On This Day, We Remember that Darlings Often Become Pariahs
On a day that the S&P and Nasdaq set new all-time highs, we take a look at the market's narrow breadth and consider how the market's former darling, CSCO, sets a new low. Will this be NVDA's eventual fate? We also look at AMD, UBER, TSLA, and others.
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The Market
On this day that the S&P and Nasdaq made new all time highs there were 99 stocks that made new highs on the NYSE. Nasdaq fared a tad better with 131 new highs. None came close to their recent peak readings. But hey, for most of the day, the Nasdaq had more new lows than highs and in the end it squeaked out more new highs than lows by ten.
On this day that folks found themselves loving on Nvidia, the fan fave stock of this cycle, I find it ironic that Cisco, the darling of the late 1990s found its way to the new low list. I am not, nor have I been, bearish on Nvidia but there is a message in this: eventually darlings become pariahs.
On this day that the S&P made a new high the upside volume on the NYSE chimed in at 66% while Nasdaq was a touch better at 70%. Heck, they couldn’t even get breadth positive enough to halt the decline in the McClellan Summation Index.
On this day that bond yields fell yet again the Utes were down one percent.
But you know what? It is still a narrow market but it is also a market that sees the selling dry up as soon as we go down. It is still a market where folks get bearish in a hurry (see yesterday’s commentary on the economy). And that’s the market we have.
And I would not be surprised one bit if the market were down on Thursday.
New Ideas
To show you how narrow the market is, last week I said I thought Advanced Micro Devices AMD should rally again. Having caught the rally off 150, I thought a few weeks of consolidation ought to lead to another push higher. But look at it. It is pretty much the same price it was then, if not a buck lower.
Having come down quite a bit Uber UBER is finally starting to curl under. Maybe it can even fill that gap overhead near 70.
Today’s Indicator
The Volume Indicator has come down this week. It is now 52%
Q&A/Reader’s Feedback
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I have tried to bottom fish in Tesla TSLA several times in the last month or so and each time the stock pops and then it seems to give it right back. It has literally been trapped between 170 and 180 for so many weeks now that the risk/reward isn’t bad with a stop under 170.
The best thing I can say about Celsius CELH is that it is right near support. It ought to bounce but that’s the best I see right now.
If I were to map out how a decent bottom could occur in Neogen NEOG it would be something like I have drawn in blue. An alternative is that it corrects right now and then makes a stab at getting over that line.
The last time we looked at DraftKings DKNG I noted the head and shoulders top in it. It has not met the objective of 32 but it got close. And there is a lot of support down there too. It would be much healthier if the stock did some work down here but lately they don’t seem to want to do the work before they rally and then come down again.
