AMZN is still 23% off its own annual peak made in early February. MELI is yet another example of the growing number of emerging breakouts as it took out a double bottom pivot of 2202.10 on 4/25 but Thursday did record a small bearish dark cloud cover candle into the filled-in black candle from 2/21. Let’s see how AMZN CLOSES Friday to end the week. I think as long as this remains above 180 this will take out the add-on double bottom later in the second half of 2025.