Out of Place

The last time we saw such a concentrated and widely-known collection of Nasdaq stocks climb steeply higher even as the market got whacked in many places was the AAPL AMZN GOOG RIMM (now BBRY) quartet back in October 2007. It is tough to argue that history necessarily must repeat after that market top, since history tends to rhyme rather than repeat.

But with the small cap ETF breaking sharply down from the broadening-channel-turned-head-and-shoulders-top on the 30-minute timeframe, updated below, we clearly still have a very narrow market on our hands and something sure does seem out of place. We have been tracking this topping pattern (on this timeframe) for several days now, especially in light of the prior rally since late-September. 

The blow-ups in the healthcare and biotech space are clearly adding risk to the tape, as well, not to mention the air of former momentum, darlings like DGLY GPRO clearly out of the tires. 

I will cover more about those topics, as well as actionable trade ideas across all asset classes, for Members in my usual Midday Video.