The Mega-cap names have been digesting their 2020 gains since early September. Go one by one and most of them are down over the past 3+ months. All except the last one at the bottom.
The Tesla bulls will love this one:
I think this certainly speaks to the relative strength in Tesla, for sure.
But there’s more going on here that I think has really important implications.
The resolutions out of these consolidations is going to weigh heavily in determining the direction of the next major move for US Stocks, and most likely stocks as an asset class.
These numbers are as of the close on Monday. Check out these converging trendlines defining the series of lower highs and higher lows in the market’s biggest names:
These are the consolidations we’ll be watching. With each one of these that pulls a $TSLA and breaks out to new highs comes another feather in the hat for the bulls and another nail in the coffin for the miserable permabears that have gotten absolutely stampeded this year.
I don’t feel bad for them. People who fight trends and bring their egos into this business need to learn somehow. I know I sure did. I’ve been there. But never again.
I think you guys can see that. But I had to learn. We all do.
I’ll check back in soon